Microsoft has confirmed that Office 98 for the Macintosh has a bug that can corrupt the System Folder, but only if a user is uninstalling the product. The bug, which strikes when users run Microsoft's Remove Office 98 utility, in some cases will move the System Folder into the trash. If the user then empties the trash, the System Folder could be lost or damaged. Microsoft, which discovered the bug in-house, reports that it occurs only when users have moved the Office 98 library into the extensions folder physically. Microsoft has said it will post a fix for the bug on its Web site sometime this week. In the meantime, the company is suggesting that users not run the utility. Apple To Sell Subnotebook In Japan The Newton may be gone, but Apple Computer is poised to begin marketing a brand new subnotebook computer in Japan in the next few months. Unfortunately, customers in the United States aren't likely to see the new product at all. The tiny new notebook, which Apple says will be designed and built exclusively by IBM Japan, will be distributed exclusively by Apple's Japanese division. Set for release sometime next quarter, pricing has yet to be determined. In the meantime, Apple is preparing a sub-$2,000 notebook that features the same PowerPC 750 processor included with the considerably more expensive G3 notebooks. It is expected that sub-$2,000 notebooks will make up the fastest growing market in the computer industry this year. Chip Makers Break New Groud Overseas Texas Instruments has reported that its TI India Semiconductor IC Design Center has developed a new digital signal processor. The processor is the first chip completely designed in the country. The new chip was developed at Texas Instruments' design center, founded in 1985 in Bangalore. The digital signal processor facility was added in 1995 and is one of only a few such centers worldwide. The new design, dubbed "Ankoor," combines signal processing and design into one chip, which makes it possible for manufacturers to trim costs by replacing two chips with a single processor. DSP chips are used in a variety of electronic appliances, including cameras, mobile phones and fax machines. Motorola, meanwhile, has signed a contract with officials in the Polish city of Krakow that paves the way for construction of a $110 million semiconductor plant there. As part of Krakow's Special Economic Zone, the new facility eventually will employ as many as 500 people. The plant will be built in two distinct phases, the first of which includes development of an $18 million software center. The semiconductor plant will come as part of the $90 million second phase and is expected to begin manufacturing in the year 2000. While the Polish government reportedly offered Motorola both the land and the infrastructure needed to build the facility, it is not yet known what tax breaks were included in the agreement. Poland's Special Economic Zones were designed specifically to entice foreign investors by offering tax related incentives to companies that develop properties there.