Intel in talks to buy GlobalFoundries for around $ 30 billion – WSJ

July 15 (Reuters) – Intel Corp (INTC.O) is in talks to buy semiconductor maker GlobalFoundries Inc for around $ 30 billion, the Wall Street Journal reported Thursday, citing people familiar with the matter.

The deal negotiations do not appear to directly include GlobalFoundries, as a company spokesperson told the Journal he was not in talks with Intel, according to the report. (https://on.wsj.com/3yXFQLU)

The talks come as a semiconductor shortage is hampering industries around the world. A deal could help Intel ramp up chip production at a time of peak demand and the company is looking to start producing chips for automakers who have struggled to maintain operations due to severe shortages.

Intel, one of the last companies in the semiconductor industry to design and manufacture its own chips, announced earlier this year that it would increase its advanced chip manufacturing capacity by spending up to $ 20 billion. to invest in factories in the United States.

Intel has announced plans to open its factories to external chip designers as it competes with Taiwanese Semiconductor Manufacturing Co Ltd (2330.TW) and Korean Samsung Electronics Co Ltd (005930.KS).

GlobalFoundries, which is owned by Abu Dhabi sovereign wealth fund Mubadala Investment Co, has a manufacturing presence in the United States, Europe and Asia.

Mubadala is considering a potential list of GlobalFoundries later in the year, Reuters reported in June, citing sources familiar with the matter. (https://reut.rs/2UQD0cK)

GlobalFoundries customers include Advanced Micro Devices Inc (AMD.O), its parent company before it split more than a decade earlier, a relationship that could spark antitrust questions over an Intel deal.

Intel declined to comment, while Mubadala and GlobalFoundries did not immediately respond to Reuters requests for comment.

Report by Nivedita Balu in Bengaluru; Editing by Shounak Dasgupta

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