IBM to Shed Semiconductor Business in $1B Deal With Globalfoundries

ITphotoIBM (NYSE: IBM) has agreed to sell its global commercial semiconductor technology business to Santa Clara, California-based computer chip manufacturer Globalfoundries for $1.5 billion, which would be paid to IBM over the next three years.

The companies said Monday that the deal also includes an agreement for Globalfoundries to serve as IBM’s exclusive server processor semiconductor technology provider for 22-, 14- and 10-nanometer semiconductors for the next decade.

IBM will assume a $4.7 billion pre-tax charge for its third fiscal quarter and said the sale is part of its strategy to hone its focus in the fundamental semiconductor research, cloud computing, mobile, big data analytics and secure transaction-optimized systems areas.

In July, the company announced it would spend up to $3 billion on nanoscale chip technology for cloud computing and big data technologies (click over to ExecutiveBiz for our previous coverage).

Globalfoundries will also purchase IBM’s commercial microelectronics business that includes includes ASIC and specialty foundry, manufacturing and related operations and sales.

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