Intel is one of the biggest chip manufacturers in the world followed by AMD who is in the same business line. Intel and AMD go about their business in two very different ways, Intel is an in-house chip manufacturer while AMD spun off its foundry business as a business strategy. The name of the spun-off company is GlobalFoundries and according to recent reports, Intel is eyeing to acquire the AMD spun-off for USD 30 billion.
As mentioned in a report by The Wall Street Journal, Intel is looking forward to expanding its business in the chip manufacturing market by acquiring a competitor’s spun-off business. Although, there is no denying the fact that this 30-billion-dollar worth deal will boost Intel’s market share and market standing in the industry.
However, Wall Street Journal’s report made it pretty clear that the deal might just be speculations as neither company has actually confirmed these reports. Where GlobalFoundries denied the speculations altogether, Intel says ‘no comments’ on the rumors and speculations, according to The Verge.
Intel is committed to expanding its foundry business and what better than GlobalFoundries having a market share of 7 percent. Several reports suggest that Intel is going through a rough patch and it couldn’t be truer because AMD is doing a great job with its chips and Apple Inc., who was once the top-most customer of Intel for chips has also withdrawn from the partnership, partially.
As we all know, Apple is now manufacturing its own chips for Mac devices as it currently did for iPhones, iPads, and other products. According to Apple, their dependency on Intel was anchoring them in many ways, so they decided to make their own. Apple’s first chip for MacBook, the M1 chip is a 100 percent success in the market as it even beats Intel’s 10th generation processors.
Intel lost a huge chunk of its market standing ever since Apple began to play its own game and with such difficult times, it is only benefiting for the company to expand its business.
Pat Gelsinger, the new Intel CEO mentioned in a statement in March that Intel would no longer do it alone and maybe this acquisition is the first step towards that new mission, as mentioned in a report by The Verge. According to reports, Intel has also invested a sum of USD 20 billion in new facilities in Arizona, but it could take a lot of time for the new facilities to get operational.
Intel has begun to outsource its chip production to third-party foundries and acquiring AMD spun off, GlobalFoundries is a fine decision made by the company that is guaranteed to boost its plans.
