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Is Intel Set To Boost Its Chipmaking With $40bn Deal?

Rumours are swirling that Intel is planning to buy the world’s fourth largest chip foundry in a $30 billion USD (around $40 billion AUD) deal that would bolster its chipmaking capacity in the face of the global shortage.

The ­Wall Street Journal reports that the company is in talks to acquire GlobalFoundries, the former fabrication arm of its big rival AMD, as part of its push to expand chip supply by outsourcing to third-party fabricators and invest more in its own fabricating capabilities.

Intel has declined to comment, dismissing the report to The Verge as “rumour and speculation”, and GlobalFoundries itself denied being involved in any such talks; however, WSJ has speculated that the talks could instead be taking place with the fabricator’s owner, Abu Dhabi-based investment firm Mubadala Investment Co.

According to TrendForce, GlobalFoundries is the fourth largest chip foundry in the world by revenue with seven per cent market share, behind UMC, Samsung, and Taiwanese behemoth TSMC, which accounts for 56 per cent of the market.

Any Intel takeover could potentially present big antitrust headaches, as GlobalFoundries still supplies silicon to its former parent company AMD despite being spun off in 2009.



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