GF's bundling of MIPS's IP with its manufacturing processes creates a unique turnkey solution, giving it a competitive edge in markets requiring real-time processing and low power consumption, supported by its U.S. manufacturing expansion.

GlobalFoundries (GF) has announced the acquisition of MIPS, a leading supplier of AI and processor IP, to strengthen its portfolio with advanced RISC-V processor technology and software tools for real-time computing.

This strategic move aims to expand GF's capabilities in offering customizable, open platform solutions tailored for AI, automotive, industrial automation, and data center markets, with MIPS continuing as a standalone business.

Major tech companies such as Apple and AMD are already collaborating with GF, positioning it as a key player in domestic semiconductor manufacturing and AI chip development.

GF is committed to delivering power-efficient, high-performance semiconductor solutions across various high-growth markets, leveraging its global manufacturing footprint.

The company is shifting focus to developing CPU cores based on the open RISC-V architecture and AI processing units, especially for automotive and edge computing markets.

The integration will enable GF to access advanced process nodes and secure fabrication sites, facilitating faster development cycles and opportunities to serve clients requiring secure manufacturing.

GF's role extends beyond manufacturing to assisting in chip design, which enhances its offerings for customizable solutions, despite the technical and logistical challenges of integrating MIPS's IP.

While competition from TSMC and Intel exists, GF's control over both manufacturing and AI chip design tools provides a significant competitive advantage.

MIPS CEO Sameer Wasson highlighted that joining GF will accelerate innovation and scale solutions in Physical AI, with MIPS continuing as a standalone business to maintain stability and credibility.

The acquisition, expected to close in the second half of 2025 pending regulatory approval, will provide GF access to advanced process nodes and secure fabrication sites, enhancing its ability to serve clients requiring secure manufacturing, including the U.S. Department of Defence.

Wasson emphasized that the edge AI market is at a pivotal point, driven by increasing intelligence in everyday devices, and presents a larger opportunity than past markets like graphics or smartphones.

Investors are encouraged to consider buying GF stock upon its upcoming public listing, as the deal positions GF as a leader in edge AI technology and makes it a sector-defining investment opportunity, especially benefiting RISC-V and edge AI hardware firms.