Supreme Irony: AMD Dismissed GloFo to Survive; Now Intel Might Merge with the Foundry to Achieve the Same.

GlobalFoundries (GloFo) was founded in March 2009 as a result of AMD's decision to spin off its manufacturing division and adopt a fabless model, with the goal of surviving in the competitive semiconductor industry. Since then, GloFo has become a key player in the foundry sector, with a strong manufacturing presence in the United States, Europe, and Asia, focusing on specialized chips instead of competing at the cutting edge of technology.

Under the leadership of Thomas Caulfield, who took over as CEO in 2018, GlobalFoundries implemented a strategy that led it to become the third largest semiconductor foundry by revenue, completing its IPO in 2021. Currently, rumors are circulating about a potential appointment of Caulfield as the new CEO of Intel, AMD's historic competitor. This speculation arose following a sudden change in GloFo's leadership, where Caulfield will transition from CEO to executive chairman, leaving the management to Tim Breen, who also joined the company in 2018.

This leadership change has raised questions about a possible role for Caulfield at Intel, which has not had a permanent CEO since Pat Gelsinger's departure in December 2024. Although Caulfield has extensive experience in semiconductor manufacturing, he has not led a product company like Intel, which has fueled the idea that he could be destined to oversee a merger between Intel and GloFo. If it materializes, it is suggested that Caulfield would assume the role of executive chairman of the resulting entity, with Michelle Johnston Holthaus in charge of Intel's product business and Breen responsible for integrating GlobalFoundries into Intel Foundry.

A merger would benefit both companies, given that AMD has performed exceptionally well recently, while Intel has faced difficulties. Joining forces could generate greater manufacturing capabilities. Additionally, an unusual purchase of 8,913,000 shares of Intel at $19.29, two days before the announcement of the change in leadership at GlobalFoundries, has been reported, which has been compared to a $172 million stock incentive that Gelsinger received upon becoming CEO of Intel in 2021.

Any potential merger would face regulatory hurdles, especially in China, where Intel's previous attempt to acquire Tower Semiconductor was blocked. If approval proves complicated, it is suggested that Intel could appoint Caulfield as CEO while maintaining close ties with GlobalFoundries.