IBM's production of G5 chips at its futuristic factory in East Fishkill New York is improving.

IBM has confirmed that the production of new G5 chips using its new 90nm fabrication process is improving, but "has not yet reached target", executives told Reuters yesterday.

The company has experienced low yields of the new PowerPC 970FX G5 processor that's built using the process, which has impacted on late delivery of Apple's new Xserve G5s (which employ these chips) and is thought to have delayed new iterations of its G5 Power Mac products.

It appears fabrication flaws in the new processors have decreased, the company said, promising to do a "better job" of meeting demand form client companies, including Apple.