IBM Latest News, Updates: Company to Pay $1.5 Billion to Hive for its Loss-Making Semi-Conductor/Chip Division

IBM Latest News, Updates: Company to pay $1.5 billion to Hive for its loss-making Semi-Conductor/Chip Division

Famous business corporation IBM has alleged to a decision to count $1.5 billion for the loss-making semiconductor unit. The International Business Machines Corporation will pay that money to Globalfounaries Inc. as both the companies are counting their losses over the semi-conductor unit. The two companies have individually accepted the terms with an announcement.

The organization will declare the transactions today with an event. Through the agreement, IBM will capture total assets worth $200 million where the net estimation of the transaction contract deals with $1.3 billion. On Sunday, IBM mentioned about the transaction that will take place today according to Reuters.

The chip-making unit has been unprofitable for IBM for quite long. The sale margin failed to bring satisfactory revenue and merged with downward slope. The Glaobalfoundaries is governed by Abu Dhabi govt. investment. The company has also agreed to go for the transaction to tap the process of IBM semiconductor designing and manufacturing skill.

The contract will be carried for 10 years where IBM will be provided Power processors service from Globalfoudaries. In exchange, Globalfoundaries will get the access to IBM's intrapersonal intelligence. Both the company believes that this joint corporation helps to reach the mainframe of manufacturing process and designing of the processors. Globalfoundaries has assured that they will provide the best possible chips for IBM according to the company requirement.

IBM also mentioned in their statement yesterday that the company would present the third quarter regulations today at 7am. The company will pay $1.5 billion within next three consecutive years.

IBM has already collaborated up with the Globalfoundaries for the chip production technology where the previous agreement was with Advanced Micro Devices Inc. IBM company was searching for proper individual to handover its chipmaking sector from 2013.

However, the company will hand off the chip making division but the intellectual and skill engineers of IBM will continue to research on the development of the chips. Moreover the company has a plan to invest over $3 billion on innovative semiconductor based research and development as mentioned in the Industry Leaders Magazine.

Tags : IBM news IBM updates IBM to pay $1.5 billion IBM Latest News Updates: Company to pay $1.5 billion to Hive IBM semi-conductor IBM chip news IBM chip loss making unit IBM semi-conductor news