Can Intel afford to purchase GF?

According to reports, Intel is considering purchasing Globalfoundries for an estimated US$30 billion. Will the purchase be a wise investment and adhere to Intel’s recently disclosed IDM 2.0 strategy?

As part of its new IDM 2.0 model, which the company plans significant manufacturing expansions under, Intel previously disclosed plans to spend up to $20 billion on building new fabs and expanding its foundry services. The company also plans to become a major supplier of foundry capacity in the US and Europe.

Before being owned by Mubadala Investment, the investment arm of the Abu Dhabi government, GF was an AMD manufacturing subsidiary. Four 300mm fabs and two 200mm fabs are now in operation at GF.

The biggest semiconductor manufacturing facility in Europe is GF’s Fab 1 in Dresden, which has more than 52,000 square meters of cleanroom space. GF Dresden, notably the high-tech cluster in Saxony, makes a major contribution to the development of a cutting-edge semiconductor sector in Europe, according to GF’s CSR report 2020 .

It is noteworthy that Intel CEO Pat Gelsinger reportedly recently paid visits to Europe to investigate the viability of establishing a chip facility there with government assistance.

One 200mm gigafab (Fabs 2, 3, and 5) and one 300mm fab (Fab 7/7G) are located in the Singapore Woodlands campus of GF. In late 2019, GF transferred control of Fab 3E at the GF Singapore Tampines facility to Vanguard International Semiconductor, a fellow Taiwanese foundry (VIS). Prior to being purchased by GF in 2010, Chartered Semiconductor Manufacturing controlled the GF Singapore fabs.

In Malta, New York, GF also runs Fab 8, a 12-inch fabrication facility. The Fab 8 site has received more than US$15 billion in total capital investment, the majority of which is going toward cutting-edge 14/12nm technologies. GF’s Fab 8 is a pioneer in advanced manufacturing in the US, boasting 450,000 square feet of cleanroom space and ongoing expansion.

As part of the IBM Microelectronics company that GF earlier bought, it also acquired IBM’s Vermont facility. It is known as Fab 9 and is the biggest private employer in Vermont’s manufacturing sector.

In addition, the East Fishkill, New York location, which IBM first created in 1962, grew and developed into a significant R


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