Intel to scoop up GlobalFoundries for $30 billion?

Posted on Friday, Jul 16 2021 @ 11:23 CEST by Thomas De Maesschalck
INTC
Earlier this year, rumors popped up about GlobalFoundries preparing a $30 billion IPO. For several years, there have been rumors that Mubadala Investment Co., the Abu Dhabi-based sovereign fund that owns GlobalFoundries, is looking at options. Now there's an interesting turn of events as WSJ reports Intel is taking a deep look at GlobalFoundries.

Will Intel buy AMD's old fabs?

GlobalFoundries largely consists of AMD's former manufacturing arm, the factories from Chartered Semiconductor, and the chip unit from IBM. Initially, GlobalFoundries tried to compete in the cutting-edge foundry market but over the years the foundry shifted its focus to providing a mix of more mature and specialist nodes as it could not keep up with TSMC and Samsung.

A deal to takeover GlobalFoundries could be valued around $30 billion, which would make it Intel's largest acquisition ever.

GlobalFoundries denied it's in discussions with Intel, which suggests Intel is talking exclusively to Mubadala. Buying GlobalFoundries would bolster Intel's foundry capabilities, which is something new CEO Pat Gelsinger is very interested in. Despite GlobalFoundries' struggles, for the market as a whole this could be bad news as it means even more semiconductor foundry capacity is concentrating in the hands of just three major players.


About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.



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