Another multi-billion dollar acquisition is reportedly on the horizon in the tech industry. Following Nvidia ’s $40 billion acquisition of ARM, Intel is reportedly in talks to acquire microchip maker GlobalFoundries for around $30 billion .
The Wall Street Journal reports that GlobalFoundries executives are not involved in the discussions, and if a deal doesn't go through, the company will move forward with its plans for an initial public offering. The U.S.-based company, which was spun off from AMD in 2008, is owned by Mubadala Investment Co., the investment arm of the Abu Dhabi government in the U.S.
Read also: Will Intel & Apple be the first to use TSMC's 3-nanometer chips?
Intel CEO Pat Gelsingerannounced in March that his goal is for the company to invest to regain a significant position as a microchip maker, a market now dominated by companies from Asia. He also announced the opening of both current and planned production capacity to other chipmakers through the launch of Intel Foundry Services. The acquisition of GlobalFoundries would be a big part of IDM 2.0.
TrendForce GlobalFoundries , which has several fabs in the U.S., as the No. 4 microchip maker in the world, with 7% of all foundry businesses by revenue. It recently announced a $4 billion investmentto significantly expand its existing chip manufacturing facility in Singapore. Rather than embracing the “smaller is better” philosophy, the company is focusing on adding new capabilities and features to chips built on larger transistor sizes (12nm and above).
See also: MSI gaming laptops: They feature 11th generation Intel Core processors
GlobalFoundries was reportedly looking to go public, something that would be eliminated by the Intel acquisition. However, if the deal doesn't go through, the IPO could happen later this year.
An Intel spokesperson, when asked about the deal, said: “We decline to comment on any rumors and speculation.”
Suggestion: Intel: Apple silicon may have an impact on the company's market share
GlobalFoundries is one of the world's largest semiconductor companies and was formed when Intel rival AMD decided to spin off its chipmaking business in 2008. AMD remains a major customer of GlobalFoundries. This year's multi-year deal includes orders for about $1.6 billion worth of microchips.
