Of course, against the background of the budgets allocated by NVIDIA and AMD for the purchase of Arm and Xilinx, respectively, Intel’s likely purchase of GlobalFoundries assets does not claim to be the “deal of the century”, but it will be the largest takeover in the history of the processor giant. Analysts believe that the deal is unlikely to be limited to the amount of $ 30 billion, since GlobalFoundries can receive it as part of the IPO.
Baird analysts admitted to Barron’s that the negotiations between Intel and GlobalFoundries started at the end of April – long before the outgoing week, when they first became known about them. Such a sequence of information disclosure suggests that only now the negotiations have reached the level of senior managers of companies interested in the deal. Recall that the owner of GlobalFoundries is the investment fund Mubadala Investment, and Bloomberg claims that no formal proposals from Intel have been received through this channel so far.
The current owners of the GlobalFoundries business are actively preparing for a public offering, during which they expect to raise the same $ 30 billion.According to the source, Mubadala usually sells only a share in its most valuable assets, leaving behind a block of shares, in this sense, Intel’s hypothetical desire to buy GlobalFoundries may completely disagree with the seller’s intentions. Mubadala representatives could be convinced by a higher transaction amount, experts say.
Baird analysts believe that a deal between Intel and GlobalFoundries would benefit both parties. Intel would gain a network of customers to help it become a major contract chip manufacturer faster. GlobalFoundries could get access to more advanced lithography, which it decided to refrain from mastering in due time for reasons of economy. The first 7nm AMD processors, we recall, were to be produced by both TSMC and GlobalFoundries, but the latter decided to leave the race, focusing on improving the 12nm process technology. Bernstein analysts believe that the business of GlobalFoundries is unprofitable for the current owners, and therefore, in the event of a transition to Intel’s control, it will undermine the economic performance of the latter of the companies.
For Intel, a political element is also important in this deal – part of the GlobalFoundries enterprises are located in the United States, so the corporation could qualify for government subsidies and the general favor of the country’s leadership. It will develop its own production in the United States without taking into account subsidies, but the authorities are definitely interested in supporting contract manufacturers, since they are able to cover a larger number of American companies with services.
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