IBM Contracts Company to Take Chip Unit

IBM reported that they will be getting out of the chip making business in order to give more attention to cloud computing and big data analytics.

The company will pay Globalfoundries $1.5 million over the next three years to take control of chip operations.

“They need to narrow their focus, get their A-game on, and any distractions from a core business perspective, such as this deal, need to be put in the rear-view mirror,” FBR Capital Markets analyst Daniel Ives told Reuters.

This is not the first notion of IBM reducing its presence in the hardware industry. Earlier this month, the company sold its x86 server business to Lenovo Group Ltd. For $2.1 billion.

This from Reuters:

Globalfoundries Chief Executive Sanjay Jha said the company would invest $10 billion between 2014 and 2015 to develop 10 nanometer, 14 nanometer and radio-frequency technologies.

Read the full article here.

What does the future hold for IBM? Connect with us to join us in the discussion.

DISCLAIMER

All content provided in the ECS Redcat blog is for informational purposes only. The opinions and interests expressed here do not necessarily represent ECS's positions or views. ECS makes no representation or warranties about this blog or the accuracy or reliability of the blog. In addition, a link to an outside blog or website does not mean that ECS endorses that blog or website or has responsibility for its content or use.

Post Comments

Your email address will not be published. Required fields are marked *