Intel is Looking to Buy AMD Supplier GlobalFoundries for $30 Billion Opening Supplier Options Outside TSMC
(Photo : Screenshot From Commons.Wikipedia.org) Intel is Looking to Buy AMD Supplier GlobalFoundries for $30 Billion Opening Supplier Options Outside TSMC

Intel is now looking to buy AMD's supplier GlobalFoundries for a whopping $30 billion while opening its supplier options outside of the popular TSMC. Reports cite people familiar with the particular matter.

Intel in Talks to Buy GlobalFoundries

According to The Wall Street Journal, citing individuals that are familiar with the situation, Intel Corp is already in talks to buy GlobalFoundries Inc for a whopping $30 billion. As of the moment, any talks of the potential deal don't actually appear to directly include GlobalFoundries.

A spokesperson for the company's statement to the Journal noted, however, that they were not in discussion for Intel. Talks come as a whole semiconductor shortage is hobbling industries all around the globe.

Deal Could Help Give Solution to the Global Chip Shortage

A particular deal could then help Intel ramp up production of its chips at a harsh time when demand is soaring at its peak. The company is only yet looking to start production of chips for car makers that have been struggling to keep up with their operations due to the severe widespread shortages which is expected to last until 2023.

Intel is one of the last companies in the whole semiconductor industry that does both the designing and the manufacturing of its very own chips. It also stated earlier this year that it would expand its more advanced chip manufacturing capacity by spending as much as $20 billion in order to invest in factories in the United States.

Intel vs TSMC and Samsung

According to Reuters, Intel stated that it intended to open up its factories to outside chip designers. This is as it competes directly with Taiwan's Semiconductor Manufacturing Co Ltd. or more popularly known as TSMC. Aside from TSMC, Intel is also competing with Korea's Samsung Electronics Co Ltd or otherwise known as Samsung.

GlobalFoundries is owned by Mubadala Investment Co, Abu Dhabi's sovereign wealth fund, and has a manufacturing footprint spread across US, Europe, and of course, Asia. Reuters also reported that Mubadala is looking at a full potential listing of GlobalFoundries later this 2021 while citing sources familiar with the particular matter.

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GlobalFoundires and AMD

GlobalFoundries' customers include one of the massively popular electronics in the industry, Advanced Micro Devices Inc or AMD. AMD was actually GlobalFoundries' parent company just before it was then spun off about over a decade earlier, a relationship that would spark antitrust questions about a particular Intel deal. Once upon a time, AMD partnered with GlobalFoundries and Samsung to manufacture chips.

Intel also declined to comment, according to the report by Reuters, while Mubadala and GlobalFoundries did not give any immediate response to the request for a comment. As of the moment, GlobalFoundries is also the known supplier for AMD, its once parent company. If the deal does push through, we'll have to see what the effect will have on Intel and AMD which are currently competing for CPUs.

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Written by Urian B.

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