IBM wants to sell chip business will be the biggest strategic adjustment for 20 years

IBM is currently considering selling its chip business, the source said in Wednesday, which will be the company's most significant strategic move since IBM's financial crisis in the early 90. Two weeks ago, IBM had just agreed to price 2.3 billion of dollars to sell low-end server business to Lenovo. It is reported that IBM has hired investment bank Goldman Sachs, for its chip business to find potential buyers. The news also said that IBM has not yet decided whether to sell the chip business, the future may seek a partner to form a joint venture to expand the chip business. It is unclear how much IBM is valuing its chip business. Patrick Moorhead, president and chief analyst at Moor Insights & strategy, said the sale of the chip business would keep IBM away from the traditional business. This is perhaps the most significant strategic adjustment of the company over the past 20 years. But unlike IBM, which has sold low-end server business and other businesses in recent years, the chip manufacturing business is one of IBM's technology-intensive businesses. IBM is currently one of the few companies in the world that spends billions of of billions of dollars a year on cutting-edge chip technology. Some market analysts even believe that IBM has some chip technology even better than rival Intel. Moorehead that buyers of IBM's chip business could include global foundries and TSMC. With the exception of Intel and Samsung Electronics, the two companies will be the only ones able to invest billions of dollars in building a new generation of chip manufacturing plants. IBM has surprised some market analysts with the spin-off of its chip business, as it sees the most powerful chips in IBM's IT systems, allowing IBM to take the lead in developing state-of-the-art computing applications, such as Watson's question and answer system. ' I would be shocked if Watson's question and answer system no longer has IBM's power chip, ' said Rick Doherty, a evisioneering analyst in New York Rick Dorti. Without the chip business, IBM will no longer be a technology giant, ten years from now. The analyst also said that IBM's vast majority of patented technology is related to the chip business. While huge sums of money are invested each year in the advanced technology needed for chips, the business is becoming less important to the company as it continues to expand in recent years to the software and services sectors. Doherty believes that any idea of stripping or forming a joint venture must ensure that IBM is still able to access the advanced chip manufacturing plant, providing chips for the company's most advanced applications. So far, IBM has not commented on the report.