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Intel is reportedly in talks with AMD about its $30 billion foundry company it spun off a decade ago

Intel

Intel and AMD took divergent paths in 2008: The Company kept manufacturing their own chips to retain control, while AMD spun off their semiconductor business into GlobalFoundries, depending on it and others to provide the actual silicon.

The Wall Street Journal reports that Intel is also interested in buying AMD’s former fabs in a deal valued at $30 billion.

According to reports, AMD and Intel are discussing Intel’s $30 billion foundry business, which it spun off a decade ago

According to the Wall Street Journal, GlobalFoundries flatly denied discussions with company were underway. In reality, Intel may be in negotiations with GlobalFoundries’ parent company, as the WSJ reports.

The company itself hasn’t responded to the Journal’s request for comment – a company’s no comment can be a canary to indicate they have commented, just off the record or in the deep background.

Right now, Company is aggressively expanding its foundry business, which is why it would like GlobalFoundries. With a view to turning around the struggling business.

According to Pat Gelsinger, new CEO, the company is no longer going it alone. It will produce chips for third-party companies using its own foundries, and also invest in new manufacturing facilities. 

A $20 billion investment was made in new buildings in Arizona, but it may take decades for the buildings to be built and ramped up.

According to TrendForce, the #4 foundry in the world (representing 7 percent of all foundry business by revenue) may be up for grabs. As a result of the move, Intel would no longer be in the same league as TSMC and Samsung (which together account for approximately 74 percent of the market), but it would still benefit the company in the long run.

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