Analysts point out that the chip manufacturing deal between IBM and GlobalFoundries faces possible regulatory roadblocks. IBM wants to hand over its loss-making chip manufacturing division to GlobalFoundries but getting approval may be tricky as the deal needs to be approved by as many as 200 regulators worldwide.
The biggest hurdles likely will be getting approval from as many as 200 regulators around the world, especially in the US. IBM’s ASIC and systems customers include US defense contractors, government agencies, and national labs for which it supplies supercomputers that monitor the US nuclear stockpile.
GlobalFoundries is primarily owned by an investment arm of the government of Abu Dhabi. That triggers a review by the Committee on Foreign Investment in the United States, which could reject or impose conditions on aspects of the deal, and triggers a review from the White House.