Intel makes an offer to purchase GlobalFoundaries for 30 billion US dollars
Intel is rumored to be expanding its manufacturing capability by purchasing US foundry GlobalFoundaries.
According to Wall Street Journal (WSJ), Intel is currently in talks to make its biggest acquisition ever. For an estimated 30 billion US dollars Intel wants to buy GlobalFoundaries, one of the world’s largest semiconductor companies. This company is responsible for as much as 7% of the global foundry market by revenue and is currently making chips for many companies such as AMD, Qualcomm, and NVIDIA.
Since Pat Gelsinger took over the seat of Intel CEO back in February, the company has rapidly begun changing its strategy on chip manufacturing. New CEO announced two new fabs worth nearly 20 billion US dollars to be built in Arizona (US). This initiative is part of Intel’s new IDM 2.0 (Intel’s integrated device manufacturing) strategy.
A deal could value GlobalFoundries at around $30 billion, the people said. It isn’t guaranteed one will come together, and GlobalFoundries could proceed with a planned initial public offering. GlobalFoundries is owned by Mubadala Investment Co., an investment arm of the Abu Dhabi government, but based in the U.S.
— Cara Lombardo and Dana Cimilluca, Wall Street Journal
GlobalFoundaries have recently made a decision to suspend 7nm node production citing unaffordable costs required to make the transition into the more complex node. However, the company has held open the possibility of resuming 7nm operating in the future. The foundry has as many as 10 fabs located in the US, Singapore, and Germany.