Intel is reportedly in talks to purchase GlobalFoundries for roughly $30 billion.
Intel in Talks To Buy GlobalFoundries for $30 Billion: Report : Read more
Intel in Talks To Buy GlobalFoundries for $30 Billion: Report : Read more
Intel's rumored buy-out plan also comes as it lobbies the US government for subsidies
The likely alternative if they don't get subsidized is to build overseas or not at all. Both of which are worse scenarios.I really enjoy buying fabs for wealthy people. That made my day.
Intel made what, 40 billion profit in 2019? That makes it clear that I needed to buy them a fab as they just couldn't afford it. This was a top priority.
And in Ireland ...And earlier this year they spent $20B on 2 fabs in Arizona.
Intel Invests $20 Billion In 2 New Arizona Fabs
Intel is also taking a more open approach to being a foundry service provider by indicating that it wants to manufacture for other CPU architectures and is willing to manufacture even for its competition.www.forbes.com
Seems a bit strange since they already have some factories of their own. It's really ironic considering where GF came from.
I'm not sure, but I think a lot of these companies using IFS would be ARM devices and not X86/64? ARM isn't in desktop yet so I guess they won't have much overlap?I feel Intel very highly geared to have all these big acquisition plans. Anyway, while most companies don't want the added responsibility of running a fab along with their chip business, Intel is the only one doubling down on it. At this point, I am not too sure if this is the right way ahead, but given that there were idle capacity reported for some fabs prior to COVID hitting us, I am not sure an aggressive expansion of fab by Intel makes sense. Also, Intel is not exactly the fab that most chip makers will turn to because Intel is also a competitor when it comes to chip design.
The purpose of subsidizing new FAB construction is to keep the country at the technology forefront. Buying existing non-leading edge fabs doesn't accomplish that. Nor does it create new jobs, which in turn generates more tax revenue.The EU or the US should just buy Global Foundries.
It's cheaper than buying fabs for publicly-traded companies like Intel and TSMC.
Not sure that the purchase would be permitted by the relevant competition authorities around the world - as it may be seen as an attempt to monopolise Foundry provision.
Intel is only 6th in 300mm wafer capacity accounting for 6% of the market. Global Foundries is 7th with 4%. If you add GloFo's capacity to Intel's, the combined total would still leave Intel in 6th place, 1% behind Kioxia. Intel wouldn't be monopolizing anything with only 10% market share. #1 Samsung has 21% of the market, more than twice the capacity of Intel and GloFo combined.Not sure that the purchase would be permitted by the relevant competition authorities around the world - as it may be seen as an attempt to monopolise Foundry provision.
Ironic, Yes, but it makes a a lot of sense. Global foundries will fade away if they don't get a huge infusion of cash. Everything they are doing today is likely to be available in China in a few years at a lower cost. They have a huge number of skilled engineers who know how to make high end semiconductors, but they don't have the capital. Intel screwed up royally in forcing many expensive process engineers to retire, and they blew it when it came to building parts for other companies. The key to making this work is for Intel to keep Global Foundries as a wholly owned, but separate subsidiary.Seems a bit strange since they already have some factories of their own. It's really ironic considering where GF came from.
If I was the US Government, I'd have Anti-Trust watching over this with a fine tooth comb.
I'd want Intel & it's Foundary Services to be Permanently severed into two companies if they were to allow a Global Foundaries Buy-out.
Force Intel to be a Purely Chip R&D/Design firm.
Force the newly formed (Intel Foundaries + Global Foundaries = Intelligent Global Foundaries) into a pure Foundary Service to directly compete against TSMC.
Intel is only 6th in 300mm wafer capacity accounting for 6% of the market. Global Foundries is 7th with 4%. If you add GloFo's capacity to Intel's, the combined total would still leave Intel in 6th place, 1% behind Kioxia. Intel wouldn't be monopolizing anything with only 10% market share. #1 Samsung has 21% of the market, more than twice the capacity of Intel and GloFlo combined.
I thought about it for a few days and I'm wondering what Intel will gain except fab capacity?
Intel's 14nm/10nm is already competitive with TSMC 7nm in terms of transistor density, and with GloFo abandoning leading edge nodes I'm guessing Intel and GloFo is roughly on-par technology wise. Acquiring them would make Intel expand their fab power immediately without making their own fabs.
If true, the rumor would certainly surprise me.... AMD unloaded Glo Flo because it no longer wanted the FABs--seems pretty clear to me. Intel would be doing AMD a favor in picking up GloFlo, seems to me, as GLO Flo hasn't had any more success in going to 7nm than Intel has had getting there.
Getting to 7nm is the most useless thing ever if you can't make enough of them to sell one to everybody that wants one.If true, the rumor would certainly surprise me.... AMD unloaded Glo Flo because it no longer wanted the FABs--seems pretty clear to me. Intel would be doing AMD a favor in picking up GloFlo, seems to me, as GLO Flo hasn't had any more success in going to 7nm than Intel has had getting there.
Every single announcement intel makes includes the "we are industry leaders" "we have the cutting edge" and so on.Believe me when I say that if Intel was shipping 14nm identical to TSMC's 7nm, Intel would never let that PR stone go unattended...! Instead, Intel has been promising to catch TSMCs 7nm for the last 2-3 years, and in a very public fashion, IIRC.
Every single announcement intel makes includes the "we are industry leaders" "we have the cutting edge" and so on.
hm I haven't paid attention to this area, but you sure do have a point. To some extend I'd also argue that IFS is already getting some of their customers, didn't Intel say a few weeks/month back that they're already in talks with around 40 companies about using IFS?Global foundries has a history of licencing nodes from other foundries, particularly Samsung, and tweaking them. Intel could buy Global foundries and not merge it with their own fabs. Instead have it license leading-edge (or almost leading edge) nodes from Samsung and TSMC (like Samsung's 8nm node or TSMC's 7nm node) and use it for customers that would otherwise go to Samsung or TSMC. It will also act as a vehicle for Intel to license nodes from TSMC and Samsung in case their own process gets delayed again, like it happened with 10nm, without losing face as it won’t be Intel's fabs buying/licensing the nodes but Global foundries.