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Intel looking to buy GlobalFoundries for $30 billion?
US chipmaker Intel is reportedly in talks to acquire semiconductor manufacturer GlobalFoundries for some USD 30 billion, reports the Wall Street Journal citing sources familiar with the matter.
Intel has previously stated that it intended to launch a massive investment push to increase its capacities, and also become a major provider of foundry capacity in the U.S. as well as Europe. The company said in March this year that it plans to invest more than USD 20 billion to expand its US operations with two new fabs in Arizona.
The sources told WSJ that there isn’t any guarantee that any deal will materialize and that GlobalFoundries could proceed with a planned IPO. GlobalFoundries’ owner, Mubadala Investment, a US based investment arm of the Abu Dhabi government, is according to a Reuters report from June looking to take the manufacturer public.
However, a spokesperson for GlobalFoundries have denied any direct discussion with Intel, the report states.
An interesting note in all of this is that GlobalFoundries was created by the divestiture of the manufacturing arm of Advanced Micro Devices (AMD), and that AMD still is a major customer of GF – a relationship which which could potentially raise antitrust questions about a possible Intel deal.
Intel declined to comment when approached by Reuters.
Update as per the 20th of July: In an interview with Jon Fortt from CNBC, GlobalFoundries’ CEO Tom Caulfield sets the record straight regarding the Wall Street Journal’s report of a potential USD 30 billion acquisition by Intel; “There’s nothing to that story”.
Update as per the 20th of July: In an interview with Jon Fortt from CNBC, GlobalFoundries’ CEO Tom Caulfield sets the record straight regarding the Wall Street Journal’s report of a potential USD 30 billion acquisition by Intel; “There’s nothing to that story”.
