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Taiwan Semiconductor Manufacturing Company Looks Set to Win IBM Chip Orders

Time: 2018-11-21 11:48:20

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Historically, International Business Machines (NYSE:IBM) owned and operated its own chip manufacturing plants and invested heavily to develop the manufacturing recipes -- known as processes -- to build its POWER and Z-series chips that power its server and mainframe products, respectively. That changed, however, in 2015, when IBM inked a deal to sell its chip manufacturing plants and transfer its technology development staff to pure-play contract chip manufacturer GlobalFoundries. 

GlobalFoundries, at the time, had boasted that the acquisition of the IBM assets "solidifies its path to advanced process technologies at 10nm, 7nm, and beyond."

Inside an Intel chip manufacturing plant.

INSIDE AN INTEL CHIP MANUFACTURING PLANT. IMAGE SOURCE: INTEL.

As part of the deal, GlobalFoundries said that it had agreed to an "exclusive commitment to supply IBM with some of the world's most advanced semiconductor processors solutions for the next 10 years." 

"[GlobalFoundries] also gets direct access to IBM's continued investment in world-class semiconductor research, solidifying its path to advanced process geometries at 10nm and beyond," GlobalFoundries said in a press release.

Unfortunately for IBM, GlobalFoundries -- for all of its boasting -- announced back in August that it had put its "7nm FinFET program on hold indefinitely" and is "restructuring its research and development teams to support its enhanced portfolio initiatives." 


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