Sections

ideals
Business Essentials for Professionals

Intel In Negotiations With GlobalFoundries For A Possible Acquisition Worth About $30 Billion - WSJ


07/16/2021


Intel In Negotiations With GlobalFoundries For A Possible Acquisition Worth About $30 Billion - WSJ
According to a report published by the Wall Street Journal on Thursday quoting sources familiar with the matter, negotiations for acquiring semiconductor manufacturer GlobalFoundries Inc are being held by Intel Corp. The deal could be worth about $30 billion.
 
According to the report, a spokesperson for GlobalFoundries Inc told the Journal that it was not in discussions with Intel as any deal talks do not appear to include the chip making company directly.
 
The report of such negotiations for an acquisition comes at a time when a number of industries around the globe is facing production issues because of a global semiconductor shortage. If the acquisition goes through, it could help Intel to increase its production capacity for chips at a time chip demand globally is at its peak. The company too is currently reported to be looking out for beginning to make chips for car makers – many of which have been forced to temporarily hold up production because of the severe global shortages of chips.
 
Intel is one of the very few companies that exist in the world that both designs and manufactures its own chips and earlier this year the company had said that it would expand its advanced chip manufacturing capacity with an investment of as much as $20 billion for its factories in the United States.
 
Faced with severe competition from Taiwan's Semiconductor Manufacturing Co Ltd and South Korea's Samsung Electronics Co Ltd, the company also plans that its factories would be opened up for outside chip designers, Intel has said.
 
Currently owned by Abu Dhabi sovereign wealth fund Mubadala Investment Co, currently GlobalFoundries has chip manufacturing units across the United States, Europe and Asia.
 
According to reports published earlier in June, a potential listing of GlobalFoundries is being contemplated by Mubadala for later in the year.
 
Advanced Micro Devices Inc (AMD) is one of the major customers of GlobalFoundries. AMD was the parent company of GlobalFoundries before it was spun off into a separate entity more than a decade ago. According to analysts, this relationship could induce antitrust questions about the contemplated acquisition deal.
 
No comments on the report of acquisition were available from Intel as well as Mubadala and GlobalFoundries.
 
(Source:www.wsj.com)