Intel In Talks To Purchase GlobalFoundries for $30 Billion

[stimpy88]

D'not they have a contract obligation to tsmc ? Tsmc will be mad like they where mad need Samsung gave nvidia sweet cheap deal

But reading between the lines here, it does look highly likely that Intel cannot compete with AMD products, so instead they will just take the foundries away (taking capacity, or outright buying them) until AMD just has one place to go - an inferior process tech - A very smart way of putting AMD in a corner.

 

[HD64G]

AMD is to make low power Zen3 APUs in GF. Maybe Intel wants to block or at least restrain that and get themselves bigger production on their products?

 

[Auer]

But reading between the lines here, it does look highly likely that Intel cannot compete with AMD products, so instead they will just take the foundries away (taking capacity, or outright buying them) until AMD just has one place to go - an inferior process tech - A very smart way of putting AMD in a corner.

I know just saying that maybe Intel wants to sell more stuff and make more profit is not very exciting but that's probably why they would like to do this.

 

[owen10578]

I am ready for cheap GloFo made Intel i3 and i5 CPUs.

 

[Operandi]

I'm not convinced that allowing Intel to acquire GF is a good thing, but I'm not passing judgement either, without more facts.

I agree that NVIDIA acquiring ARM is a good idea though. Just think how fast those CPUs could go with NVIDIA accelerating them like Intel and AMD have with x86 / x64!

I don't think this is huge blow to AMD or anything; they can make their IO die or whatever else they plan on making with older nodes with anyone else. The only reason they were using GF is because they had to at least try to fulfill some of their manufacturing contract. AMD only went to TSMC because GF coudln't get their 7nm node up and running, the long term goal in the beginning was to always use GF as their primary foundry source. That said having one less independent foundry can't really be good for the market in general.

Off topic but Nvidia buying ARM is not a good thing in my opinion. They claim they will keep the status quo in regards to licensing and that they won't keep the best stuff for themselves but why should anyone believe that and if thats the case why spend all the money in the first place. Anyone with architecture license can do whatever they want with the ISA and design their own cores, thats what all of Apple's CPU are. And don't they already have one?, I thought all of Nvidia's ARM CPUs were custom designs its just that nobody cares cause they are garbage compared to what Apple is doing.

But reading between the lines here, it does look highly likely that Intel cannot compete with AMD products, so instead they will just take the foundries away (taking capacity, or outright buying them) until AMD just has one place to go - an inferior process tech - A very smart way of putting AMD in a corner.

It dosn't work like that. Whatever contracts are in place now would have to be fulfilled, you can't just rip them up cause GF and AMD aren't besties anymore. Besides if it goes through it would take years happen anyway and AMD is only using GF for the IO die (and maybe future smaller CPUs and GPUs?). Capacity on older nodes isn't as contentious as it is on the leading edge ones so AMD could have 14, 12nm made wherever with a little bit of redesign work.

 

[JAKra]

Those Intel 10 and 7nm yelds are terrible if they need to buy GF to meet demand.
-sarcasm off

AMD CPU in 1982:
Designed by Intel.
Made by AMD.

AMD CPU(APU) in 2022:
Designed by AMD.
Made by Intel.

 

[DeathtoGnomes]

Hasnt AMD been spending the better part of a decade trying to get AWAY from GloFo?

has it been that long since the split ?

 

[ODOGG26]

This is clearly not going to happen and most likely is a smokescreen to bolster their image to shareholders to mask their ever reducing margins. I dont believe this one bit. America would then be down to One major chip manufacturer which would make no sense. This is all BS

 

[Tom Sunday]

Looks like Intel is a little behind as NVIDIA purchased ARM for a cool $40 billion last year. And then showing fantastic returns on Wall Street jumping in just 12-months from $400 to $758 a share. Now Intel is looking to corner the chip market in one bold move for only $30 billion. Meanwhile in Arizona Intel will spend $20 billion to build two new chip factories, called fabs, in Chandler. And then Alder Lake is looming in a few months. Wall Street's forward looking statement has Intel now sitting pretty. Many of us made some quick cash in 2020 with AMD and that was very nice and most of us then bailing once their stock peaked out. Now things are changing again the landscape or the Golden Rule. It's he who has the gold makes the Rule.

 

[ShiBDiB]

I live right near their Malta NY plant (and new HQ) so am interested in how this plays out. They're a pretty large provider of jobs in these fields and a feather in the cap of the local governments push to bring these types of companies to upstate NY.

 

[thesmokingman]

Wall Street sees this as Intel throwing in the towel, pure desperation. The only upside is that it's finally happening now and they can move forward. I'm watching this live on CNBC as analyst tear into Intel.

 

[mechtech]

Wall Street sees this as Intel throwing in the towel, pure desperation. The only upside is that it's finally happening now and they can move forward. I'm watching this live on CNBC as analyst tear into Intel.

Wonder why. Is GF 14nm any better than Intel 14+++++nm??

