Technology

Intel Wants to Acquire GlobalFoundries

Intel’s plans to set up a large factory in Europe were revealed recently. According to a new report from The Wall Street Journal that emerged recently, the company is showing interest in acquiring GlobalFoundries (GF), with a rather unexpected breakthrough. The report states that the acquisition negotiations are ongoing and the acquisition could take place for $30 billion at a valuation 50% higher than the recently determined public offering price for the foundry.

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It’s fair to say that this move was an unexpected breakthrough, as Intel recently said it would more importantly consider leveraging third-party foundries for its products. The current announcement appears to be part of Intel’s new integrated device manufacturing or IDM 2.0 strategy. But there is another side to this strategy that Intel is keen to expand on its foundry capabilities, which could be the basis for it.

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GF was once a segment of Intel’s biggest competitor, AMD. However, the company cut ties with GF in order to survive and reduce costs. The company that currently owns 100% of GF’s rights is Abu Dhabi-based Mubadala Investment Co. However, there is still a supply agreement between AMD and GF.

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Finally, let’s state that the acquisition process in the middle of GlobalFoundries with Intel has not been officially announced yet, but we expect official statements to come in the coming days.

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