IBM Microelectronics
| Company type | Division |
|---|---|
| Industry | Semiconductor |
| Founded | 1966 |
| Founder | International Business Machines Corporation (IBM) |
| Defunct | 2015 |
| Fate | Sold to GlobalFoundries |
| Successor | GlobalFoundries (ownership transferred) |
| Headquarters | Burlington, Vermont and East Fishkill, New York , United States |
Area served | Worldwide |
| Products | PowerPC, Cell Broadband Engine Architecture, Solid Logic Technology, IBM 386SLC, IBM 486SLC, Cyrix 5x86 microprocessor |
| Owner | International Business Machines Corporation (until 2015) |
Number of employees | Approximately 7,000 (mid-1990s peak at Burlington site) (Mid-1990s) |
| Parent | International Business Machines Corporation (IBM) |
IBM Microelectronics Division served as the semiconductor branch of the International Business Machines Corporation (IBM) from 1966 until 2015. Its principal operations were located in Burlington, Vermont and East Fishkill, New York. In 2015, IBM transferred ownership of this division to GlobalFoundries, handing over the Burlington and East Fishkill plants along with $1.5 billion in cash, in return for a ten-year supply agreement for advanced semiconductor components.
History
The origins of IBM Microelectronics trace back to two separate sites: one established in Burlington, Vermont in 1957 and another at Hudson Valley Research Park beginning in 1963. The division itself was officially formed in 1966.<ref> By 2001, the division had grown to include offices in North Carolina, Minnesota, and Colorado, as well as a manufacturing facility in Quebec.<ref>
Before 2002, the Burlington campus—spanning —served as IBM’s central semiconductor production center. It was responsible for manufacturing the first commercially produced DRAM chips based on Robert H. Dennard's patents, which powered IBM’s System/370 Model 145 mainframe computer, marking the company’s initial use of fully integrated circuits. Employment at this site peaked near 8,500 workers during the mid-1990s.<ref> Post-2002, the East Fishkill location, covering , became the primary site for semiconductor wafer fabrication and packaging.<ref>
In 2002, IBM implemented a reduction of 15,600 jobs across its operations; within Microelectronics, approximately 1,500 positions were eliminated, predominantly at Burlington where roughly 7,000 employees remained. This restructuring shifted the division’s focus toward functioning as a contract semiconductor foundry rather than producing proprietary products for sale.<ref> That same year, a substantial segment of the Vermont operations was spun off into Endicott Interconnect Technologies (EI).<ref> Further workforce reductions occurred in 2003 when about 500 jobs were cut at Vermont facilities, reducing staff to near 6,000.<ref>
2015 sale to GlobalFoundries
In 2015, IBM sold its Microelectronics Division—including both East Fishkill and Burlington plants—to GlobalFoundries, a company formed from a former competitor, AMD. As part of the transaction, IBM provided GlobalFoundries with $1.5 billion upfront in exchange for a ten-year supply of cutting-edge semiconductor technology. The Quebec facility remained under IBM’s Canadian subsidiary control.
In 2019, Marvell purchased Avera Semiconductor from GlobalFoundries; this business was originally part of IBM Microelectronics.
By 2021, IBM initiated legal action against GlobalFoundries alleging breach of contract. IBM claimed that GlobalFoundries misappropriated the $1.5 billion investment and failed to honor its contractual obligations, stating:
IBM relied heavily on GlobalFoundries following a substantial investment to foster a long-term partnership. GlobalFoundries accepted IBM's funds and benefited from IBM's expertise and assets. Despite repeated assurances to fulfill its commitments, GlobalFoundries abruptly and unjustifiably abandoned IBM during a critical period of dependency. GlobalFoundries has clearly failed to act as a dependable partner and supplier.
This legal conflict emerged amid the global semiconductor shortage spanning from 2020 to 2023. GlobalFoundries rejected these allegations as "without merit" and expressed regret over the dispute given their longstanding collaboration with IBM. In 2023, GlobalFoundries filed an additional lawsuit against IBM concerning intellectual property issues related to IBM’s agreement with Rapidus.
In January 2025, both companies reached a settlement resolving all pending litigation concerning contractual disagreements and trade secret matters.
Products
- PowerPC
- Solid Logic Technology
- IBM 386SLC
- IBM 486SLC
- Cyrix 5x86, a microprocessor created by IBM Microelectronics for Cyrix