GlobalFoundries CEO: 'Nothing' to Intel reports

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Are Intel and GlobalFoundries heading toward an acquisition? GF's CEO downplayed deal reports, and is more focused on its own agenda. (SB/GettyImages)

GlobalFoundries CEO Thomas Caulfield in two different televised interviews late Monday refuted reports that Intel is working to acquire the company.

Caulfield told CNBC there was "nothing to that story" when asked about reports that Intel had been in talks to buy GF for around $30 billion. The Wall Street Journal was the first to report on Intel's interest. The CEO also reportedly told Bloomberg TV that GF is focused only on its planned IPO, likely to happen sometime next year, and on its ongoing worldwide fab expansion program.

The latest step in that program was announced this week, as GF unveiled an expansion of an existing fab and build-out of a new fab at its Malta, New York campus that ultimately will double the semiconductor manufacturing capacity of the site. Meanwhile, reports of GF owner Mudabala Investment Co.'s plans for an IPO emerged 

While Caulfield refuted the buyout reports, this story is likely to continue to have life this week as Intel prepares to report earnings on Thursday for the second quarter of 2021. Intel's previous outlook for the quarter suggested that its revenue would fall slightly for the period. Analyst expectations, however, are forecasting a sales drop of more than 9%compared to the same quarter in 2020. In any case, Intel is likely to face questions about the GlobalFoundries reports and the ongoing chip shortage during its Thursday earnings call.

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