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GlobalFoundries increases revenue and narrows losses as it prepares for IPO

GlobalFoundries formally Announce it has Submitted a registration statement Reached an agreement with the US Securities and Exchange Commission on its proposed initial public offering (IPO) of common stock.According to reports, the company has not disclosed all the details of its upcoming initial public offering, but market observers believe its valuation is approximately US$25 billion. Reuters.

As the demand for chips is higher than ever before, GlobalFoundries’ IPO is well timed, which allows the company to report an increase in revenue in the first half of 2021, while at the same time a reduction in losses. After the company stopped developing leading process technology in 2018 and decided to focus on specialized nodes, its revenue declined. However, the shortage of chips caused GlobalFoundries to raise prices and increase revenue before the IPO.

As early as 2018, the company’s record revenue was US$6.196 billion and a loss of US$2.626 billion. The company narrowed its loss to US$1.351 billion in 2020, but its revenue fell to US$4.851 billion. In the first half of this year, GlobalFoundries earned US$3.038 billion and lost US$301 million. This is higher than the US$2.697 billion in the first half of 2020 and lower than the US$534 million in the first half of 2020.

(Image source: Future)

It should be noted that the company’s losses in recent years are mainly due to the large investment in manufacturing capacity and the subsequent depreciation of these fabs.

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