Intel in talks to buy GlobalFoundries for $30 bn

Intel is in talks to buy semiconductor manufacturer GlobalFoundries for about $30 billion, Wall Street Journal reported.
Intel technology for 5G
Any deal talks don’t appear to include GlobalFoundries directly, as a spokesperson for the company told the Journal it was not in discussions with Intel, according to the report.

A deal could help Intel ramp up production of chips at a time demand is at its peak and the company is looking to start producing chips for car makers that have struggled to keep operations running due to severe shortages.

Intel, one of the last companies in the semiconductor industry that both designs and manufactures its own chips, said earlier this year it would expand its advanced chip manufacturing capacity by spending as much as $20 billion to invest in factories in the U.S.

Intel aims to open its factories to outside chip designers, as it competes with Taiwan’s Semiconductor Manufacturing (TSMC) and Korea’s Samsung Electronics.

GlobalFoundries, which is owned by Abu Dhabi sovereign wealth fund Mubadala Investment Co, has a manufacturing footprint across the U.S., Europe and Asia.

Mubadala is looking at a potential listing of GlobalFoundries later in the year, Reuters reported in June.

GlobalFoundries’ customers include Advanced Micro Devices Inc (AMD), its parent company before it was spun off more than a decade earlier, a relationship that could spark antitrust questions about an Intel deal.