Intel or 30 billion US dollars acquisition of GF, the foundry industry is going to change?

Intel or 30 billion US dollars acquisition of GF, the foundry industry is going to change?

According to the Wall Street Journal, a person familiar with the matter revealed that the semiconductor giant Intel is considering acquiring the US foundry company GlobalFoundries for US$30 billion (contract 193.7 billion yuan ) .

Once the acquisition is completed, it will push Intel to further increase its foundry production capacity. By then, the acquisition will become the largest acquisition in Intel’s history , exceeding the $16.7 billion acquisition of Altera at the end of 2015.

At present, the actual controller of GF is Mubadala Investment, an investment agency of the Abu Dhabi government. GF is headquartered in the United States and has approximately 200 customers worldwide.

People familiar with the matter said that GlobalFoundries may also conduct an IPO. Although the acquisition valuation has reached 30 billion US dollars, everything is still under discussion, and the two companies may not come together.

A GF spokesperson said that the company has not yet negotiated with Intel.

1. Intel has a big appetite for purchasing factories with one hand and investing in building factories with the other.

According to data from TrendForce, a market research organization, TSMC has a 54% share of the global semiconductor foundry revenue market. Samsung, UMC, GF, and SMIC rank second to fifth respectively. But the market share is far behind TSMC.

Intel or 30 billion US dollars acquisition of GF, the foundry industry is going to change?

▲The global wafer foundry revenue market pattern from 2020 to 2021, picture source: TrendForce

Intel’s own foundry capacity is generally used for the production of its own processors and other products, rarely for other chip design manufacturers, but as its own chip manufacturing process breaks through the bottleneck, and a series of business adjustments after the new CEO takes office , To expand the demand, Intel will gradually expand its own chip foundry business.

In March of this year, Intel’s new CEO , Pat Gelsinger, announced that Intel will vigorously develop its chip foundry business and expand its share of the chip foundry market.

The acquisition of GF may also be one of Intel’s ways to achieve this goal, and GF’s current 7% of the foundry market revenue share is indeed a “big cake” for Intel.

In addition, Intel, which has a market value of US$225 billion, has pledged to invest more than US$20 billion within this year to expand its chip manufacturing plant in the United States.

Reuters believes that Intel’s plan to acquire GF will help it increase chip production capacity, and the current demand for chips in various industries is very strong, “demand has reached its peak.”

2. Intel’s four-year acquisitions exceed US$30 billion

In recent years, Intel’s acquisitions in the fields of semiconductors and artificial intelligence have really been “massive”. Just in 2015, Intel invested $16.7 billion to acquire programmable logic device manufacturer Altera, which is also the largest acquisition in Intel’s history so far. After the acquisition, Intel has also become the world’s second largest programmable logic device manufacturer. , second only to Xilinx (Xilinx) .

In August 2017, Intel spent $15.3 billion to complete the acquisition of Mobileye, an Israeli autonomous driving technology company, and established its own new autonomous driving department after the acquisition.

Of course, in December 2019, the acquisition of Habana Labs, an Israeli cloud AI chip startup, for US$2 billion has also taken Intel’s layout in the field of AI chips even further.

Intel or 30 billion US dollars acquisition of GF, the foundry industry is going to change?

▲The main acquisition events of Intel in recent years, source of picture: Semiconductor Story

Intel has made frequent acquisitions in recent years, and its expansion in product, technology, and business sectors has also been very active. It can be seen that giants, such as Intel, are also actively thinking about changes.

Third, GF, who left AMD, will “marry” into Intel again?

What’s more interesting is that GF, as the world’s top five foundry manufacturer, actually has a lot of connections with AMD.

AMD also had its own wafer foundry in the early years, but its financial pressure suddenly increased after the acquisition of ATI, and finally sold its foundry business in 2008 and established GF in cooperation with Mubadala Investment, a Middle East investment institution.

As the year 2012 AMD stock clearing in the hands of a cellular core, both officially “break up”, but after breaking up, AMD and cellular core remained partnership, AMD part Dacentrurus series processor core IO (IO Die) on Handed over to GF foundry.

With this acquisition, Intel intends to include the “ex-girlfriend” of its old rival AMD in its own pocket. It is unavoidable that the semiconductor industry is indeed a “circle.”

4. Conclusion: Under the surging tide of core shortage, the semiconductor market is full of variables

Regardless of whether Intel can successfully acquire GF this time, it shows that Intel wants to “play the real thing” in expanding its chip foundry business. As a giant in the semiconductor industry, Intel’s actions will also have a certain impact on the industry.

Under the tide of core shortage, mergers and acquisitions in the semiconductor industry have become more common, and giants are eager to try. Although TSMC’s foundry dominance is difficult to shake, the pattern of the semiconductor market is still full of variables.

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