GlobalFoundries reportedly files for IPO, suggesting Intel acquisition isn’t in the cards

The Wall Street Journal reported last month that GlobalFoundries and Intel INTC, -0.95% were discussing a potential merger as Intel looks to ramp up its direct manufacturing amid a semiconductor shortage. Sources told Reuters that GlobalFoundries was concerned that a tie-up with Intel would harm relations with other customers, and that Intel had not made a formal offer.

GlobalFoundries was once the manufacturing arm of Advanced Micro Devices Inc. AMD, -3.83%, but spun out of that chip company in a deal that gave partial ownership to Mubadala Investment Co. , Abu Dhabi’s sovereign wealth fund that is now the majority owner of the entity. AMD, a fierce rival of Intel in chips for personal computers and servers, is still a major customer of GlobalFoundries.

Intel’s stock was quiet in after-hours trading Wednesday after the report was released. Intel shares have gained 4.8% so far this year, as AMD shares have increased 12.8% and the S&P 500 index SPX, -1.07% has increased 18.4%.