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Intel eyes buying GlobalFoundaries for USD 30 billion

America's Intel Corporation is reportedly in discussion to acquire GlobalFoundaries, a semiconductor manufacturer giant based in New York, with an aim to strengthen its operations.

Intel boosting manufacturing ops with GlobalFoundaries?

Wall Street Journal said it learned from sources that Intel may cough up roughly USD 30 billion to buy GlobalFoundaries. Involved parties, however, were mum on the report.

This comes after reports also floated the possibility of Intel acquiring RISC-V chip designer SiFive for USD 2 billion.

Intel, with a market value amounting to USD 225 billion, is also demanding subsidies from the US government to increase its manufacturing capabilities and finance its IDM 2.0 initiative, allowing it to produce chips for other companies.

This goal of becoming a major chipmaker has been witnessed under the leadership of Intel's new chief executive officer Pat Gelsinger. Currently, Taiwan is dominating the industry.

Gelsinger last month said the global chip shortage may last for years. The executive said the world may suffer much longer as the coronavirus pandemic forced countries to implement remote working and distance learning, resulting in a "cycle of explosive growth in semiconductors", straining global supply chains.

But while the industry has taken steps to address near-term constraints it could still take a couple of years for the ecosystem to address shortages of foundry capacity, substrates and components, Gelsinger said during a virtual session of the Computex Trade Show in Taipei.

Source: Wall Street Journal

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