GlobalFoundries has submitted IPO related documents
GlobalFoundries announced that it has submitted relevant documents to the US Securities and Exchange Commission for its initial public offering (IPO), which means that the long-rumored GlobalFoundries listing plan has entered a new stage. As the global demand for semiconductors has reached unprecedented heights, the overall prospects of the semiconductor manufacturing industry are optimistic. The valuation of GlobalFoundries has continued to rise in the past period of time.
“Industrie: Werk GLOBALFOUNDRIES Dresden, Deutschland” by MWM Energy is licensed under CC BY-NC-ND 2.0
According to Reuters, industry insiders believe that GlobalFoundries is valued at approximately $25 billion. After GlobalFoundries announced in 2018 that it would stop developing advanced processes and focus on special processes, its revenue has declined, but with the outbreak of the coronavirus epidemic, there has been high demand, GlobalFoundries’ revenue has increased and losses have decreased, and it is now considered a good time for an IPO. At the same time, the recent losses of GlobalFoundries are due to a large amount of investment in capacity expansion, GlobalFoundries has increased the production capacity of Fab 1 in Dresden, Germany, and built a new fab in Singapore, and expanded the fab in New York, USA.
According to TrendForce’s data, GlobalFoundries is currently the world’s fourth-largest foundry, second only to TSMC, Samsung, and UMC, with more than 200 customers and five manufacturing bases in different regions of the world. Since changing its strategy in 2018, GlobalFoundries has won approximately $32 billion in orders in the following three years. If the strong demand for chips continues, it will only be a matter of time before GlobalFoundries becomes profitable.
In July of this year, there was news that Intel was seeking to acquire GlobalFoundries, and the transaction amount maybe $30 billion. However, GlobalFoundries’s attitude is not positive, because it is worried that after the merger, the original customers of the two parties may have conflicts of interest or form a competitive relationship. Even if you accept Intel’s offer, GlobalFoundries will face strict antitrust review, which may cause GlobalFoundries to miss a great opportunity for development.
