Intel entered talks to acquire semiconductor company GlobalFoundries in a deal which could be valued at $30 billion, as part of an ongoing push to boost its chip manufacturing activities in the US and abroad, The Wall Street Journal (WSJ) reported.

The newspaper wrote Intel is exploring the move, although talks are not at an advanced stage and GlobalFoundries could still proceed with a planned IPO. The company is owned by Mubadala Investment, an arm of the Abu Dhabi government which is based in the US.

For Intel, striking a deal for GlobalFoundries would go some way towards fulfilling a long-term ambition to boost chip manufacturing for other companies, during a global semiconductor shortage which impacted production of a range of products from smartphones to cars.

In March, Intel CEO Pat Gelsinger said the company would up its chip activities, with the company also pledging $20 billion to expand manufacturing in the US.

GlobalFoundries itself is a major chip production company, created in 2008 when Advanced Micro Devices (AMD) spun off its production operations. The company is expanding its operations to tap into the global semiconductor shortage, investing $4 billion in Singapore earlier this year.

A $30 billion deal for GlobalFoundries would be Intel’s biggest to date, trumping the $15.4 billion acquisition of Altera in 2015.

It would also add to a string of recent tie-ups in the semiconductor space, including Nvidia’s proposed $40 billion buy of Arm.