IBM has ended talks to sell off its chip-manufacturing operations to Globalfoundries after the duo could not agree on terms, according to reports.
Citing insiders familiar with the matter, Bloomberg reports that the bid from semiconductor firm Globalfoundaries – which is owned by an investment arm of the Abu Dhabi government – was too low.
The pair are believed to have opened negotiations for IBM's chip-making unit last month, with Big Blue's engineers and intellectual property being the main draw for the chip giant.
Globalfoundries, which has its own US plant in New York, had placed little or no value on IBM's factories because they are too old, the person told Bloomberg.
It is widely reported that IBM's efforts to shed its chip-making arm form part of its chief executive Ginni Rometty's plans to reverse nine consecutive quarters of sales decline by selling off some portions of the business.
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