[Hardware] Rumor has it, Intel wants to buy GlobalFoundries

[SougarLord]

 

According to a Wall Street Journal report citing people familiar with the potential purchase, Intel is in talks to buy the GlobalFoundries foundry for roughly $ 30 billion. Intel hasn't confirmed the report, but if true, the plan would intercept GlobalFoundries' widely reported plans for an IPO later this year.

 

The report comes shortly after recent reports that Intel is in talks to buy the RISC-V SiFive chip designer for $ 2 billion. This would subject it to a major restructuring effort under new CEO Pat Gelsinger.

 
Intel could buy GlobalFoundries foundry

Intel's proposed purchase plan comes as it is lobbying the US government for subsidies so it can increase its manufacturing capabilities. He is asking for them to help fund his IDM 2.0 initiative that would end up producing chips for other companies through Intel Foundry Services. They pledged $ 20 billion of their own money to launch that initiative with two factories in Arizona.

 

Acquiring GlobalFoundries would bring in experienced leadership teams and an already healthy third-party foundry business. Although GlobalFoundries dropped out of the race for cutting edge node technology, it has many existing factories of its own in the US GlobalFoundries has been able to maintain contracts with the US government that require some indigenous chip production for some of its military projects. If GLobalFoundries were purchased, Intel would have existing contracts with the US government and they will become a safe bet for government funding.

 

They are currently owned by Mubadala Investment Co, which is owned by the Abu Dhabi government. GlobalFOundries has been widely reported to be seeking an IPO, but those plans were canceled last year. But according to the Wll Street Journal, GlobalFoundries could go ahead with its planned initial public offering if talks with Intel fail.

 

GlobalFoundries' production capacity of next-generation nodes, which are the highest volume engines for most third-party factories, would also fit well with Intel's plans to start offering its manufacturing services to other parties. The deal would dwarf Intel's $ 16.7 billion acquisition of Altera, which was the largest ever. Intel recently sold its NAND and SSD business to SK hynix for $ 9 billion because they were looking to focus on taking on their core competition of making high-profit logic devices.