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[Hardware360]Global Foundries gets paid to buy IBM chip business

770 views 8 replies 7 participants last post by  jomama22 
#1 ·
Quote:
The inevitable consolidation of semi-conductor manufactures has claimed it's latest victim. Things have to be looking bad for IBM when they're paying for someone to buy their chip business. IBM is set to hand over $1.5 billion to Global Foundries as part of a deal transferring their entire chip business.

With this transfer, IBM will only retain it's chip R&D department. Everything thing else, including their fabs, engineers, and other chip business parts will be transferred to Global Foundries pending regulator review. As part of the deal, IBM is transferring over $1.5 billion to GF in cash and other capital. IBM must be pretty desperate to get rid of the less than profitable division in order to pay a buyer. IBM will also use Global Foundries for the next 10 years till including 10nm.

After this deal, Global Foundries will become much larger and more capable. The firm will also hold the largest semi-conductor patent portfolio due to IBM's prolific patent filings. Combined with the 14nm partnership with Samsung, Global Foundries has the potential to push forward with new process nodes, something AMD desperately needs to maintain competitiveness with Intel. More fabs and more business means more money for expensive R&D.

The one remaining hurdle is regulatory approval. Global Foundries is majority owned by the Abu Dubai government. Given the sensitive nature of some of the chips currently produced by IBM, various governments like the US might object to a foreign government controlling the business. Various super computers running sensitive information also run on IBM POWER designs. It will be interesting to see how governments, competitors and partners react to this news.
Source
http://hardware-360.com/global-foundries-gets-paid-to-buy-ibm-chip-business/
 
#2 ·
Abu Dubai?
wink.gif
 
#7 ·
Quote:
Originally Posted by voklskier4452 View Post

Still curious what this means for the Fab up near me. It is still one of the largest employers in the area and for the most part they are well paying jobs. Would be a real shock to the local economy to lose all of those jobs.
Are you talking down route 9 just a hair south of Poughkeepsie, NY? I forget the town name there. I went to the CIA in Hyde park so I would drive by that fab quite often.
 
#8 ·
Quote:
Originally Posted by jomama22 View Post

Are you talking down route 9 just a hair south of Poughkeepsie, NY? I forget the town name there. I went to the CIA in Hyde park so I would drive by that fab quite often.
No, the Essex Jct Plant in Vermont. I have been reading that GF plans to keep Fishkill and Essex Jct open for the foreseeable future. Lots of people seem to be betting that will mean 3 years because that is the length of time IBM has to pay that $1.5B.
 
#9 ·
Quote:
Originally Posted by voklskier4452 View Post

No, the Essex Jct Plant in Vermont. I have been reading that GF plans to keep Fishkill and Essex Jct open for the foreseeable future. Lots of people seem to be betting that will mean 3 years because that is the length of time IBM has to pay that $1.5B.
Should of guessed that from the username haha. I miss going up to Killington and Stowe during my time up there but after living in Colorado...lol
 
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