Intel in Talks To Buy GlobalFoundries for $30 Billion: Report

According to a report from the Wall Street Journal, Intel is in talks to buy GlobalFoundries for roughly $30 billion. Intel has not confirmed the report, but if true, the plan would intercept GlobalFoundries’ widely-reported plans for an IPO later this year. The news comes on the heels of recent reports that Intel is in talks to buy RISC-V chip designer SiFive for $2 billion as it undergoes a major restructuring effort under new CEO Pat Gelsinger. 

Intel’s proposed buy-out plan comes as it lobbies the US government for subsidies to boost its manufacturing capabilities, particularly to help fund its IDM 2.0 initiative that will find it producing chips for other companies through a newly-formed Intel Foundry Services (IFS). Intel has pledged $20 billion of its own money to kick-start that initiative with two fabs in Arizona, but plans to expand the program through the help of government subsidies. Acquiring GlobalFoundries would be an immediate shot in the arm for that initiative. 

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