Computer hardware and software giant International Business Machines Corporation paid a California-based firm $1.5 billion to take over a major portion of its chip-making business.
GlobalFoundries, which creates semiconductors, "also gets IBM's existing semiconductor manufacturing operations and plants in East Fishkill, New York and Essex Junction, Vermont, as well as its commercial microelectronics business," the Poughkeepsie Journal reported.
IBM was losing up to $1.5 billion a year on the chip-making business, according to some reports.
The deal is significant as it shows IBM stepping away from one of its longtime core businesses. The company said it will now focus on semiconductor research "and the development of future cloud, mobile, big data analytics, and secure transaction-optimized systems."