A story in the Wall Street Journal late Thursday, citing unnamed people familiar with the matter, said such a deal would benefit Intel's efforts to make more chips for other tech companies and, if completed, would rank as Intel's biggest acquisition yet.
The Journal report cautioned it's not certain the deal will come through, and it's possible GlobalFoundries would go ahead with its planned IPO. GlobalFoundries is based in Malta, N.Y. and is owned by Mubadala Investment Co., an investment division of the Abu Dhabi government.
According to the Journal report, a spokeswoman for GlobalFoundries said it isn’t in discussions with Intel.
Intel CEO Pat Gelsinger said earlier this year that the company would seek to become a chip manufacturer for other companies and sought to invest more than $20 billion in chip-making facilities in the U.S.
In April, Jim Cramer interviewed Gelsinger on his Mad Money TV show.
He told Cramer Intel is taking a more collaborative approach to IDM, or integrated design and manufacturing, working closely with cloud providers to optimize chips and solutions for specific applications. Even small improvements, he said, translate into huge gains at scale.
Gelsinger also told Cramer it's critical that America reclaim its role as a leading manufacturer of semiconductors. Twenty years ago, America had 37% of the market share for semiconductors. Today, it's just 12%. Other governments are investing in technology, Gelsinger added, and America needs to invest as well.