- GlobalFoundries was spun off when AMD determined to go fabless 16 years in the past
- Thomas Caulfield’s management made GloFo worthwhile; now rumors hyperlink him to Intel
- A merger might assist Intel, however regulatory hurdles may block the deal
GlobalFoundries (GloFlo) was based in March 2009 when a struggling AMD spun off its manufacturing division to go fabless, a transfer designed to assist it survive within the extremely aggressive semiconductor business.
GloFo ultimately turned a key participant within the foundry enterprise, with a worldwide manufacturing footprint throughout the US, Europe, and Asia, specializing in specialty chips somewhat than competing at the vanguard. Beneath the management of Thomas Caulfield, who turned CEO in 2018, GlobalFoundries pursued a method that led it to change into the third-largest semiconductor foundry by income, and a public itemizing in 2021.
Nevertheless, hypothesis is presently brewing that Caulfield could possibly be set to change into the following CEO of AMD’s very long time chip rival, Intel. As reported by eeNews Europe, the rumors started following an unexpected leadership change at GlobalFoundries. Caulfield is about to maneuver from CEO to govt chairman, with Tim Breen, who has additionally been on the firm since 2018, taking on as CEO. This shift has led observers to query whether or not Caulfield could also be making ready for a management position at Intel, which has been with no everlasting CEO since Pat Gelsinger’s departure in December 2024.
Regulatory hurdles
Caulfield has intensive expertise in semiconductor manufacturing however has not led a product firm like Intel. This has fueled ideas that as a substitute of merely taking on as CEO, he might oversee a merger between Intel and GloFo. In such a situation, eeNews Europe means that Caulfield would change into govt chair of the mixed entity, with Michelle Johnston Holthaus main Intel’s product enterprise and Breen integrating GlobalFoundries into Intel Foundry.
A merger would positively profit each events. Whereas AMD has seen its fortunes soar in current occasions, intel has been struggling. Becoming a member of forces with GlobalFoundries might permit the merged firm to supply a broader vary of producing capabilities.
Including additional gas to the rumor mill, eeNews Europe experiences that observers on a Reddit stream famous a current buy of 8,913,000 Intel shares at $19.29. This uncommon transaction occurred two days earlier than GlobalFoundries introduced its management modifications, drawing comparisons to the $172 million inventory incentive given to Gelsinger when he turned Intel’s CEO in 2021.
Any potential merger would in fact face regulatory hurdles, significantly in China, which beforehand blocked Intel’s try to amass Tower Semiconductor. If approval proves troublesome, eeNews Europe suggests Intel might appoint Caulfield as CEO whereas sustaining shut ties with GlobalFoundries.
You may also like
Source link
