IBM has announced plans to pay Globalfoundries $1.5 billion to take over IBM’s global commercial semiconductor technology business, including intellectual property, world-class technologists, and technologies related to IBM Microelectronics. Globalfoundries will also become IBM’s exclusive server processor semiconductor technology provider for 22 nanometer, 14nm, and 10nm semiconductors for the next 10 years.
The agreement, once closed, enables IBM to further focus on semiconductor research and the development of future cloud, mobile, big data analytics, and secure transaction-optimized systems. IBM continues its previously announced $3 billion investment over five years for semiconductor technology research to lead in the next generation of computing. Globalfoundries will have primary access to the research that results from this investment through joint collaboration at the Colleges of Nanoscale Science and Engineering (CNSE), SUNY Polytechnic Institute, in Albany, N.Y.
As part of this agreement, Globalfoundries will gain substantial intellectual property including thousands of patents, making Globalfoundries the holder of one of the largest semiconductor patent portfolios in the world. Additionally, the acquisition opens up business opportunities in industry-leading radio frequency (RF) and specialty technologies and ASIC design capabilities.
“This acquisition solidifies Globalfoundries’ leadership position in semiconductor technology development and manufacturing,” says Dr. Sanjay Jha, CEO of Globalfoundries. “We can now offer our customers a broader range of differentiated leading-edge 3D transistor and RF technologies, and we will also improve our design ecosystem to accelerate time-to-revenue for our customers. This acquisition further strengthens advanced manufacturing in the United States, and builds on established relationships in New York and Vermont.”
“The Agreement expands our longstanding collaboration, which began when Globalfoundries was created in 2009, and reflects our confidence in Globalfoundries’ capability,” said IBM Senior Vice President & Director of Research Dr. John E. Kelly III. “This acquisition enables IBM to focus on fundamental semiconductor and material science research, development capabilities and expertise in high-value systems, with Globalfoundries’ leadership in advanced technology manufacturing at scale and commitment to delivering future semiconductor technologies. We are grateful for the leadership and investments by the states of New York and Vermont in supporting the semiconductor industry.”
Globalfoundries will acquire and operate existing IBM semiconductor manufacturing operations and facilities in East Fishkill, N.Y. and Essex Junction, Vt., adding capacity to serve its customers and thousands of jobs to Globalfoundries’ workforce. Globalfoundries plans to provide employment opportunities for substantially all IBM employees at the two facilities who are part of the transferred businesses, except for a team of semiconductor server group employees who will remain with IBM. After the close of this transaction, Globalfoundries will be the largest semiconductor technology manufacturing employer in the Northeast. The company will also acquire IBM’s commercial microelectronics business, which includes ASIC and specialty foundry, manufacturing and related operations and sales.
Release Date: October 20, 2014