June 10 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. (r.reuters.com/tek99v)
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