Friday, Jul 16, 2021, 18:48 Economy

Massive Acquisition? Intel Looks To Buy GlobalFoundries For 30 Billion US$

With an expensive push onwards (a last ditch effort, some might even say), Intel hopes to bring itself into calmer waters. It's well known that the company has had issues on multiple fronts for a while now, having had production problems for years now and now being affronted by competition on all sides. Apple's M1 chip outclasses almost anything and everything that Intel has to offer at the moment and in the PC world, AMD is steadily encroaching upon Intel's former position as the dominant force in the market. TSMC has also given Intel a good view of its taillights – while Nvidia has made several advancements in the AI sector while Intel has remained asleep. According to a new report now, Intel is now planning on laying down 30 billion US$ in order to purchase the AMD and ATIC founded semiconductor manufacturer GlobalFoundries. Previously, Intel had already announced intentions to invest 20 million US$ in the expansion of its current infrastructure.

No Agreement Has Been Met Yet
The talks are currently between Intel and GlobalFoundries' owner, Mudabala Investment Co., and according to The Wall Street Journal – GlobalFoundries' own board of executives are not involved in the talks. In the eventuality that no agreement between the two parties is met, then Mudabala Investment Co. will continue with its previous plan to go public with GlobalFoundries next year. If, on the other hand, the two parties are able to come to an agreement, then the acquisition would be the biggest in Intel company history. With Intel's current market value of around 225 billion US$, 30 billion US$ is already a large number.

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Satisfying Special Requests From Customers
More than anything, Intel hopes to solve a major current problem – the fact that the company currently plays absolutely no role in the world of contract production. Whereas other companies have specialized in custom orders for customers, Intel only presents standard solutions. The company's new CEO, Pat Gelsinger, wants to turn Intel into a chip manufacturer for other providers. Acquiring GlobalFoundries wouldn't magically solve Intel's architectural problems with chip development and production, however, it would be a large step in the direction of TSMC's successful business model. The aforementioned billion-dollar investment would allow Intel to see more expansion and better handle contract production.

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