Intel is reportedly to buy AMD’s GlobalFoundries for the worth of $30 billion

Intel is reportedly to buy AMD’s GlobalFoundries for the worth of $30 billion

According to The Wall Street Journal, the chip maker giant, mainly for PCs and laptops, Intel has been reported to grab another chip manufacturer company, GlobalFoundries, for the deal of $30 billion. To recall, before 2008, Intel and AMD were working together for making the processors of CPUs of PCs and laptops. Since 2008, both the SoC giants depart their paths. After that, both the companies start their own journey for making Silicon Processors. Hence, Intel started making its own chipsets for desktops, while AMD tried its luck in the semiconductor business by making GlobalFoundries Company, and as well as relying on other semiconductor manufacturers for its chipset needs. As per the reports, the deal could be worth the semiconductor manufacturing conglomerate almost 30 billion USD.

As a reminder, GlobalFoundries, one of the largest foundries of the world is controlled and owned by Abu Dhabi’s sovereign fund Mubadala Investment (UAE govt.).  This foundry could be valued approximately at $30 billion, according to the Journal story.

Even though, we can’t just accept and digest the whole story or news from the WSJ, since it is an unclear statement from the news agency. While in the case of GlobalFoundries itself, it refused to comment on the ongoing scenario or you can say rumors. It could also be possible that Intel is negotiating with its parent company AMD instead. Intel also didn’t comment on the platform of Wall Street Journal. However, according to The Verge, a spokesperson of Intel also denied replying to the rumors regarding the company buying foundry.

Almost everyone knows why Intel wanted this foundry. The reason for buying the foundry is simple, Intel wants to ramp up its foundry business. Moreover, there are also rumors that the company is struggling to manufacture chipsets and to fulfill the demands of SoCs around the globe. Therefore, the new Intel CEO Pat Gelsinger, announced in March that their next target and goal is to outsource most of their work to third-party foundries. Furthermore, the CEO of the company told the journalists that his company will be leading in the semiconductor industry after his decisions. Also, he acknowledged the shortage of chips in the world’s market; therefore he aimed to fulfill this gap in a powerful as well as in a meaningful way.

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In the case of outsourcing their manufacturing work, the company will once again compete with its rivals by fulfilling the demands of chipsets. In addition to this, the chipmaker will also generate healthy revenue.

To recall, GlobalFoundries is the number four foundry in the world, as per the reports of TrendForce. It is one of the largest foundries in the world, which accounts for 7 percent of all foundry business in terms of revenue. Due to the above reason, it won’t put Intel on the same footing as giant TSMC or Samsung did.