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.