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IBM close to selling chip-making unit to Globalfoundries: report

Published on Jun 11, 2014 11:59 AM
This picture shows IBM Japan headquarters in Tokyo on May 9, 2014. -- PHOTO: AFP 

(Reuters) - IBM Corp is nearing a deal to sell its chip-making business to contract chipmaker Globalfoundries Inc, Bloomberg reported, citing people familiar with the matter.

Globalfoundries is interested in acquiring IBM's engineers and intellectual property rather than manufacturing facilities, which have little value as they are more than a decade old, the report said.

Representatives at IBM and Globalfoundries did not immediately respond to an email seeking comment outside regular United States business hours.

Globalfoundries, which has its own plant in New York state and a technology joint development project with IBM, will act as a supplier for IBM's microprocessors, the report said.

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