Intel reportedly in talks to buy semiconductor giant GlobalFoundries for $30 billion

[midian182]

Rumor mill: It looks as if another multi-billion-dollar tech acquisition is in the works. Following Nvidia’s $40 billion acquisition of ARM, Intel is reportedly in talks to purchase semiconductor manufacturer GlobalFoundries for about $30 billion.

The Wall Street Journal reports that the talks don’t appear to include GlobalFoundries executives. The US-based company, spun off from AMD in 2008, is owned by Mubadala Investment Co., an investment arm of the Abu Dhabi government.

Intel CEO Pat Gelsinger back in March announced a major strategy shift for Intel with the IDM 2.0 (integrated device manufacturing) strategy. The company’s expansion plans include a $20 billion investment to build two new fabs in Arizona. It also announced the opening of both its current and planned manufacturing capacity to other chipmakers through the launch of Intel Foundry Services. Acquiring GlobalFoundries would be a big part of IDM 2.0.

Largest tech deals in history

Company	Acquisition	Price	Year
Dell	EMC	$64 billion	2015
Avago	Broadcom	$37 billion	2015
IBM	Red Hat	$34 billion	2018
Softbank	ARM Holdings	$31.4 billion	2016
Intel?	GlobalFoundries?	$30 billion?	2021?
Microsoft	LinkedIn	$26.2 billion	2016

TrendForce ranks GlobalFoundries, which has several fabs in the US, as the number four semiconductor manufacturer in the world with seven percent of all foundry business by revenue. It recently announced a $4 billion investment to greatly expanded capacity at its existing chip fabrication plant in Singapore. Rather than embracing the “smaller is better” philosophy, the company focuses on adding new capabilities and features to chips built at larger (12nm and over) transistor sizes.

GlobalFoundries has been reportedly seeking an IPO, something the Intel acquisition would scupper. If, however, the deal doesn’t go ahead, the IPO could still happen later this year.

When asked about the deal, an Intel spokesperson said: “We will decline to comment on rumor and speculation.”

Permalink to story.

https://www.techspot.com/news/90443-intel-reportedly-talks-buy-semiconductor-giant-globalfoundries-30.html

 

[Puiu]

It would be a huge mistake to allow this to happen.

 

[Irata]

No, just please no, particularly if you look at why AMD had to spin off GloFo in the first place.

Imo, it would be preferable if other US companies (maybe a consortium including IC customers like auto) bought GloFo and received subsidies via the Chips for America act to modernize the fabs.

 

[Theinsanegamer]

This would be a disaster for intel, a giant money sink that would suck away resources from their R+D divisions to maintain.

It would also be a disaster for the markets at large. Yet another chip maker off the table, now more businesses would have to rely ont he likes of samsung and TSMC. That's just what we need, MORE integration.

On the other hand this could hasten intel's collapse and restructure, so.......

 

[Bobbydpue]

" Following Nvidia’s $40 billion acquisition of ARM" That hasn't happened yet. It's not a done deal. NVIDIA does not own ARM at this time.

 

[Bobbydpue]

This would be a disaster for intel, a giant money sink that would suck away resources from their R+D divisions to maintain.

It would also be a disaster for the markets at large. Yet another chip maker off the table, now more businesses would have to rely ont he likes of samsung and TSMC. That's just what we need, MORE integration.

On the other hand this could hasten intel's collapse and restructure, so.......

Why would it be a money sink? There are plenty of devices that need silicon especially during a chip shortage. Intel is far from collapsing. I don't know why people keep saying stuff like this. Intel made $77.87 Billion in 2020. They actually made $6 Billion more in 2020 than in 2019. If Intel has $30 Billion to buy Global Founders why do you think they are on their way to collapse. I'm certain Intel knows a lot more about fabricating silicon and most people who give their opinions on the internet.

 

[Austinturner]

I would think competition regulators might have a thing or two to say about that plan.

 

[Avro Arrow]

And the "capitalist free market" gets smaller and less free. This is a clear-cut case in which regulators should reject ANY attempt by Intel to buy GloFo because that is simply Intel eliminating a competitor. If Intel didn't already have a tonne of fabs I wouldn't care but they do so this is clearly an anti-competitive action, something that this article SHOULD be mentioning.

It's clear that Intel hasn't changed for the better one bit since the EC punched it in the nose.

 

[Dimitrios]

Good ole INTEL if you can't compete just cheat or buy companies out.

 

[Dimitrios]

I would think competition regulators might have a thing or two to say about that plan.

That's the part I'm worried about, I believe ( correct me if I'm wrong ) Biden promised to help out INTEL a few months back oddly it it looks like INTEL came to them first which I thought was sketchy.

 

[BadThad]

And the "capitalist free market" gets smaller and less free. This is a clear-cut case in which regulators should reject ANY attempt by Intel to buy GloFo because that is simply Intel eliminating a competitor. If Intel didn't already have a tonne of fabs I wouldn't care but they do so this is clearly an anti-competitive action, something that this article SHOULD be mentioning.

It's clear that Intel hasn't changed for the better one bit since the EC punched it in the nose.

You sure have a love of big government. Are you a communist?

 

[Skjorn]

Why would it be a money sink? There are plenty of devices that need silicon especially during a chip shortage. Intel is far from collapsing. I don't know why people keep saying stuff like this. Intel made $77.87 Billion in 2020. They actually made $6 Billion more in 2020 than in 2019. If Intel has $30 Billion to buy Global Founders why do you think they are on their way to collapse. I'm certain Intel knows a lot more about fabricating silicon and most people who give their opinions on the internet.

Yeah idk. People love to hate Intel cause their chips used to be expensive. I just read for years on these forums "MaMA sUe pAwLeASe sAvE uS fROm InTEl" .. now look.. AMD got the SLIGHTEST edge and they dropped $450 8 core cpus on us but those Intel haters never said **** about it.
I been buying INTC in anticipation of their fab services.

 

[Wereweeb]

You sure have a love of big government. Are you a communist?

Capitalism and big government often go hand in hand.

 

[Avro Arrow]

Capitalism and big government often go hand in hand.

Yup. I can't think of a bigger and more inefficient government than what the USA has. They literally deadlock themselves with that insane filibuster.

What a great way to break a government.

 

[ZedRM]

It would be a huge mistake to allow this to happen.

Agreed! This is a very dumb idea..

 

[Austinturner]

That's the part I'm worried about, I believe ( correct me if I'm wrong ) Biden promised to help out INTEL a few months back oddly it it looks like INTEL came to them first which I thought was sketchy.

I think the US government wants to increase overall US chip manufacturing capacity, helping Intel build new fabs would make sense. Intel buying a competitor does nothing to achieve that goal, it adds no new US capacity…I bet they won’t be very supportive.

 

[BadThad]

Liberalism and big government often go hand in hand.

There, I fixed it for you since it has NOTHING to do with capitalism. Some book reading would help you tremendously.