Toshiba eyes up GlobalFoundries for outsourced chips -

Toshiba is working on a deal with GlobalFoundries. It wants to outsource fabrication of advanced system chips to the firm, according to Nikkei's sources

If the talks go smoothly, it'll be a big deal for GlobalFoundries, which will join the likes of Samsung in making chips on Toshiba's behalf. Toshiba recently decided to outsource these processes as it tightened its belt and does not want to spend its cash on new fabs.

Doug Grose, chief executive officer of the major American foundry, told Nikkei in an interview that the two sides were in the final stages of negotiations.

A Toshiba official added, "We had been considering outsourcing production to
Samsung and GlobalFoundries since last year."

Samsung is thought to handle the low-cost fabrication of Toshiba's mainline image-processing chips, while GlobalFoundries will get the upper hand and will push out semiconductors using the latest technologies.

GlobalFoundries already has an outsourcing deal with Renesas Electronics and hopes to expand its Japanese business by supplying chips to more companies in the region.