Intel makes a bold move

Second place is first loser [Click to view in browser](. Good afternoon, Intel (INTC) is tired of running second fiddle. After dominating the PC market for decades, the company has slipped far behind rival Advanced Micro Devices (AMD). Apparently, they’ve had enough. News hit the wire yesterday that Intel was looking to buy GlobalFoundries Inc. What’s the deal? At $30 billion, the possible acquisition would follow a raft of consolidation in the space. Analog Devices (ADI) bought Maxim Integrated Products (MXIM), Nvidia (NVDA) bought Arm holdings, and AMD bought Xilinx (XLNX). Although this is news to GlobalFoundries, who hasn’t heard from Intel yet. Back in March, Intel’s new chief executive Pat Gelsinger said the company wanted to become a chip manufacturer for others, a market currently dominated by Taiwan Semiconductor (TSM). And guess who is a major customer of GlobalFoundries? Advanced Micro Devices. Design vs foundry GlobalFoundries came into being when AMD spun off its manufacturing arm back in 2008, instead choosing to focus on chip design. Foundries semiconductor manufacturers that make chips for other companies. Internal fabrication plants don’t always work well as Intel has learned. While the plants themselves weren’t the problem exactly, Intel lost focus on innovation, falling behind its rivals in design. Eventually, they ran into manufacturing issues with their 14-nanometer chip which implied problems for more than six years. Over the past year, Intel has had to come to terms with its issues. But make no mistake, they’re still a wildly profitable company. More capacity now Everyone is adding capacity to manage the global semiconductor shortage. What makes this possible deal interesting is how it expands Intel’s capabilities. Right now, Intel’s manufacturing rules are specifically designed for Intel. That makes their current abilities somewhat restrictive. Adding a foundry arm adds more flexibility for Intel to expand both its own production as well as for its customers. Our hot take The deal would add a sorely needed boost to Intel’s flagging business. But it won’t solve all their problems. Intel needs to open itself up to different ways of manufacturing and the types of microprocessors that it sells. Otherwise, it risks becoming too niche. For more insights into the financial world, check out some great content from our publisher network below. Power Plays [5 Best Safe Dividend Stocks to Buy Now]( In this article we will take a look at the 5 best safe dividend stocks to buy now. To read our detailed analysis of dividend investing, go to 10 Best Safe Dividend Stocks to Buy Now. [Read More]( [Invest in digital currencies, with ease]( Access the world’s top digital currencies and build your crypto portfolio. Trade $1,000 and get a bonus $50 for a limited time. 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