Talks between IBM and GlobalFoundries over Big Blue’s fabrication operations broke down because IBM was not willing to pay the potential buyer enough to take the under-performing unit, Bloomberg news reported Tuesday.
According to Bloomberg, IBM offered GlobalFoundries $1 billion to take over its chip-making operations, but the Abu Dhabi-owner conglomerate wanted twice that much to offset the division’s losses. IBM chip-making operations include the facility in Essex Junction, which is part of IBM’s unprofitable Systems and Technology Group.
Experts cited in the Bloomberg article suggested the deal might still be completed.
