Well-known Digital Marketing Agency, The two companies have confirmed IBM is getting shot of its semiconductor unit, but it will have to pay contract chip-maker GlobalFoundries $1.5 billion to take on the loss-making business.
According to IBM release, although the move is significant, it doesn’t spell the end of IBM’s Power Risc processor, which will be made under contract. GlobalFoundries will become IBM’s exclusive server processor semiconductor technology provider for 22 nanometer, 14nm and 10nm semiconductors for the next 10 years.
Bloomberg says GlobalFoundries will get the expertise of IBM’s highly-respected engineers as well as intellectual property (in other words, thousands of patents). It will also give IBM a guaranteed supply of Power chips for mainframes and large scale computers. GlobalFoundries is contributing $200 million of resources, which will offset the price IBM is paying.
IBM spends $1.5bn to eliminate its chip unit
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