Do you think these units were actually losing money, or just not making enough such that they dragged down the percent earnings figures? Only reason I ask is that by selling these, IBM revenue may again drop but if the net effect on earnings, etc. is positive, it could offset the revenue drop, which seems so critical to all the stupid analysts these days.
Technology has evolved to the point that if you are making the chips you are on the end of the value chain.
Relax....IBM will still design chips and plow capital into R&D for 'quantum, graphene, and other advanced approaches. Making them is just too 90s. I applaud this move.
IBM likes to be proactive .. why wait until a biz unit is on the rocks before selling .. it's a balancing act ..
try to sell it while has good value , but margins have fallen below target ... also to continue with large
scale chip making , there will be a few billion needed in capex over the next few years .. this is a good
time for IBM to shop the chip shop ....
I don't foresee anyone wanting the 8" line in Essex. That equipment is so antiquated it's practically worthless. Plus with the soil and ground water contamination at the site, no fiscally responsible company would take on that liability.