The sun is shining again for the world’s third-largest semiconductor foundry. After reporting a 17% drop in revenue last year, GlobalFoundries (which is 100% owned by UAE’s investment fund Mubadala) posted a 13% jump in revenue in the first half of 2021. The comeback has convinced Mubadala that it is time to float GlobalFoundries’ shares on the market — and, according to Reuters, it’s seeking a valuation of $25b.
While there is still no exact confirmation on how much the company is planning to raise, Mubadala will certainly hold onto the majority of GlobalFoundries. The decision to IPO comes after the company promised to invest $1.4b in chip factories in 2021.
why it matters
The need for a greater supply of chips is not only pushing companies like GlobalFundries to seek fresh liquidity to expand operations but is also attracting other chip manufacturers like Intel to enter the market as foundries for other companies.