Intel Corp (INTC)

[chipguy]

IBM can't give away its chip business: report

http://www.theregister.co.uk/2014/08/06/ibm_cant_give_away_its_chip_business_report/

IBM's attempt to offload its chipmaking business to GlobalFoundries saw it dangle a billion dollars in front of the putative purchaser, but that offer was rejected as inadequate.

So says Bloomberg, quoting a “person familiar” with the failed deal.

..

Bloomberg says that's because GlobalFoundries wanted $2bn in cash, a sum it deemed sufficient to stem losses while it turned things around.

GF probably didn't want to support fabrication of a tiny number of
POWER and system z devices in boutique SOI+EDRAM processes
for an extended period of time. The suggestion that all of IBM semi's
assets plus $1B couldn't make it attractive hints at how high IBM's
fixed costs and low its fab utilizations are.