Intel CEO Pat Gelsinger has pledged to restore the firm to its dominant role in computer processors
is exploring a deal to acquire semiconductor
manufacturer GlobalFoundries, the Wall Street Journal reported, citing people familiar with the matter.
Closely held GlobalFoundries, controlled by Abu Dhabi’s sovereign fund Mubadala Investment, could be valued at about $30 billion, the Journal reported. The deal isn’t guaranteed and GlobalFoundries — which came into being as a result of Intel
rival AMD’s decision to spin off its own semiconductor
manufacturing business back in 2009 — may continue to pursue an initial public offering, the paper said, adding that the talks don’t appear to include GlobalFoundries itself. A spokesperson for Santa Clara, California-based Intel
declined to comment on the report, and GlobalFoundries didn’t immediately respond to a request for comment.
Any bid for GlobalFoundries would buttress Intel’s ambitious plan to regain its once unmatched lead in chip production. Intel CEO Pat Gelsinger, who took the top job in February, has pledged to restore the company to its dominant role in manufacturing and computer processors after losing ground to Taiwan Semiconductor
Manufacturing and others. He’s also moving to take on those rivals directly by opening the doors of Intel’s plants to other chipmakers, including competitors, and has said he’ll spend heavily to build new factories specifically to act as foundries that make chips for others.
“We’re going to be leaders in the market, and we’re going to satisfy the new foundry customers,” Gelsinger told journalists after taking over as CEO. “Because the world needs more semiconductors, and we’re going to step into that gap in a powerful and meaningful way.”
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.