Intel is reportedly in talks to buy the $30 billion foundry company AMD spun off a decade ago
It’s clear from the WSJ story that the offer isn’t a certainty, and GlobalFoundries outright rejected that it remained in talks with Intel. However it’s possible Intel’s working out with the financial investment firm that owns GlobalFoundries rather, as the WSJ explains. It’s likewise intriguing that the Journal doesn’t have a “no comment” from Intel itself– that’s often a canary to indicate a company did remark, simply off the record or on deep background.
(“We will decline to discuss rumor and speculation,” an Intel spokesperson informed The Verge, though.)
In 2008, chipmakers Intel and AMD took 2 unique paths: Intel kept producing its own chips to maintain complete control, while AMD decided to spin off its semiconductor company as GlobalFoundries, counting on it and other producers to offer the real silicon. Now, The Wall Street Journal is reporting that Intel is aiming to purchase AMD’s previous fabs too, in a deal that might value them at $30 billion.
The Washington Post took a tour of GlobalFoundries’ facility in Malta, NY just last week, if you ‘d like to hear what it’s like.
There’s an apparent reason Intel might desire GlobalFoundries– it’s really increase its foundry business now. In an effort to reverse the struggling business, brand-new Intel CEO Pat Gelsinger revealed in March that the company would no longer go it alone, outsourcing more of its chip production to third-party foundries, agreeing to produce more chips for other companies utilizing its own foundries, and also purchasing new fabs itself. That consisted of a $20 billion investment in brand-new centers in Arizona, however it could take several years for brand-new buildings to get constructed and ramp up.
It sounds like the # 4 foundry in the world (according to TrendForce) may be up for grabs, one that represents 7 percent of all foundry business by profits. That won’t put Intel on the very same footing as a giant TSMC or Samsung (which together represent an estimated 74 percent), but it ‘d be a start.
There’s an apparent reason why Intel might desire GlobalFoundries– it’s actually ramping up its foundry service now., contracting out more of its chip production to third-party foundries, concurring to produce more chips for other companies utilizing its own foundries, and also investing in new fabs itself.