GlobalFoundries Completes Acquisition of MIPS, Enhances AI and Edge Computing Capabilities

GlobalFoundries has completed its acquisition of MIPS, strengthening its position as a global leader in differentiated semiconductor manufacturing and enhancing its capabilities in AI, edge computing, and high-growth markets. The combination of GF and MIPS brings together decades of expertise in advanced semiconductor manufacturing and processor IP innovation, enabling GF to deliver more differentiated solutions. MIPS is expected to continue operating as a standalone business within GF.

GlobalFoundries (GFS) has completed its acquisition of MIPS, a leading supplier of AI and processor IP. This strategic move aims to enhance GF's semiconductor manufacturing capabilities and strengthen its position in AI, edge computing, and high-growth markets. The acquisition was announced on August 14, 2025, and is expected to close in 2025 [1].

The combination of GF and MIPS brings together decades of expertise in advanced semiconductor manufacturing and processor IP innovation. This synergy enables GF to deliver more differentiated solutions to meet the growing demand for energy-efficient, high-performance computing at the edge and beyond. MIPS will continue to operate as a standalone business within GF, maintaining its existing licensing model while serving customers across various technology sectors [1].

The acquisition expands GF's IP offerings, strengthens its portfolio differentiation, and brings in engineering talent to accelerate AI and compute innovation. GF's 22FDX MRAM platform and 12 LP plus technology, which enable non-volatile automotive microcontrollers and low-power AI devices, respectively, will benefit from MIPS' processor IP innovation [2].

GlobalFoundries' strategic expansion in the automotive and Edge AI sectors has been driven by a series of design wins and partnerships. In Q2 2025 alone, GF secured 36 design wins, bringing its total to nearly 200 across all end markets. This momentum is a result of GF's differentiated technology portfolio and strategic partnerships, such as its exclusive manufacturing agreement with Continental for advanced electronics and semiconductor solutions [2].

The acquisition of MIPS is a significant catalyst for GF's growth. By integrating MIPS' RISC-V IP portfolio, GF is enhancing its offerings in Edge AI applications, enabling customizable, high-efficiency processor cores for edge devices. This acquisition not only accelerates GF's time-to-market but also strengthens its ecosystem, making it a more attractive partner for AI startups and automotive OEMs [2].

For investors, GlobalFoundries presents a compelling case. The company is capitalizing on secular trends, such as the rise of AI, the electrification of vehicles, and the decentralization of computing to the edge. Its design win momentum and differentiated technology position it as a must-own semiconductor play, particularly in a landscape where many peers are still playing catch-up [2].

With a forward P/E of ~12x, GF is trading at a discount to industry peers like TSMC (TSM) and AMD (AMD), despite outpacing them in automotive and Edge AI design wins. GF's focus on high-margin, differentiated technologies is driving margin expansion, with gross margins expected to cross 35% in 2025 [2].

References:
[1] https://www.stocktitan.net/news/GFS/global-foundries-completes-acquisition-of-f9ayowg5vsew.html
[2] https://www.ainvest.com/news/globalfoundries-strategic-expansion-automotive-edge-ai-markets-play-redefining-semiconductor-landscape-2508/