GlobalFoundries shoots down Intel buyout rumor, will move ahead with IPO

Shawn Knight

Posts: 13,429   +132
Staff member
Recap: Intel might not be buying GlobalFoundries after all. Word around the water cooler last week suggested Intel was in talks to buy semiconductor manufacturer GlobalFoundries for roughly $30 billion. But, in talks with who, specifically? The rumor also came with an interesting asterisk – that GlobalFoundries executives didn’t appear to be involved.

In a follow up from Bloomberg, that last nugget has seemingly been confirmed. GlobalFoundries CEO Tom Caulfield told the publication that there was “nothing there in that discussion.” Instead, the chipmaker is moving forward with plans for an initial public offering, with Caulfield adding that “you can expect a lot of speculation to take place.”

GlobalFoundries is ranked as the fourth largest semiconductor manufacturer in the world in terms of revenue generated, behind TSMC, Samsung and UMC, in that order. The company once tried to compete on the leading edge but lost a significant amount of money and elected to do business on older nodes. That’s proven to be a wise move, especially in the wake of the pandemic and chip shortage.

Of course, just because Intel hasn’t approached GlobalFoundries owner Mubadala Investment Company about the acquisition doesn’t mean they won’t put an offer on the table, and it doesn’t mean Mubadala wouldn’t entertain it or even take it. At the end of the day, money talks, and if there’s enough of it, most will walk off with it.

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mbrowne5061

Posts: 1,904   +1,105
This acquisition really would make no sense. Intel already has foundries and GlobalFoundries (as the article notes) doesn't deal in the latest tech, and they do not have the demand to justify buying another company just for their facilities and employees. Only reason Intel would want them for is if they want a piece of the low-end/old-end chip business, which isn't really Intel's MO.

Instead, I wouldn't be surprised if it was really AMD who approached them with a buyout offer, so that they can finally get their own foundries. Then they would no longer be reliant on TSMC for production, nor would they need to compete with the likes of nVidia and Samsung for production bandwidth at TSMC facilities.
 

Bulllee

Posts: 214   +136
This acquisition really would make no sense. Intel already has foundries and GlobalFoundries (as the article notes) doesn't deal in the latest tech, and they do not have the demand to justify buying another company just for their facilities and employees. Only reason Intel would want them for is if they want a piece of the low-end/old-end chip business, which isn't really Intel's MO.

Instead, I wouldn't be surprised if it was really AMD who approached them with a buyout offer, so that they can finally get their own foundries. Then they would no longer be reliant on TSMC for production, nor would they need to compete with the likes of nVidia and Samsung for production bandwidth at TSMC facilities.
Well all I can say is a good comment.
You read it and so did I.
 

HardReset

Posts: 1,239   +894
Instead, I wouldn't be surprised if it was really AMD who approached them with a buyout offer, so that they can finally get their own foundries. Then they would no longer be reliant on TSMC for production, nor would they need to compete with the likes of nVidia and Samsung for production bandwidth at TSMC facilities.
No. AMD sold all their fabs to GlobalFoundries. AMD won't be buying any of them back.
 

trparky

Posts: 944   +1,004
You must resist the dark side.

Instead, I wouldn't be surprised if it was really AMD who approached them with a buyout offer, so that they can finally get their own foundries. Then they would no longer be reliant on TSMC for production, nor would they need to compete with the likes of nVidia and Samsung for production bandwidth at TSMC facilities.
AMD used to have Global Foundries as part of themselves many years ago, they spun them off and they (AMD) became a foundry-less silicon provider.
 

Irata

Posts: 1,659   +2,782
I‘d really love to see GloFo being taken over by US and European investors and then getting a nice cash injection via the Chips for America act, maybe even from the EU.
 

mbrowne5061

Posts: 1,904   +1,105
No. AMD sold all their fabs to GlobalFoundries. AMD won't be buying any of them back.
Was that back when AMD was trading around $2/share, and it really was make-or-break with the launch of Ryzen? Genuine question, I can't recall.
If that sale happened back when AMD was in much more dire economic straits, it is possible they may be interested in reacquiring the old facilities - provided they can be upgraded to the latest nodes, in a fiscally responsible way.