GlobalFoundries Acquires MIPS: A Strategic Inflection Point in the Semiconductor Landscape?

In July 2025, GlobalFoundries officially announced its acquisition of MIPS. While not as headline-grabbing as a merger between industry giants, this move has stirred significant waves within the semiconductor sector. More than a typical “IP + process” consolidation, the deal reflects a deeper reconfiguration of global computing power infrastructure.

From the U.S. to China, from architecture vendors to system integrators, this transaction touches the very foundations of the semiconductor supply chain.

Q1: Why did GlobalFoundries acquire MIPS? What’s the strategic value?

This acquisition marks a deliberate move to capture strategic ground in the post-Arm computing era.

MIPS, once on par with Arm, had faded into relative obscurity but recently reinvented itself by pivoting toward the open RISC-V architecture. The company now offers IP solutions like the Atlas and P8700 series targeting automotive and edge AI applications.

GlobalFoundries sees value in the following dimensions:

Filling architectural gaps: Owning native IP enables deeper process customization and reduces dependency on Arm licenses;

Targeting high-growth verticals: AI inference, industrial control, and autonomous driving increasingly demand custom computing cores;

Building ecosystem stickiness: Tightly coupling IP with process technology allows GF to offer end-to-end solutions—from architecture to packaging.

This marks a shift in foundry identity—from contract manufacturer to integrated system solution provider.

Q2: Hasn’t MIPS already been marginalized? Does it still matter?

Its influence is shifting—from traditional CPU markets to the new battlefield of open architecture and custom compute.

While classic MIPS32/64 cores have largely exited mainstream markets, the company’s RISC-V transformation is gaining renewed attention from investors and the industry:

Compared with SiFive and Andes, MIPS offers mature commercialization and licensing infrastructure;

Unlike newer RISC-V startups, its IP has already been adapted to automotive, AI, and industrial use cases;

Its flexibility for foundry-level integration is precisely what GlobalFoundries values most.

To global chip designers, the rebirth of MIPS signals a diversification of the compute IP landscape—there will be more than just Arm and SiFive in the future.

Q3: Which countries and supply chain sectors are most affected?

This is a global event with implications across the architecture-design-manufacturing value chain. The impact spans the U.S., Europe, China, and Asia-Pacific.

United States

As a key strategic foundry for the U.S., GF’s acquisition of MIPS enhances its ability to offer a vertically integrated IP-to-silicon pathway. For startups, defense contractors, and automotive SoC designers, this presents a new window for architecture collaboration.

Europe

Germany, France, and other countries strong in automotive and industrial chips are increasingly exploring RISC-V. With GF’s fabs in Germany, localized MIPS IP integration could enhance Europe’s drive for semiconductor sovereignty.

China

MIPS IP had been widely used via local licensees (e.g., Loongson, Ingenic, Realtek). This deal may trigger licensing realignments and accelerate China’s shift toward indigenous architectures like LoongArch or domestic RISC-V cores.

Other Asian Markets

In Korea, Japan, and India, RISC-V ecosystems are emerging. This acquisition may force local foundries and IP vendors to redefine their collaboration strategies and value propositions.

Q4: Which chip products and companies are most affected?

This deal could reshape product lines ranging from embedded MCUs to edge AI SoCs, automotive CPUs, and communication chips.

Historically, MIPS architecture was widely adopted in low-power, cost-sensitive embedded systems and mid-range processors. With GF now fusing MIPS’ RISC-V IP with its process technologies, the following products could see notable impact:

Microchip PIC32MX / PIC32MZ: These MIPS32-based MCUs are used in industrial control, small appliances, and audio applications. Future iterations are likely to shift toward RISC-V or Arm;

Ingenic X2000 / X1000: Popular in smart toys, AI voice systems, and educational terminals, these still run on MIPS cores and are expected to transition to self-developed RISC-V designs soon;

MediaTek MT7621AT and Realtek RTD1296: Both rely on MIPS64 and power routers, NAS, and home gateways. While legacy products will persist, new designs have already pivoted to Arm;

MIPS Atlas / P8700: These are MIPS’ new RISC-V cores for AI inference and automotive control. Under GF, they will become flagship IPs for tightly coupled “IP + process” offerings.

For many chipmakers, this is a pivotal moment—to reassess architectural roadmaps, licensing risks, and ecosystem stability in light of tighter process-IP integration.

Q5: Is China the only region affected? Or is this a global trend?

China is significantly affected, but this is a global restructuring of architectural power.

China’s chip firms (e.g., Loongson, Ingenic, CIP United) had extensive MIPS usage, and the acquisition will likely accelerate their migration to domestic IP. Yet this is not just a Chinese issue—it’s a worldwide realignment:

Open-source architectures like RISC-V are moving from experimental to mainstream;

Architecture and process are no longer separate—they form a unified value chain;

Companies that control the “distribution rights of computing power” will command far more influence than traditional foundries.

Conclusion: Architecture defines the rules, manufacturing determines realization

GlobalFoundries’ acquisition of MIPS is not just an industrial transaction—it is an attempt to reshape the upper logic of the semiconductor industry.

It sends a clear message:
In the coming decade, only companies that master architecture, process, and application insight together will be capable of building sustainable compute ecosystems.

This shift warrants serious attention from chip designers, system integrators, foundries, and policymakers alike.