New York, NY, United States (4E) – International Business Machines Corp.’s discussions with Globalfoundries Inc. to sell its struggling chip-manufacturing business have fallen apart after both companies did not agree on terms, according to a Bloomberg report on Friday, citing people with knowledge of the talks.
IBM rejected Globalfoundries’ offer saying that it was too low, according to the sources.
Globalfoundries, formed from a 2009 spinoff of Advanced Micro Devices Inc.’s production facilities, is owned the government of Abu Dhabi’s investment arm.
Earlier this month, IBM said that it will invest $3bn over the next five-year period in two research and development programs aimed to make chip technology that will meet demands from cloud computing and Big Data systems.
The investments will make IBM’s innovations in semiconductors as advanced technology required for the future, the company said.