Menu
Reports: IBM explores sale of semiconductor business

Reports: IBM explores sale of semiconductor business

The company is said to be mulling a semiconductor joint venture as an alternative

IBM is exploring the sale of its semiconductor unit shortly after agreeing to sell its low-end server business to Lenovo Group, according to newspaper reports.

The company is said to have appointed investment bank, Goldman Sachs, to sound out potential buyers, but could also seek to set up a semiconductor joint venture, The Financial Times reported.

The semiconductor business is described as the company's most technology intensive, and contributes technologies for some key initiatives including the Watson cognitive computing system and high-end servers.

IBM plans to retain its chip-design capabilities while selling the manufacturing operation, The Wall Street Journal reported.

The company said in January it had entered into an agreement to sell its x86 server hardware business and related maintenance services business to Lenovo for $US2.3 billion. The company is also reported to have approached other vendors to check their interest in acquiring its software defined networking business.

IBM could not be immediately reached for comment on the reports on its plans for the semiconductor business.

Besides designing chips based on the Power Architecture for use in its own systems, IBM Microelectronics offers design and foundry services, through which it manufactures chips around Power for other companies. It licensed in October a range of ARM Cortex processors from ARM Holdings to be used in custom chips for networking and communications.

In the fourth quarter of 2013, revenue from IBM's microelectronics business with third parties decreased by 33 percent compared to the same period in the previous year.

Subscribe here for up-to-date channel news

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags business issuesIBMComponentsrestructuring

Featured

Slideshows

StorageCraft celebrates high achievers at its inaugural A/NZ Partner Awards

StorageCraft celebrates high achievers at its inaugural A/NZ Partner Awards

Revealed at a glitzy bash in Sydney at the Ivy Penthouse, the first StorageCraft Partner Awards locally saw the vendor honour its top-performing partners with ASI Solutions, SMBiT Pro, Webroot, ACA Pacific and Soft Solutions New Zealand taking home the top awards. Photos by Maria Stefina.

StorageCraft celebrates high achievers at its inaugural A/NZ Partner Awards
Kiwi resellers make a splash on Synnex and Lenovo RotoVegas road trip

Kiwi resellers make a splash on Synnex and Lenovo RotoVegas road trip

​Synnex and Lenovo hosted 18 resellers for an action-packed weekend adventure in RotoVegas, taking in white water rafting on the Kaituna River, as well as quad biking and dinner at Stratosfare​, overlooking Lake Rotorua at the top of Mount Ngongotaha​. Photos by Synnex.

Kiwi resellers make a splash on Synnex and Lenovo RotoVegas road trip
Show Comments