ARMONK, N.Y. and SANTA CLARA, Calif., Oct. 20, 2014 /PRNewswire/ -- IBM (NYSE:
IBM) and GLOBALFOUNDRIES today announced that they have signed a
Definitive Agreement under which GLOBALFOUNDRIES plans to acquire
IBM's global commercial semiconductor technology business,
including intellectual property, world-class technologists and
technologies related to IBM Microelectronics, subject to completion
of applicable regulatory reviews. GLOBALFOUNDRIES will also
become IBM's exclusive server processor semiconductor technology
provider for 22 nanometer (nm), 14nm and 10nm semiconductors for
the next 10 years.
The Agreement, once closed, enables IBM to further focus on
fundamental 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. GLOBALFOUNDRIES also will benefit
from an influx of one of the best technical teams in the
semiconductor industry, which will solidify its path to advanced
process geometries at 10nm and below. 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," said Dr. Sanjay Jha,
CEO, 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."
This acquisition bolsters semiconductor manufacturing and
technology development in the United States. GLOBALFOUNDRIES
has robust capital expenditure plans of approximately $10 billion in 2014-2015, with the majority being
invested in New York.
GLOBALFOUNDRIES has created nearly 3,000 direct jobs in
New York and thousands more
indirect jobs in the United States
since 2009.
GLOBALFOUNDRIES will acquire and operate existing IBM
semiconductor manufacturing operations and facilities in
East Fishkill, New York and
Essex Junction, Vermont, 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.
GLOBALFOUNDRIES will also acquire IBM's commercial
microelectronics business, which includes ASIC and specialty
foundry, manufacturing and related operations and sales.
GLOBALFOUNDRIES plans to invest to grow these businesses.
IBM will reflect a pre-tax charge of $4.7
billion in its financial results for the third quarter of
2014, which includes an asset impairment, estimated costs to sell
the IBM microelectronics business, and cash consideration to
GLOBALFOUNDRIES. Cash consideration of $1.5
billion is expected to be paid to GLOBALFOUNDRIES by IBM
over the next three years. The cash consideration will be adjusted
by the amount of working capital which is estimated to be
$200 million.
The transaction is subject to the satisfaction of regulatory
requirements and customary closing conditions.
About GLOBALFOUNDRIES
GLOBALFOUNDRIES is the world's
first full-service semiconductor foundry with a truly global
footprint. Launched in March 2009,
the company has quickly achieved scale as the second largest
foundry in the world, providing a unique combination of advanced
technology and manufacturing to more than 160 customers. With
operations in Singapore,
Germany and the United States, GLOBALFOUNDRIES is the only
foundry that offers the flexibility and security of manufacturing
centers spanning three continents. The company's three 300mm fabs
and five 200mm fabs provide the full range of process technologies
from mainstream to the leading edge. This global manufacturing
footprint is supported by major facilities for research,
development and design enablement located near hubs of
semiconductor activity in the United
States, Europe and
Asia. GLOBALFOUNDRIES is owned by
the Mubadala Development Company. For more information, visit
http://www.globalfoundries.com.
About IBM
For more information on IBM, visit
http://www.ibm.com
IBM press
contacts:
|
GLOBALFOUNDRIES
press contacts:
|
Jeff Cross
|
Jason
Gorss
|
+1 (914)
766-4166
|
+1 (518)
698-7765
|
jrcross@us.ibm.com
|
Jason.gorss@globalfoundries.com
|
|
|
Chris
Andrews
|
Travis
Bullard
|
+1 (914)
499-4045
|
+1 (518)
491-7658
|
candrews@us.ibm.com
|
travis.bullard@globalfoundries.com
|
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SOURCE IBM