Intel is negotiating with GlobalFoundries, Proposed acquisition of $30 billion

by ddos ·

In 2008, Intel and AMD chose two different paths: Intel continued to fully control its own fabs, while AMD split the semiconductor manufacturing business, which is now GlobalFoundries, but still rely on It makes chips for itself. Over the years, it is difficult to say what must be right or wrong. After all, different companies face different problems at different stages and make different choices.

GlobalFoundries IPO

“Industrie: Werk GLOBALFOUNDRIES Dresden, Deutschland” by MWM Energy is licensed under CC BY-NC-ND 2.0

According to the Wall Street Journal report, Intel is seeking to acquire GlobalFoundries, the transaction amount may be $30 billion. People familiar with the matter said that the two sides are still in the early stages of the negotiation, and GlobalFoundries has not completely denied that it is in contact with Intel. Intel also did not deny negotiating with GlobalFoundries, saying it refused to comment on rumors and speculation.

The reason why Intel wants to acquire GlobalFoundries is simple. According to the previously announced IDM 2.0 strategy, it needs to build a world-class Intel foundry service (IFS). In recent months, Intel has continuously sought to expand its production capacity and selected sites to establish new fabs.

GlobalFoundries has fabs in different regions of the world. Although it has decided to withdraw from the research and development of advanced processes in 2018 and only advance to the 12nm process, it is still the world’s fourth-largest foundry with a market share of 7%. Currently, GlobalFoundries is seeking to go public. The original plan is as early as the end of 2021. At the same time, it is also raising funds to expand its production capacity. The $30 billion is also the IPO valuation reported by the media.

Tags: GlobalFoundriesIntel