When GlobalFoundries announced plans to acquire MIPS earlier this week, it looked like the company decided to change its strategy once again and build its own processors, thus competing with some of its customers. However, after talking with the company, we can confirm that this is not the case and that GlobalFoundries does not have ambitions to become an integrated device manufacturer. Instead, it will be able to offer a pret-a-porter compute IP to its clients to speed up their time to market.
"The acquisition of MIPS will enhance GlobalFoundries’ ability to deliver more complete and differentiated offerings to its customers," Erica McGill, director of corporate communications at GlobalFoundries, told Tom's Hardware. "By integrating MIPS' proven RISC-V processor IP and software tools, GF customers will benefit from broader access to compute IP, improved time-to-market, greater flexibility and openness, and better technologies for high-growth markets. The move will position GF as a more strategic partner, offering not just manufacturing but also foundational compute technologies that will help customers build smarter, faster and more efficient products."
MIPS will not make GF an IDM
GlobalFoundries reiterated its status as a pure-play foundry, saying the acquisition does not signal a pivot toward designing or selling chips directly. Instead, the goal is to support customers — especially those new to silicon development or seeking vertically integrated solutions — with ready-to-use IP blocks that simplify system design. Concerns that this move could turn GlobalFoundries into a competitor for its own fabless clients are unsubstantiated.
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"We remain a pure-play foundry focused on enabling our customers to build world-class products on our platforms," said the spokesperson for GlobalFoundries. "The acquisition expands our capabilities to better support fabless customers with a more comprehensive set of offerings, especially for first-time silicon builders or those targeting vertical integration."
By offering RISC-V processor IP, GlobalFoundries acknowledges it may now compete with established IP vendors such as Andes Technology. However, it believes the ability to pair IP with differentiated manufacturing processes and secure production gives it a distinct advantage in the market.
But will enhance GF's value-added services
Foundries tend to offer various IPs to their customers, but these are relatively simple IPs, such as interfaces. Companies like Arm do offer their cores tailored for select process technologies, though. However, GF will be the first contract chipmaker to offer compute IPs based on the open-source RISC-V instruction set architecture (IPs). This will greatly enhance the value of its services to many customers among newcomers.
The company plans to support MIPS' portfolio of processor cores built on the open RISC-V architecture, which will serve compute needs in a variety of applications, thus enhancing GF's ability to serve new markets and applications.
"MIPS' proven processor cores will complement GF's existing IP offerings, enabling customers to build differentiated products across a wide range of markets," said McGill. "This includes compute subsystems for autonomous platforms, embedded systems, and intelligent edge devices. Following the closing, GF is committed to supporting MIPS' portfolio of open RISC-V-based instruction set architecture (ISA) processors and its broader ecosystem. Beyond edge AI applications, the combined capabilities of GF and MIPS are particularly well-suited for high-growth sectors such as automotive, internet of things, and datacenter infrastructure applications. These segments demand real-time compute, safety certification, and scalable architectures."
MIPS will remain independent
While GlobalFoundries will own MIPS and will offer its proven IP to its clients, MIPS will continue to operate independently, maintaining current customer relationships and honoring existing projects and agreements. Clients will continue working with their established account and support teams. The company stressed that there will be no disruptions to service or product availability. In addition, MIPS will continue working with other foundries.
"In line with our strategy to operate MIPS as an open and independent IP provider, there are no plans to change its current offerings or how customers engage with the company," said the spokesperson. "MIPS customers will continue working with their existing account and support teams just as before, and all ongoing projects and agreements will carry on without interruption."
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