Will GlobalFoundries Inc. or some other manifestation of the oil-rich state of Abu Dhabi, be buying the chip R&D and business interests of IBM any time soon? And what would be the price?
Future Horizons Ltd. (Sevenoaks, England) has said it included the comment "We assume GlobalFoundries will purchase IBMís semiconductor division and that Hynix/Micron will buy up the remaining smaller memory firms," in the conclusions of a report prepared by Future Horizons and Decision SA for the European Commission on the future of 450-mm wafer processing in Europe.
The idea that GlobalFoundries Ė a foundry owned by an Abu Dhabi sovereign wealth vehicle Ė could buy significant chunk of American technology leadership is likely to be controversial.
When asked why he thought the move was a valid assumption, Future Horizons analyst Mike Bryant, said he had heard rumors that discussions are taking place from enough reliable sources to consider the outcome likely.
And the move would make sense in some ways. It is in-line with IBM's strategic retreat away from hardware and towards software and consultancy and GlobalFoundries looks like a natural inheritor of IBM chip interests in New York state.
Indeed IBM's role as the paternalistic overseer of the Common Platform Alliance on process technology, alongside collaborators GlobalFoundries and Samsung Electronics Co. Ltd., looks increasingly anachronistic.
It was over a decade ago that IBM established the model of sharing R&D costs to develop chip technology. IBM is still a manufacturer of chips at East Fishkill, New York, and contributes a great deal of advanced research to various semiconductor-related consortia and initiatives it is involved in. Since it started on the 90-nm node more than a decade ago it has fostered out a number of manufacturing processes and innovations including SOI. It has also been a regular source of presentations at leading conferences such as IEDM.
But IBM does not sell chips on the open market and since it began its semiconductor collaborations it has sold off its PC business to Lenovo, as a key part of its strategic transformation.
So why does IBM need to pay for research into manufacturing processes, extreme ultraviolet lithography, and 450-mm diameter wafers?
I do know that IBM is a foundry supplier of chips. But it is in fact relatively small lying just behind TowerJazz in a 2011 ranking.
As to its role producing processors for games consoles I could argue that is largely historical and will diminish going forward.
IBM will never sell Chip business 100%. It is our National interest. Which country we can trust. These business people can say anything but we have $1T defense budget. Do you think we should sell DoD because it is not profitable? Oracle will not buy Sun. Why Sun? Ask these questions.
Just more idle speculation from poseurs in a country ( ARM included ) with not much skin or credibility in semiconductor technology or business.
For the last 10 years or so IBM's tactic of amortizing its semiconductor R&D expenses by licensing its process technology first to AMD and then newbies like Samsung & the Foundries that cater to ARM licensees has been a pain in the neck for Intel. If IBM was really in the market to cash out of its semiconductor activity and its still considerable R&D and IP goodies then Intel would probably outbid Abu Dhabi to acquire it. Would be more effective than even finFET and the US Govt. would be happy to see IBM technology stay within the US ( Intel still builds its leading Fabs in the US in order to slow down IP theft ).
I agree that such a deal could face too many political hurdles to be viable given the US gov't investments in New York and IBM's military business, but IBM might surprise us and make the rumors come true.
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