GlobalFoundries has finalized a deal to purchase MIPS, a reputable chip design company known for its expertise in RISC-V processors. This strategic move is designed to enhance GlobalFoundries’ foothold in AI-driven network infrastructure, especially at the edge.
Under the new agreement, MIPS will operate independently as a separate entity. With a focus on processor architectures, MIPS will complement GlobalFoundries’ semiconductor manufacturing capabilities.
The decision to prioritize MIPS is rooted in the company’s advancements in AI chip design. MIPS has transitioned towards RISC-V, an open instruction set architecture that supports reduced instruction set computing. This shift has garnered significant traction among chipmakers and cloud companies seeking greater flexibility beyond conventional processor licensing models.
MIPS has enlisted executives from AMD and competitor RISC-V firm SiFive to drive this transformation. The Atlas processor lineup features compute cores tailored for low-latency tasks, real-time processing, and edge AI applications. This positions MIPS well for smart routers, switches, and base stations that demand rapid decision-making in close proximity to the network.
By integrating MIPS into its operations, GlobalFoundries gains access to in-house processor IP. This, coupled with its manufacturing capabilities, presents an attractive proposition for hardware manufacturers developing chips for telecom and enterprise networks. Notable clients such as Cisco and Nokia, reliant on custom SoCs for their 5G and networking equipment, stand to benefit from this collaboration.
The Rising Interest in Edge AI
Edge AI has emerged as a prominent area of interest as organizations seek to process data nearer to its source. This approach enhances efficiency by reducing latency, minimizing bandwidth consumption, and bolstering reliability for time-sensitive applications.
Current investments in edge AI primarily target on-premises equipment utilized by enterprises, particularly in private networks, smart manufacturing, and security systems.
Telecom operators are spearheading some of these initiatives. For example, Verizon collaborated with Nvidia to support enterprise AI workloads. While edge AI has yet to yield substantial returns for most players, IDC forecasts a surge in the market. The research firm predicts that spending on edge computing will reach $380 billion by 2028, fueled in part by AI deployments.
With MIPS now part of its portfolio, GlobalFoundries aims to position itself as a key player in supporting this transition. By leveraging its chip design and fabrication capabilities, the company can offer tailored solutions for AI workloads in compact, energy-efficient devices deployed at the network edge.
Undisclosed Deal Terms
Specifics regarding the acquisition, including the purchase price, have not been revealed. The most recent valuation for MIPS dates back to 2017, when Tallwood Venture Capital acquired it from Imagination Technologies for $60 million.
MIPS has changed ownership several times since then. In 2018, Wave Computing acquired it, subsequently restructuring and reintroducing the MIPS brand. In 2019, CIP United secured exclusive rights to the MIPS architecture for mainland China and related regions in a separate $60 million deal, a pact unaffected by GlobalFoundries’ acquisition.
The acquisition is slated to conclude in the latter half of 2025, subject to regulatory approval.
(Photo by Igor Omilaev)
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