Intel in Talks To Buy GlobalFoundries for $30 Billion: Report

According to a report from the Wall Street Journal citing people familiar with the matter, Intel is in talks to buy GlobalFoundries for roughly $30 billion. Intel has not confirmed the report, but if true, the plan would intercept GlobalFoundries’ widely-reported plans for an IPO later this year. We reached out to Intel about the report and the company responded that it does not comment on rumors and speculation.

The news comes on the heels of recent reports that Intel is in talks to buy RISC-V chip designer SiFive for $2 billion as it undergoes a major restructuring effort under new CEO Pat Gelsinger. 

Intel’s rumored buy-out plan also comes as it lobbies the US government for subsidies to boost its manufacturing capabilities, particularly to help fund its IDM 2.0 initiative that will find it producing chips for other companies through a newly-formed Intel Foundry Services (IFS). Intel has pledged $20 billion of its own money to kick-start that initiative with two fabs in Arizona.

Acquiring GlobalFoundries would be an immediate shot in the arm for that initiative, particularly because it would bring in experienced leadership teams and an already-healthy third-party foundry business. GlobalFoundries’ production capacity of trailing-edge nodes, which are the largest volume movers for most third-party fabs, would also fit well with Intel’s plans to begin offering its manufacturing services to other parties.