Intel Acquiring GlobalFoundries?
GlobalFoundries is one of the world’s top semiconductor manufacturers. The company builds and operates foundries, which are factories contracted by semiconductor companies to build chips, CNBC notes. The foundries are in extremely high demand amid continued chip shortages for cars, consumer electronics and more.
The chip shortages surfaced late in the coronavirus pandemic because buyers underestimated chip demand amid economic recoveries worldwide.
GlobalFoundries is the largest U.S.-headquartered “pure” foundry, with factories in the U.S., Germany and Singapore, CNBC says. If Intel proceeds with the potential acquisition, the deal could raise anti-trust concerns because GlobalFoundries manufactures semiconductors designed by such Intel rivals as AMD, Qualcomm and Broadcom, among others.
For its part, GlobalFoundries has been planning a potential initial public offering (IPO) in the first half of 2022. Owner Mubadala Investment Co. an Emirati state-owned holding company that can be characterized as a sovereign wealth fund. The organization is strongly connected to Mohamed bin Zayed, crown prince of Abu Dhabi, WikiPedia notes.
Intel CEO Pat Gelsinger’s Turnaround Plan
New Intel CEO Pat Gelsinger, hired away from VMware in early 2021, is striving to put his stamp on Intel’s business. Indeed, Gelsinger recently reorganized Intel and vowed to improve the inconsistent chip giant’s manufacturing processes. Acquiring GlobalFoundries is one potential way to achieve that goal.