TMCnet News
United States : GLOBALFOUNDRIES acquiring IBM computer chip making business [TendersInfo (India)](TendersInfo (India) Via Acquire Media NewsEdge) The companies announced on October 20, 2014, GlobalFoundries will acquire IBM's computer chip making business. IBM will pay $1.5 billion to GlobalFoundries for three years, and GlobalFoundries will make computer chips for the Armonk, New York IBM for the next decade. As per the agreement, GlobalFoundries will acquire thousands of IBM patents. A contract chip maker owned by an investment arm of the Abu Dhabi government, GlobalFoundries has been negotiating with GlobalFoundries for months.The companies inked an agreement for GlobalFoundries to take over the IBM's semiconductor business. IBM seeks to unload its chip making business as the firm focuses its attention on data analytics, cloud computing, and its Watson supercomputer business. GlobalFoundries has been working to increase production capacity. The company runs factories in Malta, New York, as well as Germany, Dresden, and Singapore. The chip maker invested around $10 billion expanding and building its Malta factory for the past five years. That firm hired 3,000 workers in New York since 2009. GlobalFoundries intends to invest around $10 billion in capital enhancements in 2014-2015, the majority of those investments will be in New York. GlobalFoundries and IBM had close ties since GlobalFoundries started production at its factory in New York two years ago. Over 100 IBM workers have been working at GlobalFoundries' Malta factory for the past several months. (c) 2014 Euclid Infotech Pvt. Ltd. Provided by SyndiGate Media Inc. (Syndigate.info). |