GlobalFoundries confidentially files paperwork for $25bn IPO – report
Plus: Toyota, Volkswagen to cut production due to component drought
GlobalFoundries is reportedly planning to debut on the stock market in early 2022, chilling rumors Intel was set to absorb the US chip manufacturer in a $30bn deal.
GlobalFoundries has submitted all the forms necessary for its initial public offering (IPO) with America's financial watchdog, the SEC, according to Reuters. The documents are currently confidential and are not expected to be revealed until around October, and the company could be valued at about $25bn.
In July, rumors circulated that Intel was in talks to acquire GlobalFoundries for $30bn, but this was denied by GlobalFoundries CEO Thomas Caulfield. Word of the company’s upcoming IPO signals that those talks with Chipzilla weren’t very successful, if they ever really did take place.
GlobalFoundries and Intel declined to comment.
The ongoing chip shortage brought on from a mixture of component hoarding, natural disasters, the effects of the COVID-19 pandemic on demand for electronics, and more, is shaking up the hardware industry. In the US, the Biden administration signed an executive order promising to analyze weaknesses in supply chains while Congress has lobbied for billions of dollars to fund hardware R&D and chip manufacturers.
- GlobalFoundries to build second chip fab next to NY HQ
- Intel: 'Another one to two years before the industry is able to completely catch up with demand'
- TSMC reveals plans for further expansion, progress on 3nm process, evolving car tech, amid solid Q1 results
- Looks like we all can't stop pouring billions of dollars into AMD, Google, Apple, Microsoft
GlobalFoundries relocated its headquarters from Santa Clara, California, to Malta, New York, to be closer to its most advanced facility, Fab 8, in April. It’s also planning to build a second fabrication plant on that campus to crank out more chips for automotive, 5G, and Internet-of-Things industries.
Also don't forget that IBM is suing GlobalFoundries for failing to produce 10nm and 7nm processors for Big Blue as promised.
Meanwhile, the chip shortage is still not letting up. Toyota said it is slashing production of its vehicles by 40 per cent next month, according to the Wall Street Journal, because it can't secure the supplies it needs. The lack of electronic components required to kit out its infotainment systems, as well as other core functions, means that an estimated 60,000 vehicles at least won’t be built.
Toyota isn’t the only automaker to be hit hard. Volkswagen also similarly said it’d have to reduce production by 40 per cent too, Reuters reports. ®