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Intel to acquire Global Foundry for $30 billion

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Intel, the world’s largest semiconductor maker, appears to be in talks to acquire Global Foundry, a U.S. foundry (consignment processing) company, for $30 billion.

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The Wall Street Journal (WSJ) reported today that Intel is seeking its largest M&A deal since its founding. GlobalFoundry is an American foundry owned by the Abu Dhabi sovereign wealth fund. The company is in the process of preparing for an initial public offering.

Its largest acquisition to date has been semiconductor maker Altria, acquired in 2015 for $14 billion.

However, Intel had only been designing semiconductors while outsourcing the processor designs to Taiwanese firm TSMC. However, when the global semiconductor crisis broke out, the demand to make semiconductors on their own increased, and the WSJ analyzed that it seems they are trying to acquire Global Foundry, which has a factory in the United States.

Intel announced earlier that it would invest more than $20 billion in its manufacturing capabilities. With a market capitalization of $225 billion (about 256 trillion won), Intel is the world’s largest semiconductor company.

GlobalFoundry was founded by Intel’s competitor AMD as a subsidiary specializing in semiconductor manufacturing, and became independent in 2008.
According to reports, GlobalFoundries has a 7 percent share of the global foundry market.

GlobalFoundries has invested more than $4 billion in expanding its manufacturing capabilities and creating a new manufacturing facility in Singapore.

Aside from that, the U.S. government is actively supporting semiconductor companies by promoting the semiconductor industry as a key security-related industry and by providing tax incentives to build semiconductor manufacturing capacity.

For MetaNews.

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Jonathan Hobbs

Jonathan Hobbs is an Australian investor and author that trades on a variety of asset classes, including currencies, equities, and commodities. Jonathan’s experience as a macro trader leverages his unique writing style to combine important elements, such as technical analysis and news. The other elements that he brings into his unique writing styles are foundation analysis aimed at rational equilibrium values, evaluating the sizes and motivations of buyers and sellers, as well as identifying the needs of the buyers and sellers in the individual markets. Jonathan is committed to quality writing for new traders as well as veterans.

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