IBM Microelectronics: Difference between revisions

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{{Short description|Defunct semiconductor division of IBM}}

{{Use mdy dates|date=January 2023}}

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{{Infobox company

| name=IBM Microelectronics Division

| parent=[[IBM|International Business Machines Corporation (IBM)]]

| logo=IBM logo.svg

| logo_size=

| founded={{start date and age|1966}}

| defunct={{start date and age|2015}}

| hq_location={{flatlist|

* [[BurlingtonEssex Junction, Vermont]]

* [[East Fishkill, New York]] ([[Hudson Valley Research Park]])

* [[North Carolina]]

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| industry=[[Semiconductor]]

| fate=Divestiture; remaining plants sold to [[GlobalFoundries]] (excluding Quebec)

| website={{webarchive | url=https://web.archive.org/web/19961222145642/http://www.chips.ibm.com/ | date=December 22, 1996 | title=chips.ibm.com}}

}}

'''IBM Microelectronics Division''' was the [[semiconductor]] arm of [[IBM|International Business Machines Corporation (IBM)]] from 1966 to 2015. Two facilities in [[BurlingtonEssex Junction, Vermont]], and [[East Fishkill, New York]], housed the majority of the division. It was sold to [[GlobalFoundries]] in 2015; as part of the agreement, IBM gave its BurlingtonEssex Junction and East Fishkill factories and $1.5&nbsp;billion in cash to GlobalFounderiesGlobalFoundries in exchange for the latter supplying high -technology chips to IBM for a decade.

==History==

IBM Microelectronics took root from the opening of two separate facilities for [[microelectronics]]: a [[BurlingtonEssex Junction, Vermont]], facility in 1957, and the [[Hudson Valley Research Park]] facility in 1963.<ref name=poughkeepsiejournal2015>{{cite web | last=Wolf | first=Craig | date=June 30, 2015 | url=https://www.poughkeepsiejournal.com/story/money/2015/06/30/impacts-plentiful-ibm-globalfoundries-deal/29516915/ | title=It's Day One as GlobalFoundries for ex-IBM plant | work=Poughkeepsie Journal | publisher=Gannett Company | archiveurl=https://web.archive.org/web/20150704143435/https://www.poughkeepsiejournal.com/story/money/2015/06/30/impacts-plentiful-ibm-globalfoundries-deal/29516915/ | archivedate=July 4, 2015}}</ref><ref name=mynbc5>{{cite web | last=Ledbetter | first=Stewart | date=July 2, 2015 | url=https://www.mynbc5.com/article/globalfoundries-takes-control-of-ibm-semiconductor-division/3324138 | title=GlobalFoundries takes control of IBM semiconductor division | work=[[WPTZ|My NBC5]] | publisher=Hearst Television | archiveurl=https://web.archive.org/web/20170509205428/https://www.mynbc5.com/article/globalfoundries-takes-control-of-ibm-semiconductor-division/3324138 | archivedate=May 9, 2017}}</ref> The Microelectronics Division was formally organized in 1966.<ref>{{cite web | last=Staff writer | date=October 10, 2012 | url=https://www.automationworld.com/home/news/13307819/endicott-interconnect-technologies-names-raj-rai-chief-technology-officer | title=Endicott Interconnect Technologies Names Raj Rai Chief Technology Officer | work=AutomationWorld | publisher=PMMI Media Group | archiveurl=httphttps://archive.today/2023.01.24-19154520230124191545/https://www.automationworld.com/home/news/13307819/endicott-interconnect-technologies-names-raj-rai-chief-technology-officer | archivedate=January 24, 2023}}</ref> By 2001, its operations also comprised offices in [[North Carolina]], [[Minnesota]], [[Colorado]].<ref name=Yi2001>{{cite web | last=Yi | first=Matthew | author2=Benjamin Pimentel | author3=George Raine | date=November 29, 2001 | url=https://www.sfgate.com/bayarea/article/BUSINESS-DIGEST-2849291.php | title=Business Digest | work=SFGate | publisher=Hearst | archiveurl=https://web.archive.org/web/20230124193147/https://www.sfgate.com/bayarea/article/BUSINESS-DIGEST-2849291.php | archivedate=January 24, 2023}}</ref> It also had a plant in [[Quebec]].<ref name=quebec>{{Cite news|last=Bertrand Marotte|date=October 20, 2014|title=IBM plant in Quebec not part of semiconductor divestiture|language=en-CA|work=The Globe and Mail|url=https://www.theglobeandmail.com/report-on-business/ibm-plant-in-quebec-not-part-of-semiconductor-divestiture/article21161118/|access-date=December 18, 2021}}</ref>

