Intel in talks to acquire GlobalFoundries in $30bn deal
However neither party has officially acknowledged claims
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Chip giantIntelis reportedly eyeing up a deal to acquire GlobalFoundries, in a move that would be a shot in thearmof the semiconductor giant’s plan to fabricatechips for external clients.
GlobalFoundries, which came into being as a result ofIntelrivalAMD’s decision to spin off its own semiconductor manufacturing business back in 2009, operates a number of chip foundries around the world.
The acquisition, if completed, could help Intel boost its recently announcedIntel Foundry Services (IFS)division, which it hopes to use as a means to increase its foothold in the market.
According to recent estimates by the US-based Semiconductor Industry Association, around 75% of global chip manufacturing capacity lies in East Asia, with Taiwan’s TSMC and South Korea’sSamsungthe dominant players.
Manufacturing push
Intel is alreadypumping billions of dollarsto upgrade and create new fabs in the US, and is alsolobbying the EUwith a multi-billion dollar to help it double its semiconductor production by 2030.
The investments are putting into action Intel’s new IDM 2.0 strategy, an overhauled take on its integrated device manufacturing (IDM) model, which CEO Pat Gelsinger announced earlier this year.
Reporting on the talksbetween Intel and GlobalFoundries, theWall Street Journalestimates the estimated $30 billion acqusition would be Intel’s biggest to date.
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However, GlobalFoundries has denied it was in talks with Intel, leadingWSJto speculate that the Santa Clara-based company may instead be negotiating directly with Mubadala Investment Co., the US-based owners of GlobalFoundries.
With almost two decades of writing and reporting on Linux, Mayank Sharma would like everyone to think he’sTechRadar Pro’sexpert on the topic. Of course, he’s just as interested in other computing topics, particularly cybersecurity, cloud, containers, and coding.
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