The move strengthens GF’s role in the RISC-V ecosystem and the race for dominance in physical AI and real-time computing.
In a strategic step crucial for the future of efficient computing, GlobalFoundries (GF) has announced its acquisition of MIPS, one of the pioneers in RISC architecture and a provider of intellectual property (IP) for processors designed for critical applications in artificial intelligence (AI), industrial robotics, and autonomous driving.
The deal, officially announced on July 8, is subject to regulatory approvals and is expected to close in the second half of 2025. After the acquisition, MIPS will operate as an independent business unit within GlobalFoundries, maintaining its brand and customer relationships, but gaining access to GF’s manufacturing and logistical strength.
A Bet on RISC-V, Edge Computing, and “Physical AI”
The core of this deal lies in MIPS’s commitment to the open standard RISC-V—a processor architecture that has gained ground over alternatives like ARM, especially in environments requiring flexibility, energy efficiency, and cost optimization.
With its Atlas portfolio, MIPS has intensified its focus on real-time processors, edge processing, and embedded AI capabilities. Concurrently, its Atlas Explorer tool allows for simulation, optimization, and design tuning long before silicon fabrication, reducing costs and speeding up time-to-market.
“MIPS’s solutions align closely with industry’s emerging needs: specialized, secure, and low-power processing for distributed AI,” highlighted Niels Anderskouv, President and COO of GlobalFoundries. “This acquisition enables us to offer more flexible solutions, integrated with our differentiated manufacturing technologies.”
A Partnership Amid Industrial Changes
GF, the third-largest semiconductor manufacturer globally, has been repositioning itself as a key player outside the realm of silicon giants like TSMC and Samsung, focusing on custom designs, long-term partnerships, and specific applications such as automotive, industrial IoT, and secure communications.
Integrating MIPS will strengthen this strategy by providing a proprietary line of processor IP, increasingly necessary to deliver end-to-end solutions to customers—from manufacturing nodes to chip design.
“GlobalFoundries’s backing gives us scale, legal security, and industrial strength to accelerate our roadmap,” said Sameer Wasson, CEO of MIPS. “We are ready to lead the next phase of intelligent edge and embedded AI.”
Why Is This Deal Important?
The acquisition has deeper implications across multiple industries:
| Sector | Expected Impact |
|---|---|
| Automotive | Improvements in autonomous driving solutions, active safety, and in-vehicle processing |
| Industrial robotics | More efficient processing for robotic arms, computer vision, and control systems |
| AI infrastructure | Accelerated adoption of edge computing with distributed, secure AI |
| Data centers | New low-power architectures for high-density environments |
Additionally, it boosts the RISC-V ecosystem, considered a pillar for safeguarding technological sovereignty and reducing reliance on proprietary licenses.
The Rise of Physical AI
GF and MIPS explicitly target an emerging concept: physical AI—the ability to embed artificial intelligence algorithms directly into real-world devices, from security cameras to industrial sensors and smart appliances.
This paradigm demands specialized, low-power chips with real-time inference and secure connectivity—precisely the domain where MIPS has developed a competitive edge.
A Global Race for Edge Control
This acquisition unfolds in a context where major players like NVIDIA, Intel, AMD, and ARM are vying to dominate the new playing field of AI outside data centers. From home assistants to drones, autonomous vehicles, and smart factories, the battle increasingly centers on the network edge, where RISC-V solutions have a unique opportunity to become dominant.
Through this move, GlobalFoundries reinforces its value proposition against competitors and sends a clear message: integrating design capabilities with manufacturing infrastructure will be essential to leading the next wave of semiconductor innovation.
About MIPS:
With over 40 years of history, MIPS has pioneered RISC architectures for embedded systems. Today, it positions itself as a leader in secure, efficient processors for sectors like automotive, industrial, and edge computing, championing RISC-V architecture.
About GlobalFoundries:
GF is one of the world’s largest chip manufacturers, with fabs in the U.S., Europe, and Asia. It specializes in bespoke semiconductor solutions, working with key industries including automotive, telecommunications, defense, and smart devices.
via: GlobalFoundries