Behind The Intel-GlobalFoundries Rumor
A Wall Street Journal report that Intel is looking to buy GlobalFoundries has sparked discussions across the industry. But what exactly this would mean, and why now versus a couple years ago, needs some context.
There are layers upon layers of irony behind this would-be deal, and it dates back decades to some rather famous encounters. Consider former AMD CEO Jerry Sanders’ 1991 comment that “real men have fabs.” (This was a reference to a best-selling book about our macho culture entitled, “Real Men Don’t Eat Quiche.”) At the time, TSMC was a minor player in chip manufacturing, and chipmakers that outsourced their manufacturing were at a competitive disadvantage because they had to wait for silicon to come back before making changes to a design. Commercial EDA tools were still in their infancy. DFM/DFY/DFT tools didn’t exist yet. And Sanders apparently had no idea just how fundamentally things were about to change.
Intel Exploring GlobalFoundries Buy In Potential $30B Deal: Report
The move would give a huge boost to Intel’s plans to increase chip manufacturing capabilities both for its own use and for third parties at a time when the world is suffering from an acute chip shortage and the U.S. government is pushing to bring chip manufacturing to the U.S. By Joseph F. Kovar July 15, 2021, 07:58 PM EDT
Intel is looking at acquiring GlobalFoundries in a move that would accelerate its plans to manufacture more chips for other companies, according to The Wall Street Journal.
The Journal reported the deal could value GlobalFoundries at around $30 billion, according to unnamed people the Journal said were familiar with the matter.
Intel is looking at acquiring GlobalFoundries in a move that would accelerate its plans to manufacture more chips for other companies, according to The Wall Street Journal.
The Journal reported the deal could value GlobalFoundries at around US$30 billion, according to unnamed people the Journal said were familiar with the matter.
When contacted by CRN USA, an Intel spokesperson said via email that the company “declines to comment on rumours and speculation.”
GlobalFoundries spokespeople did not respond to a CRN request for more information by press time.
Intel’s new CEO Pat Gelsinger (pictured) in March said that Intel is planning to increase its use of external foundries to produce a range of Intel products. He also said that Intel will significantly expand its manufacturing operations and create chips for other companies.
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