IBM Microelectronics: Difference between revisions

Revision as of 23:18, 16 February 2024

Revision as of 18:06, 19 February 2024

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==History==

IBM Microelectronics took root from the opening of two separate facilities for [[microelectronics]]: a [[Burlington, 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 Burlington 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, the first computer built entirely from integrated circuits, abandoning the [[core memory]] of old. Employment in the Burlington 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 news | 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 | newspaper=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 Burlington 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://books.google.com/books?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==

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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 |access-date=2023-04-17 |website=www.anandtech.com}}</ref>

In 2021, IBM and 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 />