GlobalFoundries (NASDAQ: GFS) stock jumped 5.9% Tuesday after the semiconductor manufacturer announced a definitive agreement to acquire MIPS, a leading supplier of AI and processor intellectual property (IP).
The acquisition will expand GlobalFoundries’ customizable IP portfolio and bolster its process technologies with enhanced IP and software capabilities. The deal includes MIPS’ RISC-V processor IP and software tools designed for real-time computing applications across autonomous mobility, industrial automation, data centers, and intelligent edge markets.
“MIPS brings a strong heritage of delivering efficient, scalable compute IP tailored for performance-critical applications, which strategically aligns with the evolving demands of AI platforms across diverse markets,” said Niels Anderskouv, President and COO of GlobalFoundries.
MIPS recently launched its Atlas portfolio, featuring compute cores for real-time processing and AI edge applications, along with Atlas Explorer, a virtual platform for performance optimization. Post-acquisition, MIPS will continue to operate as a standalone business within GlobalFoundries.
MIPS CEO Sameer Wasson described the deal as “the start of a bold new chapter for MIPS,” highlighting the enhanced ability to accelerate innovation and scale solutions.
The transaction remains subject to customary closing conditions, including regulatory approvals, with completion expected in the second half of 2025. MIPS has a 40-year legacy in RISC computing innovation, specializing in processor technology based on the open RISC-V instruction set architecture.