IBM mulling sale of semiconductor unit

Has appointed Goldman Sachs to identify potential buyers

Tech corporation IBM is reportedly said to be exploring the sale of its semiconductor unit soon after giving away its low-end server business to Lenovo Group.

IBM is rumoured to have appointed investment bank Goldman Sachs to identify potential buyers and the company could also seek to set up a semiconductor joint venture.

According to PC World, the semiconductor business is described as the company's most technology intensive, and contributes technologies for some key initiatives including the Watson cognitive computing system and high-end servers.

Various media reports have indicated to this possible sale and have claimed that IBM plans to retain its chip-design capabilities while selling the manufacturing operation.

The report said that in the fourth quarter of 2013, revenue from IBM's microelectronics business with third parties decreased by 33% compared to the same period in the previous year.

Meanwhile, IBM did not immediately comment on the possible sale of its semiconductor business.