Intel Is in Talks to Buy Global Foundries for about $30 Billionadmin2019
Intel Corp, plans to buy Global Foundries, which is one of the largest specialists in chip production by overtaking their big customer AMD for about $30 billion. Although, the biggest deal by Intel so far is the purchase of $15.4 billion of Altera Corp.in 2015.
Intel Corporation is an American multinational corporation and technology company headquartered in Santa Clara, California, in Silicon Valley. Intel Corp. engages in the design, manufacture, and sale of computer products and technologies. It delivers computer, networking, data storage, and communications platforms.
Intel Corp. is exploring a deal to buy Global Foundries Inc., according to people familiar with the matter, which is big enough to rate as its largest plan to make more chips for other companies as well as Global Foundries.
GlobalFoundries Inc. is a U.S.-based semiconductor manufacturer headquartered in Malta, New York, United States. GlobalFoundries was created by the divestiture of the manufacturing arm of Advanced Micro Devices. It is owned by Mubadala Investment Company, an investment arm of the Abu Dhabi government, but based in the U.S. It was created when Intel’s rival Advanced Micro Devices Inc. in 2008 decided to create an independent company through the sale or distribution of new shares of their existing business.
A big customer of GlobalFoundaries remains AMD, agreeing to a multiyear, roughly $1.6 billion chip-component supply this year. This could complicate a deal with Intel. It isn’t guaranteed that the $30 billion deal will come together as GlobalFoundaries can still proceed with their pre-planning with their old customers.
Intel’s new chief executive, Pat Gelsinger, said the company would take off a major push to become a chip manufacturer for others, a market dominated by Taiwan Semiconductor Manufacturing Co. With a market value of around $225 billion, this year Intel assured more than $20 billion in investments to expand chip-making facilities in the U.S.
Although Mr. Gelsinger left Intel to run VMware Inc. This time he returned with a bigger promise to make Intel a bigger chip manufacturer for others, a market dominated by Taiwan Semiconductor Manufacturing Company. He vowed in February with his return that he would make Intel more reliable in producing new chips.
Intel, a serial deal maker, in October agreed to sell its flash-memory manufacturing business to South Korea’s SK Hynix Inc. for about $9 billion.
Its biggest deal so far is its $15.4 billion purchase of Altera Corp. in 2015. It agreed to buy Israel-based Mobileye, a maker of driver-assistance systems, for around $14 billion in 2017.
Pic and article source: The Wall Street Journal