Santa Clara chipmaker Intel in talk to buy GlobalFoundries at $30 billion buyout deal

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Santa Clara chipmaker Intel in talk to buy GlobalFoundries at $30 billion buyout deal

Intel Corp, the Santa Clara, California-headquartered American multinational chipmaker, had been in an advanced staged talk to purchase domestic peer GlobalFoundries at a $30 billion acquisition deal, a Wall Street Journal report had unveiled citing unnamed sources familiar with the discussion.

Nonetheless, shortly after release of the media headline, a spokesman for GlobalFoundries had denied that the company had been in talks with Intel Corp. Apart from that, latest media headline citing Intel Corp’s intent to purchase GlobalFoundries at a whopping $30 billion deal, came forth at a critical time while the global semiconductor industry has been scuffling amid a sweeping shortage of chips.

A number of US carmakers, in tandem, had reportedly either slashed or shuttered down production lines due to the shortage, while US motor vehicle sales were plunged for a second straight month in June, US retail sales data for June had revealed.

Amid such garrulous landscape in global chipmaking industry, if successful, a deal would help Intel boost up productions when the demands are at the peaks as the Santa Clara-based chipmaker had reportedly been looking to start manufacturing more chips for a beleaguered global auto market which has been vying to vent out a way to grapple with a severe drought in chip supplies around the globe.

Intel to purchase chipmaker GlobalFoundries at $30 billion deal

Apart from that, media reports had also unveiled that Intel Corp., the 53-year old American multinational chipmaker might have prepared a $50 billion war chest to expand its advanced chip manufacturing capacity, while its spending on US factories could top an eye-propping $20 billion.

Intel, one of the few remaining chipmakers that still designs and manufactures its own chips, had told earlier this year that it had been looking to open factories outside chip designers in a bid to better compete with rivals likes of Taiwan’s Semiconductor Manufacturing Co Ltd alongside S. Korea’s Samsung Electronics Co Ltd.