According to information from Wall Street Journal, Intel is in talks to buy semiconductor company GlobalFoundries for $30 billion. The acquisition is part of a strategy by the American company to manufacture and sell chips to third parties and boost production at a time when the global shortage of semiconductors is affecting a range of industrial goods - from cars to smartphones.
The deal, the report says, is still in its early stages, with GlobalFoundries planning an IPO in the coming months. Market analysts say that despite the high investment value, Intel's purchase of the semiconductor company would give the company a broad set of manufacturing capabilities for the future.
“GlobalFoundries has specialized technologies and processes in 5G radio frequency, IoT [internet of things] and automotive. With it, Intel would become what I call a 'full-stack supplier' that can offer everything to the customer,” Patrick Moorhead, an analyst at Moor Insight & Strategies, who researches the semiconductor industry, explained to TechCrunch.
Intel CEO Pat Gelsinger hinted in March that Intel intends to increase its chip manufacturing. The American company plans to spend over US$20 billion to build two processing plants in Arizona, in the southwestern United States.
Investors approve acquisition
GlobalFoundries is currently owned by Mubadala Investment Company, a holding company of the Abu Dhabi monarchy that manages, among other companies, Piaggio (a luxury car manufacturer) and OMV (a major oil company in Central Europe). The company was spun out of the chip division of Intel's rival AMD in 2009 and is headquartered in New York, United States. If Intel's purchase of the semiconductor company goes through, investors expect the company's shares to rise by 1,59%.
Values in the chip industry are never small, and so it's likely that negotiations will take some time to conclude. Last year, for example, Nvidia incorporated Arm for a mere $40 billion.
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