IBM has rejected Globalfoundries offer to acquire its chipmaking business, according to reports. The offer presented to IBM by Globalfoundries was reportedly too low and the two sides could not agree on final terms.

Last month, a report circulated that GlobalFoundries was attempting to acquire IBM's chipmaking engineers and intellectual property. IBM, which currently loses $1.5 billion (£900 million, $1.70 billion) on its chipmaking business each year had asked potential bidders for $2 billion (about £1.2 billion, AU$2.28 billion) in April.

It is immediately unclear what offer GlobalFoundries made to IBM. Both companies were not immediately available for comment.

Who is GlobalFoundries?

GlobalFoundries was founded in 2009 after the government of Abu Dhabi purchased the manufacturing facilities of Advanced Micro Devices.

The company, which is based in Santa Clara, Calif., and specializes in the creation of semiconductors, employs more than 13,000 and generates annual revenues of more than $4.5 billion (about £3.0 billion, AU$5.5 billion).

IBM is also reportedly looking to sell its software-defined networking business for $1 billion.