IBM to PAY GlobalFoundries to take chip fab unit

Rometty: Chips on her shoulder.


IBM is reportedly putting up its chip fabs on the market, paying GlobalFoundries to take the money loser off its hands. Bloggers are astounded, shocked, and -- as always -- opinionated as ever.

In IT Blogwatch, bloggers ask for fish.

Filling in for our humble blogwatcher Richi Jennings, is a humbler Stephen Glasskeys.

Marc Ferranti boosts, transfers, finalizes and deals:

Under pressure to boost margins, IBM is set to make what it calls a "major business announcement" Monday morning, an indication that it has finalized a deal to transfer chip-making operations to GlobalFoundries.

IBM CEO Ginni Rometty is looking for ways to increase margins as revenue growth slows while it transitions to new technology and services offerings.  MORE

No spect-ulation by Joseph Spector on existing commitments: [Ahem - Ed.]

All prior job commitments between New York and IBM will be preserved in the company's sale of its chip manufacturing to GlobalFoundries, [said] a state source with knowledge of the deal.  MORE

Things get complicated, advises Kevin Fitchard:

IBM has a complicated relationship with the semiconductor business. The company is still very much invested in silicon R&D...but its commercial chip operations runs a huge loss. ... [Selling] off chip fabrication capabilities does not mean that IBM is out of the chip design business.  MORE

Speaking of complicated, Alex Barinka and Ian King delve further:

IBM will also receive $200 million worth of assets, making the net [deal] value...$1.3 billion, said the people who asked not to be identified.

In a 10-year partnership, Globalfoundries will supply IBM with Power processors in exchange for access to IBM's intellectual property. That would allow Globalfoundries to access key chipmaking technology and guarantee [the chips] IBM needs for its systems, like mainframe computers and its Watson data-analytics technology.  MORE

Tom Gara speaks in colorful metaphors:

You know a business is ***** when you have to pay $1.5 billion to a company owned by Abu Dhabi to *take it from you*  MORE

Meanwhile, Ian Kar seeks lulz:

lolz wait is IBM really PAYING to get rid of an asset? how toxic is IBM’s chip division!?  MORE


You have been reading IT Blogwatch by Richi Jennings and Stephen Glasskeys, who curate the best bloggy bits, finest forums, and weirdest websites… so you don't have to. Catch the key commentary from around the Web every morning. Hatemail may be directed to @RiCHi or Opinions expressed may not represent those of Computerworld. Ask your doctor before reading. Your mileage may vary. E&OE.

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