IBM Pay $1.5B to Remove Chip Manufacturing Headache




/ 10 years ago

ibmlogo1

IBM has just secured a deal with Globalfoundries Inc. to offload their chip-manufacturing unit for a cool $1.5 billion today. The news has been leaked by “two people with knowledge of the matter” and comes around the same time that IBM released an announcement telling all to watch out for a big announcement coming tomorrow.

Ginni Rometty, IBM’s CEO, has reportedly been in talks about this deal for months with Globalfoundries. Finally securing a deal to offload their chip manufacturing responsibilities for $1.5 billion with a return of $200 million worth of assets – making it a total $1.3 billion expenditure.

The chip-manufacturing unit has been a long-term headache of IBM’s, with them seemingly happy to finally put it behind them following some frustrating unprofitable results. The company taking it on, Globalfoundries Inc, is owned by an investment arm of the Abu Dhabi government. It will be utilizing these facilities to increase expertise of its engineers in the fundamentals of semiconductor design and manufacturing.

The deal is said to see Globalfoundries supplying IBM with Power processors in return for IBM sharing its intellectual property, allowing Globalfoundries to access said technology and guarantee a steady flow of supply/demand. The $1.5 billion owed will be paid over the course of three years and will not see IBM losing its chip manufacturing process completely, just think of it as a partial outsourcing.

IBM and Globalfoundries have both currently declined to comment publicly on the matter, but all should be revealed tomorrow.

Image courtesy of Delimiter


Topics: ,

Support eTeknix.com

By supporting eTeknix, you help us grow and continue to bring you the latest newsreviews, and competitions. Follow us on FacebookTwitter and Instagram to keep up with the latest technology news, reviews and more. Share your favourite articles, chat with the team and more. Also check out eTeknix YouTube, where you'll find our latest video reviews, event coverage and features in 4K!

Looking for more exciting features on the latest technology? Check out our What We Know So Far section or our Fun Reads for some interesting original features.

eTeknix Facebook eTeknix Twitter eTeknix Instagram eTeknix Instagram
  • Be Social With eTeknix

    Facebook Twitter YouTube Instagram Reddit RSS Discord Patreon TikTok Twitch
  • Features


Send this to a friend
})