IBM may have sold off its chip manufacturing business, but don’t count it out as a hardware force to be reckoned with. It still plans to fight on, developing faster computers and cognitive computing systems like Watson.

IBM will pay $1.5 billion to GlobalFoundries to take over its chip-making factories, but will continue to design high-end chips and sell servers and supercomputers. Its hardware future now rests on the Power processor architecture, which over the years has been used by Apple in some Macs, Sony’s PlayStation 3 and IBM mainframes. The Power processor will continue to appear in supercomputers, though GlobalFoundries will make the actual chips.

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