IBM likely exiting chip making business

IBM likely exiting chip making business

IBM is not a household name lately as the company has been exiting the computer business for years, selling its hard drive division to Hitachi in the distant 2003 year and then its PC division to Lenovo. Now the latest rumor regarding the company claims that IBM will exit the chip making business altogether.

The source of the news is unknown, although it claims to be “familiar with the matter”. IBM now seeks to sell its fabrications plants to other companies so that it can focus on service provision rather than hardware sales. Another reason is that IBM’s microelectronics arm loses around USD 130 million per year and with PC sales this gap is likely to grow. In addition IBM’s chips have not been particularly popular in the past few years. They were used in various gaming consoles but the latest models such as the Xbox One and PlayStation 4 have opted for chips from AMD rather than IBM.

IBM did not comment the news.

Source: Bit-tech.net

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