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.

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.