GlobalFoundries IPO Closer With Confidential Filing: Report

The semiconductor manufacturer is seeking to go public in another sign the company is not interested in being acquired by Intel.


GlobalFoundries has reportedly filed its intentions for an initial public offering, delivering more bad news for any takeover aspirations that Intel may have for the semiconductor manufacturer.

In July, the Wall Street Journal reported that Intel was looking at acquiring Malta, N.Y.-based GlobalFoundries in a move that would accelerate its plan to manufacture more chips for other companies as part of its new IDM 2.0 strategy. The Journal said the deal could value GlobalFoundries at $30 billion.

[Related: GlobalFoundries CEO Downplays Intel Takeover Report, Restates IPO Plan]

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However, GlobalFoundries CEO Tom Caulfield later told Bloomberg that in regards to the reported Intel acquisition interest, “there’s nothing there in that discussion.” He said at the time that the company would be sticking with its plan to go public next year.

Now, the GlobalFoundries IPO plans have been filed confidentially with the U.S. Securities and Exchange Commission, a Reuters report said on Wednesday. The potential IPO could value GlobalFoundries at about $25 billion, according to the report, which cited individuals familiar with the filing.

The report cited Caulfield’s previous projection that GlobalFoundries would seek to go public in 2022.

CRN has reached out to GlobalFoundries for comment.

GlobalFoundries, which spun off from AMD in 2009, is owned by Mubadala Investment Co., a fund of the government of Abu Dhabi.

The potential GlobalFoundries IPO comes as the industry-wide processor shortage continues, which makers of PCs and other devices say has been significantly hampering production and order fulfillment.

Intel has not formally made an acquisition offer for GlobalFoundries “and may not do so,” Reuters reported, citing its sources. The chip manufacturer is worried that a tie-up with Intel would be viewed negatively by customers including AMD, the report said.

Both GlobalFoundries and Intel are in the process of expanding their manufacturing footprint amid the global chip shortage.

In July, GlobalFoundries announced expansion plans for its upstate New York manufacturing facility, including a $1 billion investment to “immediately” expand production in response to the processor shortages.

Intel, meanwhile, has committed about $20 billion to invest in two new fabs in Arizona, and it has unveiled plans to invest $3.5 billion to upgrade its New Mexico manufacturing site.