Intel in talks to buy GlobalFoundries for about $30 billion – Wall Street Journal

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The Intel Tiger Lake chip is demonstrated at an Intel press conference during CES 2020 in Las Vegas, Nevada, US, January 6, 2020. REUTERS / Steve Marcus / File Photo

July 15 (Reuters) – Intel is in talks to buy semiconductor maker GlobalFoundries for about $30 billion, the Wall Street Journal reported on Thursday, citing people familiar with the matter.

It does not appear that any deal talks involve GlobalFoundries directly, and a company spokesperson told the newspaper it had not been in discussions with Intel, according to the report. (https://on.wsj.com/3yXFQLU)

The talks come as a shortage of semiconductors is causing industries to falter around the world. The deal could help Intel ramp up chip production at a time when demand is at its peak and the company looks to start producing chips for automakers that have struggled to keep operations running due to severe shortages.

Intel, one of the last companies in the semiconductor industry to design and manufacture its own chips, said earlier this year that it would expand its advanced chip manufacturing capacity by spending up to $20 billion to invest in factories in the United States.

Intel said it intends to open its factories to outside chip designers, as it competes with Taiwan Semiconductor Manufacturing Co., Ltd. (2330.TW) and Korea’s Samsung Electronics Co., Ltd. (005930.KS).

Owned by Abu Dhabi’s sovereign wealth fund Mubadala Investment Company, GlobalFoundries has a manufacturing footprint across the United States, Europe and Asia.

Reuters reported in June, citing people familiar with the matter, that Mubadala was considering a possible listing of GlobalFoundries later in the year. (https://reut.rs/2UQD0cK)

GlobalFoundries’ clients include Advanced Micro Devices Inc (AMD.O), the parent company more than a decade ago, a relationship that could raise antitrust questions about the Intel deal.

Intel declined to comment, while Mubadala and GlobalFoundries did not immediately respond to Reuters requests for comment.

(Nivdita Balu reports in Bengaluru); Edited by Shunak Dasgupta

Our Standards: Thomson Reuters Trust Principles.

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