CCI gives nod to IBM, Globalfoundries deal

Technology major IBM's proposed deal with US-based Globalfoundries has been cleared by fair trade watchdog CCI, which said the transaction would not have any adverse impact on competition in India. Under the deal, Globalfoundries (GF) would buy certain assets and assume the liabilities of IBM's microelectronic business. Giving its clearance, the regulator said the combination is not likely to have an appreciable adverse effect on competition in India. 

IBM's microelectronic business includes captive design and manufacture of integrated circuits —specifically, microprocessors and application specific integrated circuits (ASICs) for use in its server and storage businesses.

Besides, it has the design and manufacture of ASICs for sale to third parties as well as the provision of wafer fabrication services to third parties for the manufacture of ASICs and application specific standard products (ASSPs). IBM has good presence in India. A pure-play semiconductor foundry, the US-based GF offers a full range of wafer fabrication services and technologies. It does not have any operations in India. With respect to foundry services for manufacturing of integrated circuits in the country, the commission noted that the concerned industry is in a nascent stage.