According to a report Wall Street Journal According to people familiar with the matter, Intel is negotiating to acquire GlobalFoundries for approximately US$30 billion. Intel has not confirmed the report, but if the report is true, the plan will block GlobalFoundries’ widely reported IPO plan later this year. We contacted Intel about the report, and the company responded that it does not comment on rumors and speculation.
The news comes after a recent report that Intel is working with Acquired SiFive, a RISC-V chip designer, for US$2 billion Because it went through Major restructuring efforts In the new Pat Gilsinger.
While Intel’s acquisition plan was rumored, it lobbied the US government to provide subsidies to increase its manufacturing capabilities, especially to help fund its manufacturing capabilities. IDM 2.0 The plan will produce chips for other companies through the newly established Intel Foundry Service (IFS). Intel has pledged its own funds of US$20 billion to start the program at two wafer fabs in Arizona.
The acquisition of GlobalFoundries will immediately inject a boost into the plan, especially because it will bring an experienced leadership team and an already healthy third-party foundry business. The production capacity of GlobalFoundries’ trailing edge node is the largest promoter of most third-party fabs, and it is also in line with Intel’s plan to start providing manufacturing services to other parties.
Although GlobalFoundries abandoned the competition for leading node technology, it has a large number of existing wafer fabs in the United States, and its production capacity is impressive. GlobalFoundries has long signed contracts with the US government, which requires the production of certain local chips for some of its military projects. Therefore, the company’s existing cooperation with the US government makes it a popular candidate for government funding.
GlobalFoundries is AMD’s former generation factory, headquartered in the United States. The company is currently owned by Mubadala Investment Corporation, the investment arm of the Abu Dhabi government. According to reports, GlobalFoundries is seeking an IPO, but last year shelved its plans during the pandemic turmoil.However, according to The Wall Street Journal, If negotiations with Intel fail, GlobalFoundries may advance its planned IPO.
Proposed transaction will dwarf Intel Acquired Altera for USD 16.7 billion, This is by far the largest.Intel recently Sold its NAND and SSD business to SK Hynix for USD 9 billion Because it hopes to focus on the core competitiveness of manufacturing high-profit logic devices.
However, Intel’s transactions with GlobalFoundries will definitely face strict regulatory scrutiny, especially in tensions related to the US-China trade war.Intel CEO Pat Gelsinger also visited the entire European Union to gain support Government funding to build a fab there, Saying that the company’s total investment in Europe may reach $100 billion.