Globalfoundries Emerges as Lead Candidate to Buy IBM Chip Plants, Sources Say -- Update

Wall Street Journal ^ | April 3, 2014 | Spencer E. Ante, Dana Cimilluca and Dana Mattioli

[Straight Vermonter]

I'm an almost 20 year employee of one of these plants. There is a LOT of trepidation about what the future holds for us.

[George from New England]

Is GlobalFoundries, Chinese? or Chinese owned?

[BwanaNdege]

Whatever it is, they should make cast iron, bullet-proof chips, right?

/s

(Foundries?)

[Straight Vermonter]

Is GlobalFoundries, Chinese? or Chinese owned?

It's owned by the government of Abu Dhabi.

[RicocheT]

The Chinese already have a major ownership interest in IBM. Red China has been buying premium assets in the west for many years. China has liquidated a lot of those US bonds they had and used the cash to buy good stuff that has value and companies that had great patent collections. When the Japanese had a lot of our dollars, they blew it on golf courses and Hollywood studios and music companies. The Chinese are way better asset buyers.

[Noob1999]

...........There is a LOT of trepidation about what the future holds for us...............

Go out now and buy your headscarf before they run out.

[headstamp 2]

“Semiconductor manufacturing and Steam Boilers”

[W.]

Ran across this, it's old but...Chip plant to hide use of taxpayer funds $650M isn't the $6B lost by gov't, however it came out of our pockets nevertheless!

[ExCTCitizen]

Wondering that myself.

[Straight Vermonter]

Crony capitalism sucks.

[2111USMC]

... moves by the company to reduce its reliance on selling computer hardware.

If they want to get out of selling computer hardware what do they have left? Calculators? Cash registers?

[SunkenCiv]

Sorry to hear that Straight Vermonter.

> As part of the deal, Globalfoundries also wants to secure an agreement to be IBM’s main chip supplier, but IBM has concerns over whether the company can be a reliable supplier...

What’s that say about IBM’s relationship with its current customers?

[Zathras]

The AMD / GF / IBM story is finally coming to an end.
It is a story of over hyped product and under delivery which began with PowerPC and will end with the death of AMD in 2-4 years.

[BwanaNdege]

“Semiconductor manufacturing and Steam Boilers”

It is always good to have a fall-back position, in case the new gig doesn't work out.

You know, "Don't quit your DayJob!"

[Straight Vermonter]

If they want to get out of selling computer hardware what do they have left? Calculators? Cash registers?

Hardware is currently only about 17% of IBM's sales. It has become a software and services company.

[Straight Vermonter]

As part of the deal, Globalfoundries also wants to secure an agreement to be IBM’s main chip supplier, but IBM has concerns over whether the company can be a reliable supplier...

What’s that say about IBM’s relationship with its current customers?

Yeah that sounds odd. I think what they mean to say is that currently the 300mm plant exists primarily to serve IBM's server group. If GF buys the fab there is no way for IBM to ensure that their orders will still be top priority.

[Carry_Okie]

If GF buys the fab there is no way for IBM to ensure that their orders will still be top priority.

That is reality, and there is nothing IBM can do about it if they sell the business. Typical of management-by-spoiled-children, they want it both ways. If they want the cash to do other things, they might as well dump the server business too, or the mainframes, or...

Oh, wait...

[ican'tbelieveit]

Yeah, services was what I was going to say. Kind of a data management specialization - big data.

[winodog]

Better yet buy a Bible

[bert]

That wouls be The United Arab Emirates