Intel considering GlobalFoundries acquisition: report

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Intel considering GlobalFoundries acquisition: report
Pat Gelsinger (Intel)

Intel is looking at acquiring GlobalFoundries in a move that would accelerate its plans to manufacture more chips for other companies, according to The Wall Street Journal.

The Journal reported the deal could value GlobalFoundries at around US$30 billion, according to unnamed people the Journal said were familiar with the matter.

When contacted by CRN USA, an Intel spokesperson said via email that the company “declines to comment on rumours and speculation.”

GlobalFoundries spokespeople did not respond to a CRN request for more information by press time.

Intel’s new CEO Pat Gelsinger (pictured) in March said that Intel is planning to increase its use of external foundries to produce a range of Intel products. He also said that Intel will significantly expand its manufacturing operations and create chips for other companies.

One of those other companies could be Intel rival AMD.

AMD remains a major customer of GlobalFoundries. AMD and GlobalFoundries in May signed an agreement to extend GlobalFoundries’ capacity commitment and wafer pricing to AMD, and set new annual wafer purchase targets for the years 2022, 2023 and 2024, with AMD pre-paying certain amounts for those wafers in 2022 and 2023, according to an AMD SEC filing.

Intel has committed about US$20 billion to invest in two new fabs, or chip fabrication plants, in Arizona.

The move to increase Intel’s chip manufacturing capabilities, along with the potential acquisition of GlobalFoundries, comes at a time when the IT industry, and indeed many other industries including automobile manufacturing, are suffering from a chip shortage.

At the same time, the US government is looking to invest in helping chip makers invest in U.S.-based manufacturing capabilities as a prevent China-based companies from gaining too much control of this critical market.

GlobalFoundries was originally the manufacturing arm of AMD, and founded in early 2009 when AMD sold a majority stake to the Advanced Technology Investment Company, part of the Emirati state-owned Mubadala Investment Company. AMD in early 2012 sold its final stake in the company to ATIC.

GlobalFoundries in June broke ground on a new fab in Singapore in partnership into which it has committed an investment of over US$4 billion.

 

This article originally appeared at crn.com

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