IBM offloads foundering chip business
19 November 2014
News
IBM will no longer manufacture semiconductors as it announced it has sold its Microelectronics business unit to Globalfoundries.
According to IBM, at the heart of its decision to sell is a desire to return to its roots in fundamental semiconductor research, as well as to concentrate on the development of future cloud, mobile, big data analytics and secure transaction-optimised systems. It will continue its previously announced $3 billion investment over five years into semiconductor technology research for the next generation of computing.
IBM will reflect a pre-tax charge of $4,7 billion in its financial results for the third quarter of 2014, which includes an asset impairment, estimated costs to sell the IBM microelectronics business and cash consideration to Globalfoundries. Cash consideration of $1,5 billion is expected to be paid to Globalfoundries by IBM over the next three years, to be adjusted by the amount of working capital which is estimated to be $200 million.
For its part, Globalfoundries will become the holder of one of the largest semiconductor patent portfolios in the world. The intellectual property it inherits will include thousands of patents, over and above the influx of one of the best technical teams in the semiconductor industry. This will solidify the company’s path to advanced process geometries at 10 nm and below.
The agreement also sees Globalfoundries become IBM’s exclusive server processor semiconductor technology provider for 22 nm, 14 nm and 10 nm semiconductors for the next 10 years. It will also gain primary access to the research that results from IBM’s future technology investment, as well as business opportunities in industry-leading radio frequency (RF) and specialty technologies and ASIC design capabilities.
Globalfoundries will acquire and operate existing IBM semiconductor manufacturing operations and facilities in New York and Vermont, and plans to invest approximately $10 billion in its US operations in 2014-2015, the majority of which will go the way of New York.
Further reading:
From the editor's desk: Exciting times ahead?
Technews Publishing
News
There are many subjects that excite me in this world, but two of the larger technical subjects are, firstly, renewable energy, and secondly, the idea of artificial intelligence as it continues to evolve
...
Read more...
Microchip expands partnership with TSMC
News
Microchip Technology has announced it has expanded its partnership with TSMC to enable a specialised 40 nm manufacturing capacity at Japan Advanced Semiconductor Manufacturing.
Read more...
Huge SA grid battery project
News
A standalone battery energy storage system (BESS) has won preferred bidder status under South Africa’s Energy Storage Capacity Independent Power Producer Procurement Programme (ESIPPPP).
Read more...
Mouser sponsors NCP Cup 2024
News
The NXP Cup is an EMEA-based autonomous car competition, presented by NXP Semiconductors, which is designed to provide students with real-world experiences in autonomous vehicle programming and building.
Read more...
TrinaTracker brings its smart solar tracking to SA
News
The Vanguard 1P is designed to provide customers with trackers that combine suitability for flat terrain, together with outstanding system stability and reliability, quick installation, and flexible external compatibility.
Read more...
Nordex adding 830 MW of wind generation
News
Nordex Energy South Africa will be adding 830 MW of wind energy generation capacity to the company’s already-installed 1 GW base.
Read more...
Invertek produces its three millionth drive
iTek Drives
News
Invertek Drives Ltd, a global manufacturer of variable frequency drive (VFD) technology, has celebrated producing its three millionth VFD, just three years after its two-million milestone.
Read more...
Analog Devices’ digital storefront is live
News
Analog Devices has designed an improved digital experience with users in mind – a new analog.com website and eShop.
Read more...
Vicor Powering Innovation podcast
News
The episode explores electrification with Lightning Motorcycles, a company that produces the fastest electric motorcycle on the planet.
Read more...
ModusToolbox Workshop 3
News
This workshop will focus on enabling a PSoC development kit, connected over Wi-Fi and leveraging MQTT, to create the framework of an IoT application.
Read more...
printer friendly version