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IBM POWER Out

Joel Hruska, Extreme Tech, IBM sells chip business to Global Foundries for $1.5 billion, here. One fewer chip to get competitive Street fp cycles from unless you are hanging with the Ocaml, HFT Erlang, gcc -O2, or Big Decimal Java workers for whom any code runs like it is on a Pentium IV w. 100%  core utilization. Ifn it was good enough for my Pappy, it’s good enough fo me, yesuh!

IBM has confirmed the deal, noting that it will exclusively use GlobalFoundries for “22nm, 14nm, and 10nm semiconductors for the next 10 years.” It also says that its previously announced $3 billion investment in next-gen semiconductors over the next five years won’t be affected by the deal.

The terms of the deal state that GF will continue manufacturing Power processors for IBM for at least the next ten years and that the manufacturing centers in East Fishkill will remain open and fully staffed. Whether or not this translates into no job losses whatsoever isn’t clear, but New York State has aggressively negotiated job deals with IBM in the past and is likely to continue doing so with GlobalFoundries. It’s not clear if IBM is transferring jobs, IP, foundries, and land to GlobalFoundries or if the two manufacturers have worked out a leasing arrangement. GlobalFoundries isn’t just getting the right to build Power processors: it’s also won access to patents on Watson, IBM’s mainframe products, and the expertise of thousands of engineers across New York State.

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