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When GlobalFoundries announced its plan to acquire MIPS earlier this week, there was speculation that the company was once again changing its strategy to begin developing processors independently, thus competing with some of its customers. However, after communicating with GlobalFoundries, we confirmed that this is not the case; GlobalFoundries does not intend to transform into an Integrated Device Manufacturer (IDM). Instead, it aims to provide customers with “ready-to-use” computing IP to accelerate their product launch processes.
Erica McGill, GlobalFoundries’ Director of Corporate Communications, stated in an interview with Tom’s Hardware: “Acquiring MIPS will enhance GlobalFoundries’ ability to offer more complete and differentiated solutions to customers. By integrating MIPS’ mature RISC-V processor IP and software tools, GF customers will benefit from broader access to computing IP, shorter time-to-market, greater flexibility and openness, and superior technology aimed at high-growth markets. This initiative will position GF not just as a manufacturing partner but as a strategic partner providing foundational computing technology to help customers create smarter, faster, and more efficient products.”
The Acquisition of MIPS Will Not Turn GF into an IDM
GlobalFoundries reiterated its position as a pure foundry, emphasizing that this acquisition does not mean it will shift towards chip design or sales. Its true purpose is to simplify the system design process for customers—especially those new to chip development or seeking vertical integration—by providing ready-to-use IP modules. Concerns that GF would compete with its foundry-less customers are unfounded.
“We remain a pure foundry focused on helping customers build world-class products on our platform,” a GF spokesperson stated. “This acquisition will expand our capabilities, particularly in providing a more comprehensive service portfolio to customers developing chips for the first time or seeking vertical integration.”
By offering RISC-V processor IP, GlobalFoundries may indeed compete directly with existing IP suppliers like Andes Technology. However, GF believes that combining IP with its differentiated manufacturing processes and secure production capabilities will provide unique advantages to customers.
But It Will Enhance GF’s Value-Added Services
Typically, foundries provide customers with basic interface IP modules, while companies like Arm customize their processor cores for specific process nodes. After this acquisition, GF will become the first foundry to offer processor IP based on the open-source RISC-V instruction set architecture for computing applications, significantly increasing its attractiveness to new entrants.
The company plans to continue supporting MIPS’ processor core product line based on the open-source RISC-V architecture to meet various computing needs, thereby expanding GF’s service capabilities in new markets and applications.
McGill stated: “MIPS’ mature processor cores will complement GF’s existing IP product line, enabling customers to create differentiated products across various markets. This includes computing subsystems for automation platforms, embedded systems, and smart edge devices. After the transaction is completed, GF will continue to support MIPS’ RISC-V architecture-based instruction set processor portfolio and its extensive ecosystem. In addition to edge AI applications, the synergy between GF and MIPS is also well-suited for high-growth areas such as automotive, IoT, and data center infrastructure, which require real-time computing capabilities, security certification, and scalable system architectures.”
MIPS Will Operate Independently
Although MIPS will become a subsidiary of GF and provide IP products to its customers, MIPS will continue to operate independently, maintaining existing customer relationships and continuing current projects and collaborations, with support from the original team, ensuring that services and product supply remain uninterrupted. Additionally, MIPS will continue to collaborate with other foundries.
A GF spokesperson stated: “Following our strategy to operate MIPS as an open and independent IP supplier, there are currently no plans to change its product portfolio or customer collaboration methods. MIPS customers will continue to work with their original account managers and support teams, and all ongoing projects and agreements will remain unchanged without interruption.”
Reference link
https://www.tomshardware.com/tech-industry/semiconductors/exclusive-globalfoundries-says-mips-takeover-will-expand-its-business-without-creating-competitive-friction-with-its-clients
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