Why Did IBM Paid Globalfoundries $1.5B to Take Chip Unit?

The video discusses IBM's strategic shift from hardware to software and services, highlighting issues like price handling and sales challenges. IBM has exited the chip manufacturing business, focusing on software and services, while Global Foundries expands its capacity. Despite these changes, IBM's stock is currently facing challenges. The company plans to invest in R&D and patents, aiming for long-term growth in software and services.

What was one of the main challenges IBM faced that delayed their strategic shift?

• Regulatory issues

• Lack of skilled workforce

• Pricing and strategic decisions

• Competition from new startups

How does IBM's shift away from hardware affect their future focus?

• They will focus on expanding their hardware division

• They will focus on developing new chip technologies

• They will concentrate on software and services

• They will enter the consumer electronics market

What is the immediate impact on IBM's stock following their strategic shift?

• The stock is unaffected

• The stock remains stable

• The stock is rising rapidly

• The stock is plummeting

What strategic advantage does Global Foundries gain from IBM's shift?

• Becoming a market leader in software

• Gaining exclusive rights to IBM's software patents

• Expanding capacity and becoming a strong competitor to Taiwan Semiconductor

• Entering the consumer electronics market

What is IBM's involvement in the chip industry after exiting manufacturing?

• They have partnered with another company to manufacture chips

• They are completely out of the chip industry

• They remain involved in R&D and hold patents

• They continue to manufacture chips but on a smaller scale