Intel looks to buy AMD's spun-off unit for $30 billion: Report

Closely held GlobalFoundries, controlled by Abu Dhabi's sovereign fund Mubadala Investment, could be valued at about $30 billion, the Wall Street Journal reported

Intel is exploring a deal to acquire semiconductor manufacturer GlobalFoundries, the Wall Street Journal reported, citing people familiar with the matter.

Closely held GlobalFoundries, controlled by Abu Dhabi’s sovereign fund Mubadala Investment, could be valued at about $30 billion, the Journal reported. The deal isn’t guaranteed and GlobalFoundries —  which came into being as a result of Intel rival AMD’s decision to spin off its own semiconductor manufacturing business back in 2009 — may continue to pursue an initial public offering, the paper said, adding that the talks don’t appear to include GlobalFoundries itself. A spokesperson for Santa Clara, California-based Intel declined to comment on the report, and GlobalFoundries didn’t immediately respond to a request for comment.

Any bid for GlobalFoundries would buttress Intel’s ambitious plan to regain its once unmatched lead in chip production. Intel CEO Pat Gelsinger, who took the top job in February, has pledged to restore the company to its dominant role in manufacturing and computer processors after losing ground to  Taiwan Semiconductor Manufacturing and others. He’s also moving to take on those rivals directly by opening the doors of Intel’s plants to other chipmakers, including competitors, and has said he’ll spend heavily to build new factories specifically to act as foundries that make chips for others.

“We’re going to be leaders in the market, and we’re going to satisfy the new foundry customers,” Gelsinger told journalists after taking over as CEO. “Because the world needs more semiconductors, and we’re going to step into that gap in a powerful and meaningful way.”