Santa Clara chipmaker Intel in talks to buy GlobalFoundries for $ 30 billion
Intel Corp, the U.S. multinational chipmaker based in Santa Clara, Calif., Was in advanced talks to buy its national counterpart GlobalFoundries in a $ 30 billion acquisition deal, a Wall Street report has revealed. Journal citing anonymous sources familiar with the discussion..
Nonetheless, shortly after the media headline was released, a spokesperson for GlobalFoundries denied that the company had been in talks with Intel Corp.. Apart from that, the latest media headline citing Intel Corp’s intention to buy GlobalFoundries for a whopping $ 30 billion came out at a critical time as the global semiconductor industry struggled in the midst of a severe shortage of fleas.
A number of US automakers, in tandem, have reportedly cut or closed production lines due to the shortage, while US motor vehicle sales fell for a second straight month in June, data revealed US retail sales for June..
Amid such a chatty landscape in the global chipmaking industry, if successful, a deal would help Intel ramp up production when demand is at its highest, as the Santa Clara-based chipmaker would have sought to start making more chips for a besieged global auto market that competed for a way to tackle a severe drought in chip supplies around the world.
Intel buys chipmaker GlobalFoundries for $ 30 billion
Apart from that, the media had also disclosed that Intel Corp., the 53-year-old American multinational chipmaker, could have prepared a $ 50 billion war chest to expand its advanced chip manufacturing capacity, while its spending at US factories could exceed the cap. $ 20 billion.
Intel, one of the few remaining chipmakers that still designs and manufactures its own chips, said earlier this year that it was looking to open factories outside of chip designers in an effort to better compete with competitors like Taiwan’s Semiconductor Manufacturing Co Ltd alongside S Korean company Samsung Electronics Co Ltd.