I think Intel wants to keep on getting bigger like MS, Apple, Amazon, Google, etc.

 

[thesmokingman]

Wonder why. Is GF 14nm any better than Intel 14+++++nm??

I think Intel wants to keep on getting bigger like MS, Apple, Amazon, Google, etc.

That's why it's being seen as desperation. It just shows that they are really the fkn bad so bad that we just don't even know how bad off they are in their own fabs.

 

[mechtech]

That's why it's being seen as desperation. It just shows that they are really the fkn bad so bad that we just don't even know how bad off they are in their own fabs.

So if Google or MS or Apple puts in a bid, it will be looked upon as desperation also??

 

[londiste]

Wall Street sees this as Intel throwing in the towel, pure desperation. The only upside is that it's finally happening now and they can move forward. I'm watching this live on CNBC as analyst tear into Intel.

Time to buy Intel then, I guess.
GF does not have a working process that would be better than Intel's "good old" 14nm.

But reading between the lines here, it does look highly likely that Intel cannot compete with AMD products, so instead they will just take the foundries away (taking capacity, or outright buying them) until AMD just has one place to go - an inferior process tech - A very smart way of putting AMD in a corner.

AMD is not producing much of significance in GF any more, mainly because GF is manufacturing 14/12nm stuff. Even if there is trouble (which there probably will not be) AMD should be able to source this from TSMC or Samsung without much of a problem. Or SMIC. There are even a couple more smaller players that should have the capability for this.

This is a dangerous consolidation of power. This would eliminate yet another independent market supplier from the supply chain entirely, and give Intel significantly more power to control pricing. GloFo doesn't pursue leading edge nodes anymore but they hold a key corner in the market to price competitively and balance between themselves, Samsung, and TSMC.

Consolidation is probably not the right word here. Intel is today almost not competing in selling foundry business, very large majority of the production goes to Intel itself with some minor exceptions. This might be more like buying themselves into foundry business since they do get a share with GF customers.
TSMC and Samsung are the big players, SMIC is spending a lot to try and catch up, GF was being left behind and has given up on latest nodes.

 

[Why_Me]

Looks like Intel is a little behind as NVIDIA purchased ARM for a cool $40 billion last year. And then showing fantastic returns on Wall Street jumping in just 12-months from $400 to $758 a share. Now Intel is looking to corner the chip market in one bold move for only $30 billion. Meanwhile in Arizona Intel will spend $20 billion to build two new chip factories, called fabs, in Chandler. And then Alder Lake is looming in a few months. Wall Street's forward looking statement has Intel now sitting pretty. Many of us made some quick cash in 2020 with AMD and that was very nice and most of us then bailing once their stock peaked out. Now things are changing again the landscape or the Golden Rule. It's he who has the gold makes the Rule.

Not to mention Intel is expanding it's fab plant in New Mexico, it's 7nm plant in Ireland and is about to build a plant in Bavaria after talks with the German government. If there's one thing anyone with an IQ north of a carrot has learned from this virus shutdown RE supply chain is that these chip foundries are big time important. The US, Germany and Japan rely heavily on their automobile production and no chips means no automobiles. Throw in all the other things that require chips such as tractors, heavy equipment, welding machines, microwaves, washer & dryers, etc , etc ...

 

[Anymal]

They soon should produce ARM based chips.

 

[iO]

So that's the "Intel Foundry Buisness 2.0" they were talking about. /s

Not sure if this would go through. They still fab Zen(+) CPUs and APUs, Vega and maybe even Polaris for long-term product availability of embedded and PRO series stuff. Also current things such as IODies and chipsets. Plus there are rumours about cheap 12nm APUs for chromebooks...

 

[thesmokingman]

So if Google or MS or Apple puts in a bid, it will be looked upon as desperation also??

Do Google or Apple already have multiple fabs?

 

[InhaleOblivion]

Essentially, if you can't beat them, buy them. My have the tables turned.

 

[eidairaman1]

If the deal goes through intel will be unstoppable.. its over for amd they.ll have to beg tsmc for more left overs from apple


It will go through intel is an American diamond that needs to be protected

Erm the rhetoric can stop, AMD is whooping intel.

 

[xorbe]

This is probably backed by the US Gov't through Intel, wild guess.

 

[yotano211]

Do Google or Apple already have multiple fabs?

Google and Apple are software/service products only, they design the stuff, not make it.

 

[ValenOne]

Wonder why. Is GF 14nm any better than Intel 14+++++nm??

I think Intel wants to keep on getting bigger like MS, Apple, Amazon, Google, etc.

GF 12 nm is based on 14 nm, hence it's effectively GF's 14+++++++ nm.

 

[Deleted member 24505]

Erm the rhetoric can stop, AMD is whooping intel.

Doing well but not whooping. AMD net worth $6bil, Intel net worth $240bil. Amd are certainly doing better than they have in the past, but i certainly don't think they will ever be above intel in value, or total sales. AMD shares are doing well though, nice for people who bought when they were pennies a share