-Semiconductor giant GlobalFoundries, a unit of Abu Dhabi’s state-owned fund Mubadala, revealed a significantly smaller loss and a jump in revenue in its filing for a U.S. IPO, taking a step towards one of the most hotly awaited listings this year.
GlobalFoundries has not yet set terms for its listing, but it could seek a valuation as high as $25 billion, Reuters reported earlier in August.
The company’s net revenue for the six months ended June 30 was $3.04 billion, up nearly 13% from a year earlier. Net loss in the same period narrowed to $301 million from $534 million a year earlier. (https://bit.ly/2YgEJuh)
U.S.-based GlobalFoundries’ listing plan comes as the broader industry that includes automakers and electronics producers has been crimped by a global shortage of chips, which has fuelled manufacturing delays.
The chip maker was created when Mubadala bought Advanced Micro Devices Inc’s manufacturing facilities in 2009, and later merged it with Singapore’s Chartered Semiconductor Manufacturing Ltd.
GlobalFoundries was initially targeting a listing in late 2022 or early 2023.
The company, which makes radio-frequency communications chips for 5G, automotive, and other specialized semiconductors, counts Advanced Micro Devices and Broadcom Inc among its customers.
The Wall Street Journal reported in July that Intel Corp was weighing a buyout of GlobalFoundries, but it had reportedly stopped short of making a formal offer.
GlobalFoundries was concerned such a tie-up would upset some of its key customers that are Intel’s rivals, Reuters reported in August.
GlobalFoundries is the world’s third-largest foundry by revenue behind Taiwan Semiconductor Manufacturing Co Ltd and Samsung Electronics Co Ltd, but ranks second when factoring out Samsung’s foundry business that makes chips for other elements of the South Korean firm.
GlobalFoundries, which has invested about has about $23 billion in the company since its founding in 2009, has about 10,000 patents, its filing showed.
Morgan Stanley, BofA Securities, J.P. Morgan, Citigroup and Credit Suisse are the lead underwriters for the IPO, and GlobalFoundries expects to list on the Nasdaq under the symbol “GFS“.