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.
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.
Earlier this year, GlobalFoundries announced a considerable expansion plan. First, the company said it will install additional equipment to increase the production capacity of its Fab 1 in Dresden, Germany. Then, the chip contract manufacturer began to build a new fab in Singapore. Finally, the company said it will build a new fab in New York to expand its advanced production capacity.
GlobalFoundries is currently the fourth largest foundry in the world, second only to Taiwan Semiconductor Manufacturing Co and UMC and South Korea’s Samsung foundry. Trend forceThe company serves more than 200 customers and has five manufacturing bases on different continents.
Since the company no longer competes with TSMC and Samsung foundries in the cutting-edge manufacturing market, it no longer needs to invest billions of dollars to develop new nodes or purchase the latest equipment. Since the company refocused on professional manufacturing processes in 2018, it has signed multiple new contracts with multiple manufacturers, and estimates that the total design value it won in three years has reached approximately 32 billion U.S. dollars. For this reason, GlobalFoundries is likely to become a profitable chip manufacturer in the future, especially if strong demand for chips continues to exist.
Mubadala Investment Co. is a state-owned investment company from Abu Dhabi that owns GlobalFoundries. It has not disclosed all the listing terms and has not determined the percentage of GlobalFoundries shares it actually wants to sell. At the same time, the registration statement submitted to the US Securities and Exchange Commission indicated that the owners prefer IPOs to the sale of GlobalFoundries to new owners such as Intel, which may indicate that Mubadala is optimistic about the future market value of GF.
The company wrote in a statement: “The number of common shares to be issued and the price range for the proposed issuance have not yet been determined.”