ibm reports quarterly profit plunge on disposal of chip unit
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

IBM reports quarterly profit plunge on disposal of chip unit

Arab Today, arab today

Arab Today, arab today IBM reports quarterly profit plunge on disposal of chip unit

IBM reported
New York - AFP

IBM reported a collapse of its third-quarter profits Monday because of the $4.7 billion cost of offloading its micro-chip business to GlobalFoundries.
The computer services giant said that it was paying $1.5 billion in cash to semi-conductor experts GlobalFoundries to take over the chip unit.
IBM also published results for the third quarter, showing that net profit had fallen by 99.6 percent from the equivalent figure last year to $18 million, down from slightly more than $4.0 billion a year ago.
Although the cash payments will be made over three years, IBM is taking a $4.7 billion pre-tax charge in its financial results for the third quarter of 2014.
This covers the cash payment and all related charges and costs for getting rid of the costly unit.
Under the deal, GlobalFoundries will purchase and operate existing IBM semiconductor manufacturing operations and factories in East Fishkill, New York and Essex Junction, Vermont.
GlobalFoundries will emerge from the move as the largest semiconductor technology manufacturer in the US Northeast.
As part of the agreement, GlobalFoundries will gain thousands of patents and other intellectual property, making it the holder of one of the biggest semiconductor patent portfolios worldwide.
It will also become IBM's exclusive provider of semiconductor technology for servers for the next decade.
GlobalFoundries will obtain IBM's commercial microelectronics business, which includes ASIC and specialty foundry, manufacturing and related sales and operations.
With this sale, IBM will turn a page of its history and focus more narrowly on its service activities.
“The agreement expands our longstanding collaboration, which began when GlobalFoundries was created in 2009," IBM senior vice president and director of research John Kelly said in a statement.
"This acquisition enables IBM to focus on fundamental semiconductor and material science research, development capabilities and expertise in high-value systems, with GlobalFoundries' leadership in advanced technology manufacturing at scale and commitment to delivering future semiconductor technologies."
IBM currently is one of the last major companies in its sector to have a hold on the entire production cycle, from conceptualization to manufacturing and commercialization.
But in recent years, the group has gradually shed much of its other industrial activities to focus on service instead.

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

ibm reports quarterly profit plunge on disposal of chip unit ibm reports quarterly profit plunge on disposal of chip unit

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

ibm reports quarterly profit plunge on disposal of chip unit ibm reports quarterly profit plunge on disposal of chip unit

 



GMT 16:16 2014 Wednesday ,10 September

Samirah Ibrahim receives Saudi cultural attaché

GMT 09:32 2017 Sunday ,24 September

China confirms will limit oil exports to North Korea

GMT 19:56 2016 Saturday ,17 September

Typhoon Meranti death toll rises to 28

GMT 09:40 2018 Monday ,01 January

OIC Summit opens in Kazakhstan

GMT 06:37 2015 Monday ,07 December

Iran film directors protest colleague's jail term

GMT 18:37 2017 Friday ,25 August

Mental health issues should be prioritized

GMT 04:39 2017 Thursday ,31 August

Trump vows to right 'self-destructive' tax code

GMT 05:29 2017 Tuesday ,22 August

Celebrations across India on 71st Independence Day

GMT 10:54 2017 Wednesday ,11 October

Child obesity grows tenfold since 1975

GMT 02:31 2016 Tuesday ,06 December

Dubai Women Establishment delegation participates
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday