Below is an overview of AG Connect’s brief IT news today:
Chip group Intel wants to buy Global Foundries for $ 30 billion
Ericsson is accelerating the release of the 5G network in the United States
US chip group Intel is in talks to acquire its subsidiary Globalfounders in a $ 30 billion deal. This is what locals say to the business newspaper The Wall Street Journal. This will be Intel’s largest acquisition and will help the company strengthen its position in the global chip market.
Globalfoundaries Abu Dhabi Sovereign Wealth Fund is owned by Mubatala Investment. The company is said to be working on an IPO in New York, but sources say that Mubatala and Intel are in talks to acquire Globalfounders. The chip company itself will not be involved in those negotiations.
Intel has once again revealed its ambition to become a leading player in the global chip industry. The company has lost ground to rivals such as Taiwan DSMC and South Korean Samsung Electronics in recent years. Intel, led by CEO Pat Kelsinger, has announced it will allocate $ 20 billion this year to build two new factories in the US state of Arizona and plan to build more factories elsewhere in the world. Intel has a market capitalization of approximately $ 225 billion.
GlobalFoundries manufactures chips designed by other companies such as TSMC. Intel wants to play a strong role in the so-called foundry market. Such chips are used by large technology groups such as Apple, Nvidia and Amazon.
GlobalFoundries recently announced that it will allocate $ 4 billion to build a new chip factory in Singapore. According to the group, the new production space will help meet the strongest demand for chips. GlobalFoundries will expand its facilities in Germany and the United States. Here, each country gets $ 1 billion. CEO Tom Galfield thinks demand for chips will outweigh supply in the coming years. (ANP)
Swedish telecommunications equipment maker Ericsson has won a major contract to expedite the release of the US 5G network. It is about a multi-year contract with Verizon Communications, a US telecommunications company worth $ 8.3 billion.
Ericsson is benefiting from the increased demand for its network systems as Chinese rival Huawei’s equipment has been partially or completely banned by many countries. Last autumn, Swedish authorities decided to ban the network equipment of Chinese technology companies in the construction of 5G networks. Ericsson expects to continue to lose market share in China as Beijing takes similar steps to ban Swedish equipment.
Swedish company sales in China fell by 2.5 billion Swedish kronor last quarter, equivalent to 244 million euros. Ericsson recorded a turnover of nearly 5.4 billion euros in the second quarter. It was 1 per cent lower than the previous year, but on a comparable basis it was 8 per cent growth. The comparable base, among other things, excludes fluctuations in exchange rates. Ericsson’s profit increased 51 percent to 380 million euros.