GlobalFoundries fails to agree IBM chip deal

Deal to buy IBM's semiconductor division falls through

Tags: GLOBALFOUNDRIES IncorporationIBM (www.ibm.com)Mergers and acquisitionsSemiconductors
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GlobalFoundries fails to agree IBM chip deal IBM will not sell its chip division to GlobalFoundries.
By  Mark Sutton Published  July 27, 2014

Discussions between Abu Dhabi's GlobalFoundries and IBM over the potential sale of IBM's semiconductor division have failed to reach a successful conclusion, according to Bloomberg.

IBM had been in talks to sell its semiconductor business to GlobalFoundries, but it is understood that GlobalFoundries bid was rejected as too low.

GlobalFoundries produces chips for IBM at its Fab 8 facility in upstate New York and IBM had hoped to offload its semiconductor division to the company, which was formed through the spin off of AMD's chip production business.

Sources close to the deal said that GlobalFoundries was interested in acquiring IBM's patents and engineers, but placed no value on the actual manufacturing facilities.

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