Us semiconductor giant GlobalFoundries, announced on Monday that it has filed an (IPO) application for an initial public offering with the Securities and Exchange Commission (SEC) (SEC).
Grid Core, part of the Abu Dhabi government's investment arm Mubadala Investment Co., produces RF communication chips for 5G, automotive and other professional semiconductor companies. In terms of revenue, GE Core is the third largest contract manufacturer in the world. Although it was established relatively late, with the support of capital, it has become the third largest chip factory after TSMC and Samsung in only a decade.
In its early days, GE Core acquired the manufacturing business of AMD in 2009 and then merged it with Singapore chartered semiconductor manufacturing (Chartered Semiconductor). The Abu Dhabi fund plans to value the business at about $30 billion when it goes public, according to media reports in July.
The IPO application comes at a time when global chip shortages are forcing industries such as automakers and electronics to encounter supply chain bottlenecks and investors are pouring money into semiconductor manufacturers. Lattice core said that the imbalance between supply and demand of semiconductors is expected to improve in the medium term. In the semiconductor industry, industry-wide revenue is expected to double in the next eight to 10 years.
Documents show that, Morgan Standley, Bank of America, JD Morgan, CITI Bank and Credit Suisse will lead the IPO. The company plans to list on Nasdaq under the ticker symbol GFS.
In its IPO application, GE Core also disclosed its results for the first half of this year, which showed that net income in the six months ended June 30 was $3.038 billion, compared with $2.697 billion in the same period last year, an increase of nearly 13%. The net loss in the first half narrowed to $301 million from $534 million in the same period last year.
It is worth mentioning that GE Core suffered a loss of US $900m in 2013 and more than US $1.35 billion in 2016. In 2018, GE Core was forced to reduce losses by laying off staff on a large scale worldwide.
On July 16 this year, there were media reports that Intel was considering buying GE Core for $30 billion, but it was said that Intel had not made a formal offer. In August, GE Core responded that such a merger would make it difficult for the company's key customers, including Intel's competitors.
