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 Home > News > General Computing > Analyst...
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Tuesday, July 17, 2012
Analysts See GlobalFoundries-IBM Deal


Future Horizon forecasted that GlobalFoundries will buy IBM's semiconductor division.

The transition to 450mm, which is expected to cost US$10 billion in initial investment per fab, is out of reach for many of the smaller players. Like previous step-ups, this transition is expected to result in a consolidation of the market, with smaller firms being gobbled up by bigger ones, which is what Future Horizon analysts are predicting.

According to the analysts, IBM has a history of axing low-margin businesses. However, it is expected to enter the 450mm market and profit from the technological edge for a few years before selling the business to GlobalFoundries.

Globalfoundries and IBM declined to comment.


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