Friday, January 02, 2015: Competition Commission of India (CCI), the organisation which looks after fair trade, has given a clearance to the proposed deal between technology companies IBM and Globalfoundries. The Commission announced that the deal is not expected to have any negative impact on the competitive industry in the country.
This deal says that Globalfoundries will acquire certain assets and will also assume the liabilities of the microelectronic business of IBM. While giving its clearance, the Commission said this deal between the two companies will not have an adverse effect on competition in India. Competition Commission of India (CCI) takes the responsibility to keep a check on the unfair business practices at the market place.
The microelectronic business covers captive design and manufacturing of integrated circuits. Apart from that, it also has the design and manufacture of ASICs for sale which are being sold to third parties. They also provide wafer fabrication services to third parties for manufacturing ASICs and also application specific standard products (ASSPs). IBM is already having a good phase in India.
On the other hand, GF offers wafer fabrication services and technologies but till now they don’t have any operation in India. In its order on 23 December, CCI said that domestic manufacturing of chips is still not happening in India and complete dependence is on imports.
