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In 2008, chipmakers Intel and AMD took two separate paths: Intel continued to manufacture its own chips to maintain full control, while AMD decided to split its semiconductor business under the name GlobalFoundries, relying on it and other manufacturers to supply the real silicon. Now, The Wall Street Journal Intel reports that Intel is also seeking to take over AMD’s old factories, in a deal that could value them at $ 30 billion.
It is clear from the WSJ history that the deal is not a sure thing, and GlobalFoundries has categorically denied that it was in talks with Intel. But it’s possible that Intel is negotiating with the investment firm that owns GlobalFoundries instead, as the WSJ points out. It is also intriguing that the Newspaper does not have a “no comment” from Intel itself – sometimes it is a canary to indicate a company did comment, just in private or in the deep background.
(“We will decline to comment on rumors and speculation,” an Intel spokesperson said The edge, But.)
There’s an obvious reason Intel might want GlobalFoundries – it’s currently ramping up its foundry business now. In an attempt to turn the struggling company around, Intel’s new CEO Pat Gelsinger announced in March that the company would no longer go it alone, outsourcing more of its chip production to third-party foundries, agreeing to to produce more chips for other companies using its own foundries and also investing in new factories. That included a $ 20 billion investment in a new facility in Arizona, but new building construction and ramp-up could take many years.
Meanwhile, it looks like the No.4 foundry in the world (according to TrendForce) is up for grabs, the one that accounts for 7% of all foundry business in terms of turnover. It won’t put Intel on the same footing as a giant TSMC or Samsung (which together account for around 74%), but it would be a start.
The Washington Post took a tour of GlobalFoundries’ facilities in Malta, NY last week, if you’d like to hear what it is.
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