The BurlingtonEssex Junction facility spanned {{convert|700|acre|km2}} and was the primary site of domestic semiconductor manufacture for IBM before 2002.<ref name=vermontbiz /><ref name=eetimes1>{{cite web | last=Staff writer | date=May 14, 2002 | url=https://www.eetimes.com/ibm-reportedly-looks-to-sell-part-of-vermont-fab-site/ | title=IBM reportedly looks to sell part of Vermont fab site | work=EETimes | publisher=AspenCore | archiveurl=httphttps://archive.today/2023.01.24-19284020230124192840/https://www.eetimes.com/ibm-reportedly-looks-to-sell-part-of-vermont-fab-site/ | archivedate=January 24, 2023}}</ref> In 1966, this factory produced the first mass manufactured [[Semiconductor memory|semiconductor]] [[Dynamic random-access memory|DRAM]], based on [[Robert H. Dennard]]'s patents developed for IBM in 1966. Such chips were later used in the company's [[IBM System/370 Model 145|System/370 Model 145]] mainframe (1970), theIBM's first computer built entirely from integrated circuits, abandoning the [[core memory]] of old. Employment in the BurlingtonEssex Junction facility peaked in the mid-1990s, with roughly 8,500 employees.<ref name=vermontbiz>{{cite web | last=McQuiston | first=Timothy | date=June 30, 2015 | url=https://vermontbiz.com/news/2015/june/30/ibm-thanks-memories | title=IBM, thanks for the memories | work=Vermont Business Magazine | archiveurl=httphttps://archive.today/2023.01.24-19420320230124194203/https://vermontbiz.com/news/2015/june/30/ibm-thanks-memories | archivedate=January 24, 2023}}</ref> Meanwhile, The Hudson Valley Research Park facility in [[East Fishkill, New York]], spanned {{convert|464|acre|km2}} and was the primary site of semiconductor wafer and packaging manufacture after 2002.<ref name=poughkeepsiejournal2015 />

In 2002, as part of a wave of major layoffs within IBM cutting 15,600 jobs by August that year,<ref name=wp>{{cite webnews | last=Staff writer | date=August 14, 2002 | url=https://www.washingtonpost.com/archive/business/2002/08/14/ibm-cutting-15600-jobs/00df405d-a9f1-4ff7-bdb1-db9182fb4b4f/ | title=IBM Cutting 15,600 Jobs | worknewspaper=The Washington Post | archiveurl=httphttps://archive.today/2023.01.24-20024820230124200248/https://www.washingtonpost.com/archive/business/2002/08/14/ibm-cutting-15600-jobs/00df405d-a9f1-4ff7-bdb1-db9182fb4b4f/ | archivedate=January 24, 2023}}</ref> the company let go of 1,500 people in their Microelectronics facility in BurlingtonEssex Junction and East Fishkill. This layoff primarily affected the former, which had employed 7,000.<ref name=cnnmoney>{{cite web | last=Richtmyer | first=Richard | date=June 4, 2002 | url=https://money.cnn.com/2002/06/04/technology/ibm/index.htm | title=IBM cuts more jobs, sets charge | work=CNNMoney | publisher=AOL–Time Warner | archiveurl=https://web.archive.org/web/20020805133327/https://money.cnn.com/2002/06/04/technology/ibm/index.htm | archivedate=August 5, 2002}}</ref><ref name=Mokhoff2003>{{cite web | last=Mokhoff | first=Nicolas | date=August 19, 2003 | url=https://www.eetimes.com/ibm-lays-off-500-at-vermont-microelectronics-plant-2/ | title=IBM lays off 500 at Vermont microelectronics plant | work=EETimes | publisher=AspenCore | archiveurl=httphttps://archive.today/2023.01.24-20041720230124200417/https://www.eetimes.com/ibm-lays-off-500-at-vermont-microelectronics-plant-2/ | archivedate=January 24, 2023}}</ref> Executives at IBM called the layoffs part of a restructuring of the Microelectronics Division, whose business was to move toward operating as a [[chip foundry]] on a [[Contract manufacturer|contract]] basis, instead of mass manufacturing its own wares to sell onto the semiconductor market.<ref name=cnnmoney /> A large portion of IBM's Microelectronics operations in Vermont was spun off into a new company, Endicott Interconnect Technologies (EI), in 2002.<ref>{{cite book | last=Burton | first=Terrence T. | date=2011 | url=https://wwwbooks.google.com/books/edition/Accelerating_Lean_Six_Sigma_Results/?id=LSZMLC1t3KsC | title=Accelerating Lean Six Sigma Results: How to Achieve Improvement Excellence in the New Economy | publisher=J. Ross | page=81 | isbn=9781604270549 | via=Google Books}}</ref> Another layoff the Vermont factory in 2003 reduced the headcount by 500, with 6,000 employees remaining.<ref name=Mokhoff2003 />

