IBM Corp. has rejected an offer from Globalfoundries Inc. to buy its microchip-manufacturing arm, according to a report from Bloomberg.
Armonk-based IBM has been losing money in its microchip manufacturing sector, according to Forbes, and California-based Globalfoundries”™ offer apparently did not highly value the company”™s factories in New York and elsewhere. Globalfoundries was seeking IBM”™s intellectual properties, the report said.
It was unclear what the deal would have meant for the East Fishkill and Vermont manufacturing plants if Globalfoundries purchased them, according to a report by The Poughkeepsie Journal. The report said the deal would likely have meant selling the company”™s manufacturing real estate at below IBM”™s asking price.
Neither side has confirmed there had been a deal on the table and therefore neither has issued comment on the collapse of negotiations. IBM has reportedly been trying to scale down its manufacturing side, although it recently announced it would invest $3 billion in developing stronger ”“ and smaller ”“ semiconductor chips.
