IBM close to selling chip-making unit to Globalfoundries-Bloomberg

June 10 Tue Jun 10, 2014 11:46pm EDT

June 10 (Reuters) - IBM Corp is nearing a deal to sell its chip-making business to contract chipmaker Globalfoundries Inc, Bloomberg reported, citing people familiar with the matter.

Globalfoundries is interested in acquiring IBM's engineers and intellectual property rather than manufacturing facilities, which have little value as they are more than a decade old, the report said. (

Representatives at IBM and Globalfoundries did not immediately respond to an email seeking comment outside regular U.S. business hours.

Globalfoundries, which has its own plant in New York state and a technology joint development project with IBM, will act as a supplier for IBM's microprocessors, the report said.

The terms of the deal were not available, but according to reports in April, IBM had asked for $2 billion but potential bidders offered more than $1 billion. (Reporting by Supriya Kurane in Bangalore; Editing by Gopakumar Warrier)

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

Find your dream retirement town

Florida? Hawaii? Reuters has teamed up with Zillow to give you the power to customize a list of your best places to retire.  Video | Full Article