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Bloomberg: IBM close to selling chip unit to Globalfoundries

  • Bloomberg's report follows an April WSJ report calling Globalfoundries "the lead candidate" to buy IBM's (IBM -0.6%) chip manufacturing/foundry ops. Notably, Globalfoundries is said to be more interested in Big Blue's chip engineers and IP than its relatively old wafer fabs.
  • A source states the unit has been losing as much as $1.5B/year. Its Q1 sales fell 16% Y/Y amid continued share losses to Globalfoundries, Samsung, and foundry giant TSMC (TSM -0.5%).
  • Nonetheless, the business claims high-profile foundry clients such as Cisco and Juniper, and has a history of leading the way in mass-producing new chip technologies/materials, such as silicon-on-insulator (SOI) and silicon germanium (SiGe).
  • That could help Globalfoundries as it tries to gain ground against TSMC, which has a long list of blue-chip mobile processor, GPU, and FPGA clients.
  • The WSJ's report stated the unit has received $1B+ bids - less than the $2B+ IBM was initially seeking.
Comments (10)
  • Momintn
    , contributor
    Comments (3855) | Send Message
     
    I don't even believe Bloomberg any more. This news about IBM selling to Globalfoundries is very old. And every time they say it is close.
    11 Jun, 11:51 AM Reply Like
  • Momintn
    , contributor
    Comments (3855) | Send Message
     
    Do some google searches:

     

    There is this website called rsspump.com and on various companies' stocks they are pumping like lenovo and whatsapp you can see:
    Jun 13, 2013 - IBM close to selling chip-making unit to Globalfoundries-Bloomberg ..... s sale of its low-end server unit to Lenovo will benefit both companies when the deal is ...
    Jul 10, 2013 - IBM close to selling chip-making unit to Globalfoundries-Bloomberg

     

    Yes that is news in 2013.
    11 Jun, 12:23 PM Reply Like
  • SA Editor Eric Jhonsa
    , contributor
    Comments (764) | Send Message
     
    There weren't any reports of a planned sale last year, though (as noted) the WSJ did have reports out earlier this year about the business being on the block. Bloomberg's report is new.
    11 Jun, 12:40 PM Reply Like
  • Bouchart
    , contributor
    Comments (763) | Send Message
     
    SA editors,

     

    You might save yourself a lot of time and effort if you just report on the products and departments that IBM doesn't want to sell off.
    11 Jun, 12:33 PM Reply Like
  • David at Imperial Beach
    , contributor
    Comments (3660) | Send Message
     
    Meanwhile, in other news (HPQ) was said to be on the verge of a breakthrough in optical quantum computing. Here's the original HP story from Oct 2005: http://bit.ly/1kP02X4

     

    Frankly, I would have expected to hear of such a breakthrough from (IBM). If I believed HP could pull off such a feat without shooting themselves in the foot, this nine year old "news" would make me want to buy HP.
    11 Jun, 12:47 PM Reply Like
  • adkinsight
    , contributor
    Comments (8) | Send Message
     
    Amazing that the whole unit will be had for "pennies on the dollar" for what IBM originally spent to build and equip these sites. One wonders just how little the BTV site would fetch if they broke it out, given the age of the site and it's outmoded operation (except for the mask house).
    11 Jun, 01:09 PM Reply Like
  • chrisgar
    , contributor
    Comments (48) | Send Message
     
    The Burlington site is the one rolling out these new technologies for mobile products.

     

    http://bit.ly/SA4SvG
    11 Jun, 04:38 PM Reply Like
  • adkinsight
    , contributor
    Comments (8) | Send Message
     
    BTV has an old 8" wafer MFG line with tooling from yesteryear right? Remember, I'm not talking about the mask house, but I am talking about the fabricators.
    12 Jun, 09:54 AM Reply Like
  • chrisgar
    , contributor
    Comments (48) | Send Message
     
    Did you check the link ?

     

    The announcement has nothing to do with the mask house. It is related to chips made for mobile cellphones made in the Burlington 200mm fab.

     

    13 Jun, 11:57 PM Reply Like
  • adkinsight
    , contributor
    Comments (8) | Send Message
     
    What are you missing? The vast majority of manufacturing space in BTV is devoted to chip MFG and employees directly related to it. New chip designs can be manufactured anywhere... providing the fabs are advanced enough to handle the design. The more advanced the fab is, the more lucrative the chip production can be. Again, BTV is an old (real old) fab with a lot of outmoded tooling. Would you respond intelligently to that statement please?
    15 Jun, 10:11 AM Reply Like
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