Quantcast

Report: IBM close to deal on chipmaking division - WCAX.COM Local Vermont News, Weather and Sports-

Report: IBM close to deal on chipmaking division

Posted: Updated:
ESSEX JUNCTION, Vt. -

A top online business magazine is reporting that IBM is nearing a deal to sell its chipmaking operations.

Sources close to the negotiations between Big Blue and GlobalFoundries tells Bloomberg that the two sides are close and a sale looks imminent.

"This is something that has been in talks for a year now and we have seen some of these IBM deals stick on price and what's included," said Alex Barinka from Bloomberg.

Bloomberg reports that GlobalFoundries, which has been the frontrunner to buy IBM's chipmaking, wants its engineers and intellectual property too, the patents and design.

"We know they are interested in the manufacturing side, but the lynch pin will be that intellectual property side and the engineers," said Barinka.

"Our primary concern, always, is the 4,000 Vermonters that work there," said Frank Cioffi from the Greater Burlington Industrial Development Corporation.

Frank Cioffi leads the GBIC, which advocates for economic development in the region. News that a sale may be coming, prompted GBIC to dig deep into Big Blue's economic impact in Vermont. Its study found IBM makes a $1 billion impact on the state's economy and fuels the financial well being of 10,000 families.

Cioffi says if a potential buyer is mainly interested in engineers and intellectual property, IBM's Essex Junction facility is still relevant and valuable.

"To build a facility and a fab like we have it's probably a $2 to $3 billion investment for anybody globally, so there is huge value in what we have here in physical assets, there's even greater value in what we have here in people," said Cioffi.

Barinka agrees and says GlobalFoundries might be a good fit, for now.

Reporter Darren Perron: Do you think they could shutter this plant?

Barinka: The thing to consider with that is to build a plant like this is very expensive, so it will be a cost benefit analysis for GlobalFoundries. If they have a need for these chips being manufactured there they might keep that location open until there's not a market demand for those specific products.

Barinka also says since IBM is looking to off load this plant, it might be the best scenario if GlobalFoundries buys it and keeps it going. Otherwise, it could get shuttered by Big Blue or another company.

In a statement, Gov. Peter Shumlin, D-Vermont, said, "I am closely following the press reports regarding IBM but cannot comment about their claims regarding these publicly traded companies, other than to say once again that the employees at IBM, their families and their communities are incredibly valuable to Vermont. I will do everything possible to work with IBM or any other company that were to come forward to ensure that these talented and hard-working individuals at the Essex facility continue to innovate there and contribute to the economic growth of our state."

Related Stories:

New numbers show what's at stake if IBM sells Vt. plant

Big buyer for Big Blue?

Is IBM's future in Vermont uncertain?

Report: GlobalFoundries in lead to buy IBM chip plants

Pink slips at Big Blue in Essex Jct.

Layoffs underway at IBM Essex Junction

Source: IBM Essex Jct. job cuts set for Thursday

Pink slips called off at IBM Essex Junction

Reports: IBM looking to sell chipmaking operations

Are big layoffs coming to Big Blue?
  • Local NewsMore>>

  • 2 charged with skid-steer joyride on I-89

    2 charged with skid-steer joyride on I-89

    Monday, September 1 2014 10:15 PM EDT2014-09-02 02:15:25 GMT
    The theft of some construction vehicles caused chaos on the Interstate this weekend.
    The theft of some construction vehicles caused chaos on the Interstate this weekend.
  • Bike racers wrap up weekend events

    Bike racers wrap up weekend events

    Monday, September 1 2014 9:59 PM EDT2014-09-02 01:59:03 GMT
    The Green Mountain Stage Race took to the streets of Burlington Monday.
    The Green Mountain Stage Race took to the streets of Burlington Monday.
  • Allergy sufferers brave ragweed season

    Allergy sufferers brave ragweed season

    Monday, September 1 2014 7:08 PM EDT2014-09-01 23:08:26 GMT
    If you're sneezing, your nose is running and you're eyes are itchy once again this year -- you're not alone. Fall pollen counts are peaking in our region and proving tough for allergy sufferers looking to enjoy the outdoors.Despite a spate of heat and humidity, the signs of fall are undeniable. Cooler temperatures and color are on the way. And even though many think of spring as "allergy season" due to tree pollens, this time of year can be particularly tough for allergy sufferers, too -- bec...
    If you're sneezing, your nose is running and you're eyes are itchy once again this year -- you're not alone. Fall pollen counts are peaking in our region and proving tough for allergy sufferers looking to enjoy the outdoors.Despite a spate of heat and humidity, the signs of fall are undeniable. Cooler temperatures and color are on the way. And even though many think of spring as "allergy season" due to tree pollens, this time of year can be particularly tough for allergy sufferers, too -- bec...
  • Holiday drivers find lower prices at the pump

    Holiday drivers find lower prices at the pump

    Monday, September 1 2014 6:59 PM EDT2014-09-01 22:59:21 GMT
    Drivers this holiday weekend found lower gas prices at the pump.
    Drivers this holiday weekend found lower gas prices at the pump.
  • Sanders addresses Labor Day rally

    Sanders addresses Labor Day rally

    Monday, September 1 2014 6:51 PM EDT2014-09-01 22:51:52 GMT
    Community members gathered in Burlington's Battery Park Monday to celebrate Labor Day -- and hear from Senator Bernie Sanders.Union leaders addressed the importance of employees supporting one another. They also thanked the community for supporting Vermont's unions. Senator Sanders says the holiday is for working people to not only celebrate their gains, but to also address issues facing the working class."There's a lot of work in front of us if we're going to make sure that our kids and our ...
    Community members gathered in Burlington's Battery Park Monday to celebrate Labor Day -- and hear from Senator Bernie Sanders.Union leaders addressed the importance of employees supporting one another. They also thanked the community for supporting Vermont's unions. Senator Sanders says the holiday is for working people to not only celebrate their gains, but to also address issues facing the working class."There's a lot of work in front of us if we're going to make sure that our kids and our ...
  • Authorities seize animals from Santa's Land

    Authorities seize animals from Santa's Land

    Monday, September 1 2014 4:32 PM EDT2014-09-01 20:32:03 GMT
    The Windham County Sheriffs Department says it seized multiple animals from the theme park this weekend.
    The Windham County Sheriffs Department says it seized multiple animals from the theme park this weekend.
  • Body discovered in Massena

    Body discovered in Massena

    Monday, September 1 2014 4:02 PM EDT2014-09-01 20:02:43 GMT
    New York State Police are investigating an unidentified body found in Massena.
    New York State Police are investigating an unidentified body found in Massena.
  • Community remembers O'Hagan's presence at Sheffield Field Days

    Community remembers O'Hagan's presence at Sheffield Field Days

    Monday, September 1 2014 6:54 PM EDT2014-09-01 22:54:21 GMT

    Sheffield Field Days is a Labor Day tradition -- attended by hundreds. But each year the event reminds the community who is missing.

    Sheffield Field Days is a Labor Day tradition -- attended by hundreds. But each year the event reminds the community who is missing.

Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and WCAX. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms of Service.