According to sources the Wall Street Journal (WSJ) explores Intel Corp. a deal to buy GlobalFoundries for $ 30 billion. According to the newspaper, this will give tailwinds to Intel’s plans to make chipsets for other technology companies. The rumor has not been confirmed by Intel.
The talks on an agreement allegedly do not directly concern GlobalFoundries, as a spokesperson from the company has told WSJ that they are not in talks with Intel. The company is owned by Ubadala Investment Co., an investment fund funded by the Abu Dhabi authorities. According to the article, the acquisition could affect GlobalFoundry’s reported plans to go public this year.
Intel plans
The rumored acquisition falls into an overall strategy where Intel wants to strengthen its own production capacity. Intel has previously announced that they will build two new processor plants in Arizona in the United States. This has happened after Intel’s new boss Pat Gelsinger presented plans for Intel to produce semiconductor products for other companies as well, as well as strengthen its own production.
GlobalFoundries was formed in 2008, when Intel’s rival Advanced Micro Devices, also known as AMD, decided to demerge the company’s chip production. AMD is still a major customer of GlobalFoundries, which could complicate an acquisition of Intel.
