IBM Corp is reportedly close to a deal to sell its chip-making business to contract chipmaker Globalfoundries Inc, Bloomberg reported. Globalfoundries is interested in acquiring IBM's engineers and intellectual property, the report said.

Globalfoundries already owns a plant in New York state and a technology joint development project with IBM.

According to reports in April, IBM had asked for $2 billion but potential bidders offered more than $1 billion.