Intel to Buy GlobalFoundries for $30 Billion

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The American chip company Intel is in talks about a takeover of its peer GlobalFoundries in a deal worth 30 billion dollars.

 

That’s what insiders say to the business newspaper The Wall Street Journal. Intel’s largest-ever acquisition should help the company strengthen its position in the global chip market.

GlobalFoundries is a spin-off of that other chipmaker, AMD. The company is currently owned by the Abu Dhabi sovereign wealth fund Mubadala Investment. It is said to be working on an IPO in New York, but sources say Mubadala and Intel talk about taking over GlobalFoundries. However, the chip company itself would not be involved in those negotiations and denies the newspaper that there are talks. A deal is, therefore, far from certain.

Intel has expressed its ambition to become the leading player in the global chip industry again. However, the company has lost ground to Taiwanese TSMC and South Korean Samsung Electronics in recent years. Intel, led by CEO Pat Gelsinger, has announced that it will allocate $20 billion this year to the construction of two new factories in the US state of Arizona and also plans to build more factories elsewhere in the world. Intel’s market value is approximately $225 billion.

GlobalFoundries makes chips designed by other companies, just like TSMC. However, Intel also wants to play an essential role in the so-called foundry market. Such chips are used, for example, by large technology companies such as Apple, Nvidia and Amazon.

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