According to a Taiwanese source, China-based Hua Capital Management has approached Globalfoundries in order to convince the firm to be acquired. Hua Capital Management is not a name that should be forgotten so easily, since this is the firm that was successfully able to acquire smartphone camera sensor manufacturer OmniVision.

Only recently, we had reported information that the company will be releasing two camera sensors, out of which one of them will be able to record 4K videos at 60FPS, indicating that that Chinese are slowly inching their way to the top. According to the source, Abu Dhabi’s Advanced Technology Investment (ATIC), which happens to be a major shareholder of Globalfoundries, is rumored to release its holdings from the company, which will make the acquisition deal ever so simple for Hua Capital Management.

Currently, Semiconductor Manufacturing International Corporation (SMIC), which is the largest wafer foundry house situated in China, is only manufacturing 28nm chips. If the acquisition of GlobalFoundries is confirmed, then the semiconductor manufacturing company will gain access to the 14nm FinFET technology, allowing it leapfrog over TSMC; a company which is intending on jumping from 16nm FinFET to 10nm FinFET.

SMIC is currently under agreement to mass produce 14nm chips for Qualcomm, IMEC and Huawei in 2020. With the acquisition confirmed, the company will be able to secure more clients in the foreseeable future. However, there is one hurdle that stands in the way of the acquisition. GlobalFoundries has the 14nm FinFET process licensed by Samsung, which will most likely forbid the acquisition to take place in order to put an end to any competition that might surface to overthrow the tech giant.

With Samsung already racing against TSMC to see which firm will successfully be able to produce 10nm FinFET process, the last thing the South Korean company needs is to have another foe appear to derail its progress.

By: DocMemory
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