==2015 sale to GlobalFoundries==

Following a year of discussion,<ref>{{cite web|title=IBM Looking to Sell Chip Manufacturing Operations|url=https://www.wsj.com/articles/SB10001424052702303496804579367710245657016|website=The Wall Street Journal|date=February 7, 2014 |publisher=Dow Jones & Company |last1=Clark |first1=Don |last2=Ante |first2=Spencer E. }}</ref><ref>{{Cite web|last=Brodkin|first=Jon|date=October 20, 2014|title=Struggling IBM pays $1.5 billion to dump its chipmaking business|url=https://arstechnica.com/information-technology/2014/10/struggling-ibm-pays-1-5-billion-to-dump-its-chipmaking-business/|access-date=December 18, 2021|website=Ars Technica|publisher=Ars Technica|language=en-us}}</ref> in 2015, IBM divested its entire Microelectronics Division, now only comprising the East Fishkill and BurlingtonEssex Junction facilities, to [[GlobalFoundries]]—itself a spin-off of once long-time rival [[AMD]]. As part of the deal, IBM paid GlobalFoundries $1.5&nbsp;billion in exchange for the latter supplying IBM with high semiconductor technology for the next decade.<ref name=poughkeepsiejournal2015 /><ref name=mynbc5 /> The Quebec plant remained unaffected by the deal, having been placed under IBM's Canadian subsidiary.<ref name=quebec />

In 2019, [[Marvell Technology|Marvell]] acquired Avera Semiconductor from GlobalFoundries, that was previously part of IBM Microelectronics.<ref>{{Cite web |last=Frumusanu |first=Andrei |title=Marvell Unveils its Comprehensive Custom ASIC Offering |url=https://www.anandtech.com/show/15931/marvell-unveils-its-comprehensive-custom-asic-offering |archive-url=https://web.archive.org/web/20200728013445/https://www.anandtech.com/show/15931/marvell-unveils-its-comprehensive-custom-asic-offering |url-status=dead |archive-date=July 28, 2020 |access-date=2023-04-17 |website=www.anandtech.com}}</ref>

In June 2021, IBM sued GlobalFoundries for breach of contract, alleging that GlobalFoundries misused the $1.5&nbsp;billion in unrelated ventures. IBM stated:<ref name=burlingtonfreepress>{{cite web | last=D'Ambrosio | first=Dan | date=June 11, 2021 | url=https://www.burlingtonfreepress.com/story/news/2021/06/11/ibm-sues-globalfoundries-breach-contract-semiconductor-spat-essex-junction-microelectronics-vt/7652597002/ | title=IBM sues GlobalFoundries for breach of contract, wants its $1.5 billion back and more | work=Burlington Free Press | publisher=Gannett Company | archiveurl=http://archive.today/2023.01.24-202452/https://www.burlingtonfreepress.com/story/news/2021/06/11/ibm-sues-globalfoundries-breach-contract-semiconductor-spat-essex-junction-microelectronics-vt/7652597002/ | archivedate=January 24, 2023}}</ref>

