IBM's Talks With Globalfoundries Reportedly Fall Apart

(RTTNews) - International Business Machines Corp.'s (IBM) talks to sell its money losing chip-manufacturing business to Globalfoundries Inc. have ended after the two companies failed to agree on terms, Bloomberg reported Friday, citing people familiar with the process.

Globalfoundries made an offer that was rejected by IBM as too low, Bloomberg quoted the people as saying.

Globalfoundries, created in a spinoff of Advanced Micro Devices Inc.'s production facilities in 2009, is owned by an investment arm of the government of Abu Dhabi.

IBM said earleir this month that it will invest $3 billion over the next 5 years in two broad research and early stage development programs to push the limits of chip technology needed to meet the emerging demands of cloud computing and Big Data systems.

The investments will push IBM's semiconductor innovations from today's breakthroughs into the advanced technology leadership required for the future, the company said.