09.07.2025

GlobalFoundries Acquires MIPS: A Strategic Milestone in AI and Edge Computing

Announcement of the Acquisition

The announcement of GlobalFoundries’ (GF) acquisition of MIPS marks a significant strategic step for the US-based chip contract manufacturer. The aim is to significantly strengthen its portfolio in the field of Artificial Intelligence (AI) and Edge Computing and to enhance competitiveness in promising markets.

Background of the Acquisition

GlobalFoundries is one of the world’s leading manufacturers of semiconductor chips (foundry). MIPS is regarded as an established provider of processor IPs, particularly in the field of AI and computing power. The acquisition is intended to enable GF to expand its offering with state-of-the-art RISC-V processor IPs and software tools for real-time computing.

Strategic Importance

The acquisition is considered strategically important as it provides GF access to the following areas:

  • Autonomous Mobility: Strengthening the position in driver assistance systems and autonomous vehicles.
  • Industrial Automation: Expanding the offering for industrial applications with high reliability and real-time requirements.
  • Datacenter & Edge Computing: Improved solutions for AI applications at the network edge and in data centers.
  • Intelligent Edge Devices: Integration of specialized AI cores for edge applications.

Through the acquisition, GF can provide its customers with more flexible solutions based on its own manufacturing technologies – a clear competitive advantage over pure IP providers without their own production.

Technological Additions

MIPS recently expanded its processor portfolios with the Atlas portfolio. This includes:

  • Realtime Compute Cores: For time-critical applications.
  • Specialized AI Cores: For efficient AI processing at the network edge.
  • Atlas Explorer Virtual Platform: A virtual development tool to optimize performance, energy consumption, and space requirements early in the development cycle.

These technologies will continue to be operated as an independent business unit within GlobalFoundries after the deal is completed.

Market Reaction & Outlook

The news was received positively by the market: GlobalFoundries’ stock surged significantly (+6.5%) after the announcement. The deal is expected to close in the second half of 2025, subject to regulatory approvals. MIPS will operate independently and maintain existing partnerships with other foundries and customers.

For investors, this acquisition is particularly interesting as it holds the potential to position GF as an integrated provider of semiconductor solutions – not just as a pure contract manufacturer – in the long term. This will enable the company to tap into new growth markets and better compete against rivals. In summary: The acquisition sustainably strengthens GlobalFoundries in the fields of AI, edge, automotive, industrial automation, and datacenter market segments – all key areas for future growth in the semiconductor industry.