Intel in Talks to Acquire GlobalFoundries for 34 Trillion Won (Update)

[Asia Economy Reporter Yujin Cho] U.S. semiconductor company Intel is reportedly exploring the acquisition of semiconductor foundry company GlobalFoundries, according to sources cited by the Wall Street Journal (WSJ) on the 15th (local time).

Sources said the acquisition price could reach approximately $30 billion (about 34.26 trillion KRW). If this acquisition is completed, it is expected to be the largest merger and acquisition (M&A) in Intel's history.

WSJ reported that there is no guarantee the acquisition will be finalized, and GlobalFoundries may proceed with its planned initial public offering (IPO) as originally intended.

GlobalFoundries, headquartered in New York, USA, is majority-owned by Mubadala Investment Company, the sovereign wealth fund of the United Arab Emirates (UAE).

In this regard, a GlobalFoundries spokesperson officially denied the reports, stating, "We are not engaged in any negotiations with Intel."

GlobalFoundries is a semiconductor chip manufacturer established in 2008 when AMD, Intel's competitor, spun off its chip production division. AMD remains a customer of the company, having signed supply contracts worth about $1.6 billion this year alone.

According to Taiwanese research firm TrendForce, GlobalFoundries holds about a 7% share of the global market based on revenue.

The acquisition effort is reportedly being led by Intel CEO Pat Gelsinger. Since taking office in February, CEO Gelsinger has declared his intention to wrest control of the global semiconductor industry from Taiwan's TSMC.

Intel plans to invest more than $20 billion this year to expand production facilities in response to domestic demand in the United States.

This content was produced with the assistance of AI translation services.