In June 2021, IBM suedand GlobalFoundries sued each other for breach of contract, with IBM alleging that GlobalFoundries misused the $1.5&nbsp;billion in unrelated ventures. IBM stated:<ref name="burlingtonfreepress">{{cite web | last=D'Ambrosio | first=Dan | date=June 11, 2021 | url=https://www.burlingtonfreepress.com/story/news/2021/06/11/ibm-sues-globalfoundries-breach-contract-semiconductor-spat-essex-junction-microelectronics-vt/7652597002/ | title=IBM sues GlobalFoundries for breach of contract, wants its $1.5 billion back and more | work=Burlington Free Press | publisher=Gannett Company | archiveurl=httphttps://archive.today/2023.01.24-20245220230124202452/https://www.burlingtonfreepress.com/story/news/2021/06/11/ibm-sues-globalfoundries-breach-contract-semiconductor-spat-essex-junction-microelectronics-vt/7652597002/ | archivedate=January 24, 2023}}</ref>

<blockquote>

IBM depended on GlobalFoundries after investing heavily in a long-term mutual relationship. GlobalFoundries responded by taking IBM's money, and benefitting from IBM's knowledge, skill and assets. Though GlobalFoundries repeatedly assured IBM it would meet its commitments, GlobalFoundries instead abruptly and without any justification walked away from IBM while IBM was reliant on GlobalFoundries. GlobalFoundries has demonstrably failed to act as a reliable partner and supplier.<ref name=burlingtonfreepress />

</blockquote>

The lawsuit was issued among the then-current ({{as of|2023|01|lc=y}}) [[2020–present globalGlobal chip shortage (2020–2023)|global chip shortage]]. A spokesperson for GlobalFoundries called the claims "meritless ... Quite frankly, this is very disappointing coming from a company we have such a long history and strong partnership with."<ref name=burlingtonfreepress /> In 2023, GlobalFoundries sued IBM again over an [[intellectual property]] dispute involving IBM's agreement with [[Rapidus]].<ref>{{Cite web |title=GlobalFoundries sues IBM, says trade secrets were unlawfully given to Japan's Rapidus |url=https://www.cnbc.com/2023/04/20/globalfoundries-sues-ibm-says-unlawfully-gave-rapidus-trade-secrets.html |date=2023-04-20 |website=CNBC |language=en}}</ref>

In January 2025, IBM and GlobalFoundries settled the lawsuit.<ref>{{Cite news |last=Brittain |first=Blake |date=January 2, 2025 |title=IBM, GlobalFoundries settle lawsuits over contract, trade secrets |url=https://www.reuters.com/legal/ibm-globalfoundries-settle-lawsuits-over-contract-trade-secrets-2025-01-02/ |work=[[Reuters]]}}</ref>

== Products ==

* [[PowerPC]]

** [[Cell (processor)|Cell Broadband Engine Architecture]]

* [[Solid Logic Technology]]

* [[IBM 386SLC]]

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== External links ==

* {{webarchive | url=https://web.archive.org/web/19961222145642/http://www.chips.ibm.com/ | date=December 22, 1996 | title=Official website}}
* {{cite web | last=Pickup | first=Lance | date=July 1, 2015 | url=https://www.linkedin.com/pulse/reflections-transfer-ibm-microelectronics-global-foundries-pickup | title=Reflections on the transfer of IBM Microelectronics to Global Foundries | work=Pulse | publisher=LinkedIn | archiveurl= | archivedate=}}

{{IBM}}

[[Category:Former IBM subsidiaries|Microelectronics]]

[[Category:GlobalFoundries]]

[[Category:1963 establishments in New York (state)]]

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[[Category:IBMAmerican subsidiariescompanies established in 1957]]

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[[Category:Computer companies established in 1957]]

[[Category:Computer companies disestablished in 2015]]

[[Category:Defunct computer companies of the United States]]

[[Category:Defunct technologycomputer companies ofbased thein UnitedNew StatesYork (state)]]

[[Category:Defunct computer hardware companies]]

[[Category:Defunct semiconductor companies of the United States]]

[[Category:Defunct technology companies of the United States]]