It is said that Intel is discussing the purchase of Gexin with us $30 billion to enter the OEM market


Tencent technology news on July 16: Intel is exploring the acquisition of global foundries, a chip foundry manufacturer, with a total transaction price of about $30 billion, people familiar with the matter said on Thursday. Intel has yet to confirm the report, but if true, the deal will force global foundries to abandon its planned IPO at the end of this year. So far, Intel has not commented on this.
If Intel acquires global foundries, it will promote the semiconductor giant’s plan to produce more chips for other technology companies, and it will become the largest acquisition transaction since intel was founded. Previously, Intel’s largest acquisition was Altera in 2015, with a total transaction value of $16.7 billion. Intel sold its NAND flash chips and SSD business to sk Hynix for $9 billion because it wanted to focus on manufacturing high profit chips. According to people familiar with the matter, the transaction valued global foundries at about $30 billion. There is no guarantee that the two will come together, and global foundries is still likely to make an IPO as planned.
Global foundries is owned by mubadara investment company, which is the investment arm of the Abu Dhabi government but is headquartered in the United States. Global foundries was formerly the AMD chip manufacturing business. In 2008, Intel and AMD took two completely different paths: Intel continued to manufacture its own chips to maintain complete control; Amd decided to spin off its manufacturing business and set up global foundries to make chips with it and other manufacturers.
Pat Gelsinger, Intel’s new chief executive, said in March that the company would push hard to become a chipmaker for other companies. At present, the global chip OEM market is dominated by Taiwan’s TSMC. As one of the few companies in the global chip industry that design and manufacture chips at the same time, Intel, with a market value of about $225 billion, promised to invest more than $20 billion to expand its chip manufacturing business in the United States this year. Kissinger also said Intel will increase investment in chip manufacturing businesses in the United States and overseas.
Intel’s talks to buy global foundries come as a shortage of chips is holding back global industry. The deal could help Intel boost chip production at a time of peak demand, as it seeks to start producing chips for automakers. Global automakers have been struggling to maintain operations due to a severe shortage of chips.
However, given that global foundries’ existing customers include AMD, this relationship makes Intel likely to face an antitrust investigation when it acquires global foundries. So far, mubadara investment and global foundries have not commented on the report.
It has been previously reported that Intel intends to buy sifive for more than $2 billion. Sifive was founded in 2015. Its main business is to develop risc-v architecture processors. Its employees include several founders of risc-v architecture. The news of Intel’s acquisition of global foundries comes at a time when Intel is lobbying the U.S. government for subsidies to improve its manufacturing capabilities, especially to help fund its IDM 2.0 strategy. The strategy will produce chips for other companies through the new Intel foundry business ifs. Intel has committed $20 billion of its own funds to start the program at two wafer plants in Arizona.
The acquisition of global foundries will be a shot in the arm, especially as it will bring in an experienced leadership team and an already healthy third-party foundry business. Global foundries’ production capacity will also be well matched with Intel’s plan to start providing OEM services to other parties. Although global foundries is known for abandoning competition for cutting-edge nodal technologies, it has a large number of its own Fabs in the United States with impressive capacity. Global foundries has been signing service contracts with the US government for a long time. Some military projects of the US government require some local chip production. As a result, the company’s existing cooperation with the US government has enabled it to secure government funding.
Kissinger has also been touring the European Union for government funding to build a wafer factory in Europe. Intel’s total investment in Europe could reach $100 billion, he said´╝ł Compiled by Tencent technology / Wuji)