GlobalFoundries, MIPS, and the Chiplet Race for AI Datacenters

Key Takeaways

  • GlobalFoundries' acquisition of MIPS in 2025 positions it strategically in the AI, HPC, and datacenter sectors, securing CPU IP essential for modular compute.
  • The shift to chiplet architectures in datacenters is driven by the limitations of monolithic scaling, with major companies like AMD, Intel, and Nvidia already adopting chiplet designs.
  • Advanced packaging has become a critical bottleneck in AI chip supply, with GF needing to build in-house capabilities or establish deeper partnerships with OSATs to compete effectively.

GlobalFoundries’ (GF) acquisition of MIPS in 2025 wasn’t a nostalgic move to revive a legacy CPU brand. It was a calculated step into one of the most lucrative frontiers in semiconductors: AI, high-performance computing (HPC), and datacenters. As Nvidia, AMD, Intel, and hyperscalers embrace chiplet architectures, GF is betting that owning CPU IP will secure it a central role in the modular compute era.

Chiplets Reshape the Datacenter

The shift to chiplets in datacenters is now undeniable. AI training and inference workloads have pushed beyond the limits of monolithic scaling. Traditional GPUs and accelerators face reticle-size ceilings, yield problems, and soaring power and cooling demands. Chiplets solve these constraints by breaking compute into smaller dies—CPUs, GPUs, accelerators, memory, and I/O—then stitching them together with advanced interconnects.

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