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IBM to Pay Globalfoundries $1.5 Billion to Take Chip Unit

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International Business Machines Corp. agreed to pay Globalfoundries Inc. $1.5 billion to take an unprofitable chip-manufacturing unit off its hands.

IBM will pay Globalfoundries the cash over three years, the companies said in a statement today. Globalfoundries will be IBM’s exclusive provider of specific Power processors for the next 10 years, in exchange for access to IBM’s intellectual property. IBM will take a third-quarter pretax charge of $4.7 billion.