It gets two new fabs and 16,000 patents added to its portfolio. In addition, IBM is paying GloFlo $1.5 billion and investing a further $3 billion over the next five years to get rid of a division which has been running at a considerable loss for ages..

The deal seems odd as it appears to favour GlobalFoundries and making making it well-funded and patent-rich with little value to Biggish Blue.

Sanjay Jha, chief executive officer of GlobalFoundries admitted the company had significantly enhanced its technology development capabilities and reinforce our long-term commitment to investing in R&D for technology leadership.

"We have added world-class technologists and differentiated technologies, such as RF [radio frequency] and ASIC [application-specific integrated circuit], to meet our customers' needs and accelerate our progress toward becoming a foundry powerhouse," he said.

GlobalFoundries takes over IBM's manufacturing plants in East Fishkill, New York and Essex Junction, Vermont, which it says it will continue to run in order to boost its own production rates.

In exchange for the cash, patents and facilities, GlobalFoundries has agreed to continue to supply IBM with semiconductors for at least the next decade while IBM will provide GlobalFoundries with the results of its ongoing $3 billion investment in semiconductor research and development over the next five years.