With TSMC commanding the lion's share of foundry orders for data center AI accelerators, second-tier players like UMC, GlobalFoundries (GF), and SMIC are urgently repositioning to tap into the AI market. Each is adopting a unique strategy to stay relevant in a rapidly intensifying competitive field.
UMC has been quietly enhancing its advanced packaging capabilities since 2024 through a collaboration with Taiwanese OSAT leader ASE Holdings. It has reportedly landed advanced packaging orders from Qualcomm, likely targeting edge AI, marking a strategic move into markets less dependent on cutting-edge nodes.
SMIC has avoided public discussion of sub-7nm process ambitions, but despite escalating US export restrictions, the company is quietly advancing in both edge and cloud AI domains, albeit under significant regulatory pressure.
GlobalFoundries snaps up MIPS amid growing RISC-V uncertainty
GlobalFoundries has announced its acquisition of MIPS, a veteran in RISC architecture, marking a rare integration of foundry and IP provider. The deal highlights GF's bet on the long-term potential of RISC-V processors in edge AI, even as industry peers retreat from similar plays.
Coinciding with the MIPS deal, Chinese social media began spreading unverified reports that SMIC had acquired the GPU IP unit of UK-based Imagination Technologies through a wholly owned subsidiary, allegedly with approval from Chinese and EU regulators.
Imagination swiftly denied the rumors, stating via its official WeChat channel on July 8 that the claims were "entirely fabricated." The company emphasized it had not agreed to sell its GPU IP business and warned the misinformation could damage its brand and partner trust. It also launched legal and monitoring efforts to track the source.
Geopolitics and legacy weigh heavily on Imagination, MIPS
While MIPS has found stability under GF, Imagination remains cautious about acquisition prospects amid rising geopolitical sensitivities tied to Chinese ownership. Now owned by China-linked fund Canyon Bridge, the UK-based firm lost major business after Apple's shift to in-house GPUs. Despite Chinese backing, its UK presence makes any SMIC tie-up, real or rumored, fraught with political risk.
According to ICsmart, even if SMIC could technically acquire Imagination from Canyon Bridge, the move might trigger fresh sanctions, potentially harming both companies more than it helps.
The MIPS deal also puts a spotlight on the instability within the RISC-V ecosystem. European firm Codasip is now up for sale, and US-based Esperanto Technologies has shelved plans for a 1,088-core RISC-V AI accelerator. These setbacks contrast with GF's bullish stance, raising doubts about whether MIPS can deliver meaningful value.
MIPS has weathered decades of turbulence. Founded at Stanford by John Hennessey and Chris Rowen, it was acquired by SGI in 1992, spun off in 1998, and then bought by Imagination in 2013 before being passed to Tallwood Ventures in 2017. Apple's 2017 split with Imagination triggered a fresh downturn, leading to MIPS's 2018 sale to Wave Computing, until Wave's 2020 bankruptcy forced yet another reset focused on RISC-V.
MIPS CEO Sameer Wasson said joining GF gives the company both credibility and a stable corporate parent, opening doors to growth opportunities previously out of reach. He added that with RISC-V firms under growing pressure, MIPS gains long-term viability and deeper customer engagement as part of GF.
The MIPS-GF tie-up has received mixed reviews, given MIPS' rocky history. Meanwhile, Imagination continues to walk a fine line, seeking its own AI breakthrough while navigating political and ownership complexities.
Article edited by Jack Wu
