In what appears to be a bare-knuckle negotiation tactic, GlobalFoundries is recruiting employees out of IBM's back yard as the two companies haggle over IBM's microchip business.

IBM had reportedly been in the final stages of talks with GlobalFoundries over the sale of its microchip manufacturing business, a deal that could fetch IBM as much as $2 billion,

However, those discussions may have cooled in recent days. On Sunday, GlobalFoundries bought full-page advertisements in the Burlington Free Press and the Poughkeepsie Journal seeking applicants for hundreds of job openings at its Fab 8 computer chip plant in Malta.

IBM has large computer chip factories outside Burlington, Vt., and Poughkeepsie, and so the ads would appear to be targeting IBM workers. The need to run such ads — at least their timing — is curious because 200 workers from IBM's factories in Burlington and East Fishkill already were being sent to Fab 8 this summer as part of a contract IBM has with GlobalFoundries to provide engineers to help with a $10 billion expansion of the factory.

It's also been expected that one of the most valuable assets GlobalFoundries would receive in any deal with IBM would be IBM's experienced workforce.

Why would GlobalFoundries try to poach those workers now if a deal were imminent?

One reason is that the semiconductor industry is extremely competitive, so much so that companies like IBM and GlobalFoundries, which partner on both research and manufacturing, also fight tooth-and-nail against one another for customers and talent.

Another reason could be to put pressure on IBM to complete the sale, especially if the talks are stalled.

However, GlobalFoundries, which hasn't even acknowledged that talks with IBM are taking place, says the ads are just part of a larger, nationwide recruitment effort to help the company expand from its current workforce of 2,000 to 3,000 by the end of the year. As is typical in the industry, GlobalFoundries targets populations with a large concentration of semiconductor workers with manufacturing experience. IBM has already gone through several waves of layoffs in recent years in both cities that have forced many engineers and scientists to relocate to find work.

"I can't speak to any IBM plans, but Burlington and East Fishkill are obviously similar markets as those areas have a concentration of experienced semiconductor people," said GlobalFoundries spokesman Travis Bullard. "This recruiting is in addition to the hundreds of contractors we have on site supporting specific projects and activities."

IBM did not respond to a request for comment.

By: DocMemory
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