IBM Pays GlobalFoundries $1.5 Billion To Spin Off Chip Unit

Big Blue is selling off another piece of itself -- and paying a large sum to do it. IBM is shelling out $1.5 billion in cash over the next five years to GlobalFoundries, a full-service semiconductor foundary, in a move to spin off its chip division. IBM shares are down 7.5 percent in morning trading.

As part of the deal, GlobalFoundries will become IBMEUs exclusive server processor semiconductor technology provider for 22nm (nanometer), 14nm and 10nm semiconductors for the next 10 years. The deal aims to let Big Blue move deeper into areas like the cloud, mobile, big data, analytics, and secure transaction-optimized systems.

EUThis acquisition enables IBM to focus on fundamental semiconductor and material science research, development capabilities and expertise in high-value systems, with GlobalFoundriesEU leadership in advanced technology manufacturing at scale and commitment to delivering future semiconductor technologies,EU said IBM Senior Vice President and Director of Research John Kelly.

IBMEUs shift toward big data, cloud and mobile is nothing new. The company has already announced it was earmarking $3 billion over the next five years for semiconductor technology research to lead in the next generation of computing.

What GlobalFoundries Gets

Under the terms of the agreement, GlobalFoundries gets primary access to the search from IBMEUs joint collaboration at the Colleges of Nanoscale Science and Engineering, SUNY Polytechnic Institute, in Albany, NY.

GlobalFoundries also gets intellectual property assets, including thousands of patents. In fact, after the deal closes the firm will hold one of the largest semiconductor patent portfolios in the world. The firm also wins semiconductor technical talent to help it develop advanced process geometries at 10nm and below. In addition, it has an open door for business opportunities in industry-leading radio frequency and specialty technologies and ASIC design capabilities.

EUWe can now offer our customers a broader range of differentiated leading-edge 3D...

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IBM Pays GlobalFoundries $1.5 Billion To Spin Off Chip Unit

Big Blue is selling off another piece of itself -- and paying a large sum to do it. IBM is shelling out $1.5 billion in cash over the next five years to GlobalFoundries, a full-service semiconductor foundary, in a move to spin off its chip division. IBM shares are down 7.5 percent in morning trading.

As part of the deal, GlobalFoundries will become IBMEUs exclusive server processor semiconductor technology provider for 22nm (nanometer), 14nm and 10nm semiconductors for the next 10 years. The deal aims to let Big Blue move deeper into areas like the cloud, mobile, big data, analytics, and secure transaction-optimized systems.

EUThis acquisition enables IBM to focus on fundamental semiconductor and material science research, development capabilities and expertise in high-value systems, with GlobalFoundriesEU leadership in advanced technology manufacturing at scale and commitment to delivering future semiconductor technologies,EU said IBM Senior Vice President and Director of Research John Kelly.

IBMEUs shift toward big data, cloud and mobile is nothing new. The company has already announced it was earmarking $3 billion over the next five years for semiconductor technology research to lead in the next generation of computing.

What GlobalFoundries Gets

Under the terms of the agreement, GlobalFoundries gets primary access to the search from IBMEUs joint collaboration at the Colleges of Nanoscale Science and Engineering, SUNY Polytechnic Institute, in Albany, NY.

GlobalFoundries also gets intellectual property assets, including thousands of patents. In fact, after the deal closes the firm will hold one of the largest semiconductor patent portfolios in the world. The firm also wins semiconductor technical talent to help it develop advanced process geometries at 10nm and below. In addition, it has an open door for business opportunities in industry-leading radio frequency and specialty technologies and ASIC design capabilities.

EUWe can now offer our customers a broader range of differentiated leading-edge 3D...

Comments are closed.