Thursday, 25 September 2014

IBM & Global Foundries – Has a decision been made?

 Way back in May it was announced that IBM were considering selling their semiconductor sector. Global Foundries were the leading buyer (though buyer is an interesting term as IBM are actually offering inducement money to get it off their hands) and that was that. Now, after some bargaining and bartering, it looks as though the deal is finally going ahead.

While no official announcement has been made, Daniel Nenni leading industry writer and consultant, has written an article on Semiwiki.com stating that the deal is all but complete. Initial negotiations broke down due to money issues with IBM offering $1bn but Global Foundries holding out for $2bn. Looks like Global Foundries got their own way as Nenni states:

“In most negotiations there is a point where you just stare at each other and the first one to blink loses. IBM definitely blinked because the final number that was mentioned to me is in excess of $2B.”

It has been an interesting tale, with the two companies being on and off more times than Ross and Rachel! Now it looks as if an agreement has been reached, what does this mean to the rest of the industry? IBM has stated that it will not leave the semiconductor business completely. (Just last month the company pledged $3billion on developing computer chip innovations at SUNY Polytechnic Institute.) and Global Foundries are constantly growing and evolving.

Hopefully the technical expertise IBM will be able to give to Global Foundries will help the company rise up and become a legitimate competitor to other, larger manufacturers and help keep the industry growing and competitive.

No matter what happens, Cyclops Electronics will keep up to date and make sure we have all parts and components you need, from all major manufacturers. See for yourself using our Fast Component Search tool! 



(Sources: SemiWiki & Times Union)

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