IBM’s plan to transfer its semiconductor manufacturing business to GlobalFoundries faces a government review over national security implications. It has the potential of being complicated because of IBM’s role as a defense supplier.

GlobalFoundries is based in the U.S., but is owned by investors in Abu Dhabi, which is part of the United Arab Emirates (U.A.E.). IBM is paying the firm $1.5 billion to take over its semiconductor manufacturing operations. IBM says it isn’t cutting back on R&D or its design of semiconductors, but will rely on GlobalFoundries for manufacturing.

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