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For embedded designs with a very long lifecycle, that predictability, along with cost-cutting and time-to-market, matters more than chasing leading-edge density or the highest performance. In fact, many fabless companies among those building custom silicon for emerging applications lack internal resources to assemble a full compute stack from scratch. Traditionally, these customers would license CPU IP from one vendor, DSP or AI blocks from another, and only then begin mapping the design onto a foundry's process technology. With TSMC's OIP and Arm's portfolio of IPs, the path to silicon is rather straightforward, as the ecosystems are vast.
With the takeover of MIPS and ARC, GlobalFoundries can offer its clients a bundle of silicon-proven IPs from one shop, which means even faster time to market, greater flexibility with RISC-V and ARC, and perhaps a lower price. While GlobalFoundries avoids explicitly marketing this as vertical integration, the technical implication the company revealed earlier this year in an interview with Tom's Hardware made clear: processor IP, software tools, and fabrication are now coordinated inside a single organization.
GlobalFoundries is deliberately reshaping its role in the semiconductor value chain by combining its manufacturing capability with in-house processor IP — built around RISC-V and the newly acquired Synopsys ARC portfolio, as well as silicon photonics and optical connectivity enabled by Advanced Micro Foundry (AMF) and InfiniLink acquisitions — to offer customers a tightly integrated path from architecture to silicon. The strategy targets a wide range of emerging applications across a variety of verticals, including automotive, embedded, industrial, and physical AI markets.
For GlobalFoundries's customers, the ARC + RISC-V combination provides a standards-based ISA for general-purpose compute, paired with the ability to introduce workload-specific instructions and accelerators without negotiating changes with the owner of a proprietary architecture, such as Arm.
This might open GlobalFoundries some additional business opportunities with newly established fabless chip designers with limited budgets, clients with requirements for sovereign chip designs without massive upfront investments, and customers operating under export controls and looking for a partner with policy-resilient IP and manufacturing. Keeping in mind location of GloFo's fabs in Asia, Europe, and the U.S., the strengthened IP portfolio makes even more sense.
With two CPU IP-related acquisitions in less than a year, we can now only wonder what is next for GlobalFoundries: will it focus on integration of MIPS and ARC into its organization, or it will pursue more M&A activities?
If the company is looking forward to more acquisitions, the most logical thing to do would be to pursue adjacent technologies, enabling M&A that deepens its platform without turning it into an Integrated Device Manufacturer or putting it in conflict with customers or partners. Among the most probable scenarios for the company would be to obtain controller, connectivity, and security IP to further simplify the development of chips for its clients. Another move could be acquiring an IP focused on advanced packaging.
A less likely move is to purchase an accelerator or domain-specific IP to address specific applications. So far, GlobalFoundries has focused on general IP, which can be deployed broadly.
Another option for the company could be taking over software or middleware assets for automotive, embedded, or industrial applications. Software certification is a long process, so offering customers a solution that includes both silicon-proven hardware and functionally safe software and middleware could produce another layer of opportunities for GlobalFoundries.
The acquisitions of MIPS and ARC represent a calculated expansion of GlobalFoundries's value proposition that extends beyond silicon manufacturing production and now spans to the level of physical IP and software.
To a large degree, GlobalFoundries is about to become a platform partner for its clients as it not only makes and packages chips, but also defines IP that is inside. This strengthens GloFo's competitive position against other foundries as well as against TSMC, whose OIP ecosystem serves the same purposes as GlobalFoundries's in-house IP.
For customers, the ARC + MIPS integration will offer faster time-to-market, deeper customization, increased efficiency, and safeguards against geopolitically motivated limitations.
Anton Shilov is a contributing writer at Tom\u2019s Hardware. Over the past couple of decades, he has covered everything from CPUs and GPUs to supercomputers and from modern process technologies and latest fab tools to high-tech industry trends. ","collapsible":{"enabled":true,"maxHeight":250,"readMoreText":"Read more","readLessText":"Read less"}}), "https://slice.vanilla.futurecdn.net/13-4-11/js/authorBio.js"); } else { console.error('%c FTE ','background: #9306F9; color: #ffffff','no lazy slice hydration function available'); } Anton Shilov Social Links Navigation Contributing Writer Anton Shilov is a contributing writer at Tom’s Hardware. Over the past couple of decades, he has covered everything from CPUs and GPUs to supercomputers and from modern process technologies and latest fab tools to high-tech industry trends.
Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/pc-components/cpus/SPONSORED_LINK_URL
- https://www.tomshardware.com/pc-components/cpus/globalfoundries-acquires-arc-and-risc-v-ip-from-synopsys-company-gains-critical-cpu-ip-as-it-grows-beyond-being-a-mere-chipmaker#main
- https://www.tomshardware.com
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