Intel Corp (INTC)

[chipguy]

Globalfoundries Will Try To Make Lemonade From IBM's Lemons

http://www.forbes.com/sites/rogerkay/2014/10/20/globalfoundries-will-try-to-make-lemonade-from-ibms-lemons/?partner=yahootix

Such an arrangement might look unusual at first glance, but IBM’s semi group has been losing a bundle of money over the past few years — $700 million last year and similar amounts previously — and shows no immediate prospects of going cash-flow positive.

As the cost of making chips has risen, IBM’s volume base has declined, making the business less and less viable each year. At this point, IBM is practically the only company using its own Power chips.

I love this line:

Thus, the odd terms of the deal, which has IBM paying Globalfoundries, like some garbage hauler, to take the material away.