GloFo gets a Big Blue boost

IBM logoAs we reported yesterday, IBM has sold off its semiconductor business giving Global Foundries (GloFo) a considerable leg up in the foundry business.

IBM spelled out the details saying that GloFo will get its intellectual property, technology and technologists formerly part of Big Blue’s IBM Microelectronics business.

GloFo also gets some business from the deal because it will act as its exclusive server processor provider for 22 nanometre, 14 nanometre and 10 nanometre processes in a 10 year deal.

IBM was eager to say that despite it disposing of its Microelectronics division, it will still work on semiconductor research. And as part of this commitment, IBM will continue to invest $3 billion over the next five years in semiconductor technology research.

GloFo will get primary access to the research through the investment, will get thousands of patents and other benefits including technology related to advanced geometries at 10 nanometres and below.

Dr Sanjay Jha, CEO of GloFo, this gives his company leadership in the semiconductor business.  “This acquisition further strengthens advanced manufacturing in the US and builts on established relationships in New York and Vermont,” he said.

IBM will take a charge of $4.7 billion in its third quarter financial results because of the acquisition. Most former employees of IBM Microelectronics will keep their jobs.