IBM became the shopkeeper and pasted it for $1.5 billion to sell its chip manufacturing business.

Big Data Online Report: According to the latest news from Reuters, IBM officially announced today that it would sell its chip manufacturing business to globalfoundries, a chip foundry enterprise, for $1.5 billion, IBM will also obtain assets worth $0.2 billion. After several months of negotiations, IBM finally switched its long-lost chip manufacturing business to globalfoundries, another important business that IBM sold after the sale of the X86 server product line.

Globalfoundries access disk

At the beginning of this year, IBM began looking for buyers of its chip manufacturing business. According to informed sources, the IBM chip business has been at a loss, accounting for less than 2% of IBM's total revenue, and the annual loss is about 1.5 billion US dollars, IBM was looking for buyers as early as 2013.

The claim for the IBM chip manufacturing business involves a number of chip foundry enterprises, such as TSMC and gobalfoundries. gobalfoundries negotiated with IBM several months and finally reached an acquisition agreement. It is reported that IBM will pay $1.5 billion in cash to globalfoundries in the next three years, globalfoundries will become the exclusive supplier of IBM's 22nm, 14nm, and 10nm power server processors and semiconductor technology in the next 10 years.

Gobalfoundries is controlled by Abu Dhabi sovereign investment corporation from the Middle East, but its operation and management are the responsibility of the US Team and the Singapore team.

Because IBM's chip manufacturing plants are too old, globaofoundries has a greater significance through this acquisition of Talent Resources in semiconductor design and manufacturing and IBM's future chip orders. IBM will not give up its investment in the semiconductor field. IBM said it plans to invest $3 billion in the semiconductor field in the next five years.

Why is IBM a manager for achieving performance goals?

In recent years, IBM has been trying to strip losses from its business. Previously, it has successfully sold its X86 server business to Lenovo. Now, switching its chip manufacturing business will help further improve IBM's short-term financial performance, in order to achieve the performance target for 2015, IBM has declined revenue for nine consecutive quarters.

Zhang qunying, founder and senior IT commentator of toutiao technology, told Big Data Online: "IBM is very clear that the trend of smaller and smaller chip shipments will lead to an" accident "when the chip production line is retained '. On the one hand, IBM is desperately trying to reduce costs for Wall Street's 2015 performance commitment, and on the other hand, it is in the need to re-lay the hardware business ."

The semiconductor industry is capital-and technology-intensive. The model for controlling the entire industrial chain needs to bear huge investment costs. Some companies have begun to move to the upstream of the chip industry chain. "Chips are a game that burns money, and from this perspective they are no longer suitable for IBM. Currently, global chip manufacturing plants are operating very hard '. For example, Intel may even produce chips for its rival AMD ." Zhang qunying added.

Another senior person in the industry said that the sale of IBM chip manufacturing business in the short term to improve IBM performance; in the long term, IBM's loss of its chip manufacturing business may not be as powerful as it was before. According to the agreement, gobalfoundries will become IBM's exclusive provider of server processor chips and semiconductor technology in the next 10 years. "IBM will focus and invest in chip design in the future. However, it is also difficult to completely cut the chip design from the cooperation with the manufacturing plant, because some chips are closely related to the production line. A good chip design requires excellent foundry enterprises to ensure the chip production capacity through advanced production lines and efficient operation. Otherwise, it will be difficult to control the chip in the future ." This person said.

For IBM, the chip manufacturing business with a small revenue share can only be regarded as one of the basic business of IBM, and it is difficult to compete with chip manufacturers such as inte and arm, due to pressure from Wall Street, it is inevitable to strip the loss-making business as soon as possible. It's no wonder that Warren Buffett, IBM investor and shareholder, recently commented on IBM in Forbes Magazine: "They really, they really are thinking about theshareholder ." Therefore, this acquisition can be seen as a balance between IBM's industrial chain control and cost control. But who knows what will happen in the next decade? [Original article link]

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IBM became the shopkeeper and pasted it for $1.5 billion to sell its chip manufacturing business.