IBM Corp has agreed to hive off its loss-making semiconductor unit to contract-chipmaker Globalfoundries Inc, the Wall Street Journal reported, citing people familiar with the matter.
IBM will pay Globalfoundries $1.5 billion to take the chip operations off its hands, WSJ said.
IBM issued an advisory on Sunday saying it would make a “major business announcement” on Monday.
Talks between IBM and Globalfoundries has been going on for a while.
IBM is also scheduled to report its third-quarter earnings on Monday.
Representatives at IBM and Globalfoundries were not immediately available for comment outside regular U.S. business hours.
Source : reuters