[ad_1]
Text size
Intel has a contracted chip manufacturing operation similar to GlobalFoundries.
yishii9 / Dreamtime
Heavy-duty semiconductor
Intelligence
is in talks to buy chipmaker GlobalFoundries for $ 30 billion, the Wall Street Journal reported Thursday.
Intel stock (ticker: INTC) edged up 0.5% during the extended session. The shares closed 1.3% at $ 55.81 in regular trading; other chip stocks were also down.
Intel declined to comment. GlobalFoundries, formerly owned by rival Intel
Advanced micro-systems,
did not immediately respond to a request for comment from Barron, but a spokeswoman told the Journal the company is currently not in discussions with Intel.
GlobalFoundries, based in the United States, is owned by Global Mubadala Investment, an investment arm of the Abu Dhabi government. The talks appear to be between Intel and Global Mubadala, the Journal reported.
If the deal goes through, it would bolster Intel’s $ 20 billion plans to build its new contract manufacturing unit. The new unit, called Intel Foundry Services, aims to operate like other contract chipmakers and will manufacture chips designed by other companies.
The acquisition, however, would not strengthen Intel’s position against its rival.
Semiconductor manufacturing in Taiwan
(TSM) for the most advanced and complex processors, which account for almost half of Taiwan Semi’s revenue.
Several years ago, GlobalFoundries abandoned its plan to manufacture such advanced chips using extreme ultraviolet lithography, or EUV, technology. The technology is so complex and expensive that even Intel has struggled to perfect the manufacturing. So far, only Samsung Electronics and Taiwan Semi have demonstrated that they can efficiently manufacture chips using EUV technology.
Today, GlobalFoundries uses older technology to make less advanced semiconductors, although chips often have equally important uses. Similar to other semiconductor makers, GlobalFoundries has said it is ramping up production, with a commitment of around $ 4 billion to a new factory it is building in Singapore.
AMD created GlobalFoundries in 2008, but the two companies maintain their ties. AMD has a multi-year agreement to purchase approximately $ 1.6 billion worth of silicon wafers from GlobalFoundries, according to the form AMD has filed with the Securities and Exchange Commission.
If the deal fails, GlobalFoundries could make a first public offering already scheduled for 2022.
Write to Max A. Cherney at [email protected]
[ad_2]
Source link