An IBM employee does inspections on microelectronics at their Bromont, Que., plant on April 28, 2010.Christinne Muschi/The Globe and Mail
IBM Corp.'s microelectronics manufacturing facility in Bromont, Que., is not part of the computer giant's divestiture of its money-losing semiconductor unit.
IBM said on Monday it is paying contract chip maker Globalfoundries Inc. $1.5-billion (U.S.) in cash over the next 3 years to take the microchip operations off its hands.
The divestiture will result in IBM taking a $4.7-billion pre-tax charge in its third quarter.
California-based Globalfoundries is taking over IBM's manufacturing facilities in East Fishkill, N.Y., and Essex Junction, Vt., and said it will offer jobs to most of the IBM employees affected by the transaction.
"IBM's microelectronics manufacturing facilities in Canada – in Bromont, Quebec – are not included in this deal," IBM Canada spokeswoman Carrie Bendzsa said.
"Our Bromont facility retains its current mission, which is to develop and build advanced semiconductor packaging solutions for IBM server and storage products. It will also build custom logic modules for Globalfoundries."
IBM's Bromont plant in Quebec's Eastern Townships opened in 1972 with about 200 employees. It was at first a small-scale manufacturer of metallic substrates. In 1974, it added assembly of the doomed Selectric typewriter to its operations.
The personal computer era forced IBM to replace typewriter assembly with electronic microcomponent manufacturing.
IBM says it has invested more than $1.3-billion in the Bromont plant since 1972. It now employs more than 2,800 people.
Bertrand Marotte