IBM looking to sell semiconductor business, reports say
The company is also mulling a semiconductor joint venture as an alternative
IDG News Service - IBM is exploring the sale of its semiconductor unit shortly after agreeing to sell its low-end server business to Lenovo Group, according to newspaper reports.
The company is said to have appointed investment bank Goldman Sachs to sound out potential buyers, but could also seek to set up a semiconductor joint venture, The Financial Times reported.
The semiconductor business is described as the company's most technology intensive, and contributes technologies for some key initiatives including the Watson cognitive computing system and high-end servers.
IBM plans to retain its chip-design capabilities while selling the manufacturing operation, The Wall Street Journal reported.
The company said in January it had entered into an agreement to sell its x86 server hardware business and related maintenance services business to Lenovo for $2.3 billion. The company is also reported to have approached other vendors to check their interest in acquiring its software defined networking business.
IBM could not be immediately reached for comment on the reports on its plans for the semiconductor business.
Besides designing chips based on the Power Architecture for use in its own systems, IBM Microelectronics offers design and foundry services, through which it manufactures chips around Power for other companies. It licensed in October a range of ARM Cortex processors from ARM Holdings to be used in custom chips for networking and communications.
In the fourth quarter of 2013, revenue from IBM's microelectronics business with third parties decreased by 33% compared to the same period in the previous year.
- Path Selection Infographic Path Selection Infographic
- Hyperconvergence Infographic A wide range of observers agree that data centers are now entering an era of "hyperconvergence" that will raise network traffic levels faster...
- Preparing Your Infrastructure for the Hyperconvergence Era From cloud computing and virtualization to mobility and unified communications, an array of innovative technologies is transforming today's data centers.
- How WAN Optimization Helps Enterprises Reduce Costs If you wanted to break down innovation into a tidy equation, it might go something like this: Technology + Connectivity = Productivity. Productivity...
- Redefine Your IT Operations: Remote Office IT Has Never Been Simpler Join us to see why PC Pro named Dell PowerEdge VRTX the "2013 Server of the Year." PowerEdge VRTX may be just what...
- Cloud Knowledge Vault Learn how your organization can benefit from the scalability, flexibility, and performance that the cloud offers through the short videos and other resources... All Hardware White Papers | Webcasts
Our new weekly Consumerization of IT newsletter covers a wide range of trends including BYOD, smartphones, tablets, MDM, cloud, social and what it all means for IT. Subscribe now and stay up to date!