IBM Corp is nearing a deal to sell its chip-making business to contract chipmaker Globalfoundries Inc, Bloomberg reported, citing people familiar with the matter.
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Globalfoundries is interested in acquiring IBM's engineers and intellectual property rather than manufacturing facilities, which have little value as they are more than a decade old, the report said. (http://r.reuters.com/tek99v)
Representatives at IBM and Globalfoundries did not immediately respond to an email seeking comment outside regular U.S. business hours.
Globalfoundries, which has its own plant in New York state and a technology joint development project with IBM, will act as a supplier for IBM's microprocessors, the report said.
The terms of the deal were not available, but according to reports in April, IBM had asked for $2 billion but potential bidders offered more than $1 billion.