Analyst, economist weigh potential of IBM sale to Globalfoundries

1348 words / VTDigger.org

If IBM were to sell its computer chip-making unit to California-based Globalfoundries — patents and all, as the company is widely rumored to be considering — would the new owner of Vermont’s largest manufacturing plant even want to keep it?

Probably not, according to Len Jelinek, a semiconductor manufacturing industry analyst for the global information firm IHS.

IBM is Vermont’s largest private employer, with about 4,000 workers, and anxiety about the impact of the plant’s sale and potential closure is palpable.

Despite these feverish efforts to keep IBM in the Green Mountain State, there is little the state can do to prevent a potential closure of the plant. Global trends are driving behind-the-scenes negotiations between powerful industry players.

Job losses of IBM’s magnitude are easier to absorb over time, economist Art Woof acknowledged. Still, he said, the area’s financial engine is diversified and resilient enough that even such a “worst case scenario” would not kill the economy.

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