IBM Pays Chip Manufacturer GlobalFoundries $1.5 Billion To Get Rid Of Its Chip Division

IBM Pays Chip Manufacturer GlobalFoundries $1.5 Billion To Get Rid Of Its Chip Division (Ping! Zine Web Tech Magazine) – IBM is finally getting rid of its costly chip division, as chip manufacturer GlobalFoundries has agreed to take the unit off IBM’s hands.

According to Bloomberg, IBM will pay $1.5 billion in cash to GlobalFoundries over the next three years, as well a $4.7 billion pre-tax charge for this year’s third quarter.

Also included in the deal is that IBM will become GlobalFoundries exclusive processor provider for the next 10 years, while GlobalFoundries will have access to IBM semiconductor patents and its operations in New York and Vermont.

IBM noted on its blog that selling their chip division will allow the company to focus on “the Power architecture, mainframe and storage systems, where it will apply IBMs vaunted research and development capabilities to differentiate its offerings,” in areas such as Big Data and cloud services.

This deal is slate to close in 2015.

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