IBM Corp has announced plans to sell its loss-making semiconductor unit to Globalfoundries, a wholly-owned subsidiary of Abu Dhabi’s Mubadala Development, Reuters reported, adding that IBM has conducted this sale so as to focus on cloud computing, data analysis and mobile services.
The two firms announced on Monday, in statements to the news agency, that Globalfoundries will pay $1.5 billion in cash over the coming three years to IBM to acquire the chip-manufacturer.
IBM has taken a related pre-tax charge of $4.7 billion in its third quarter, Reuters reported, highlighting that the computer giant reported a four percent revenue decline on Monday, owing to weak sales in its software and services businesses.
Globalfoundries has said that it will acquire IBM’s manufacturing activities in New York and Vermont and will provide job opportunities to all IBM employees affected by the transaction.
The two firms announced on Monday, in statements to the news agency, that Globalfoundries will pay $1.5 billion in cash over the coming three years to IBM to acquire the chip-manufacturer.
IBM has taken a related pre-tax charge of $4.7 billion in its third quarter, Reuters reported, highlighting that the computer giant reported a four percent revenue decline on Monday, owing to weak sales in its software and services businesses.
Globalfoundries has said that it will acquire IBM’s manufacturing activities in New York and Vermont and will provide job opportunities to all IBM employees affected by the transaction.
Source:
Mubasher
