The US chip contract manufacturer Globalfoundries (GF) has completed its IPO. The company is currently worth a good 30 billion US dollars, the equivalent of almost 26 billion euros. While Globalfoundries offered its own shares for $ 47, a security now costs around $ 57. The original valuation was around 26 billion euros.
Globalfoundries itself has, according to the announcement Sold 30.25 million shares worth a total of 1.42 billion US dollars, which the company plans to invest in expanding its own semiconductor manufacturing facilities. Compared to its biggest competitors TSMC and Samsung, this is a small amount, but its own budget is increased significantly: So far, Globalfoundries has planned investments of around 4 billion US dollars in its own plants.
The previously sole investor, Mubadala, of the government of the Emirate of Abu Dhabi ultimately sold 24.75 million shares, but did not invest the resulting almost 1.2 billion US dollars in global foundries. Almost nine tenths of the company’s shares stay with Mubadala.
Stock market valuation before UMC
In the race for third place among the world’s largest chip contract manufacturers, Globalfoundries is competing with the Taiwanese United Microelectronics Corporation (UMC): In 2020, GF had sales of around 5.7 billion US dollars, UMC the equivalent of 6.3 billion US dollars. However, while UMC achieved a profit of well over a billion US dollars, Globalfoundries made a seven-digit minus.
Still will Globalfoundries on the stock exchange with $ 30 billion rated higher than UMC with $ 26.3 billion. The Chinese Semiconductor Manufacturing International Corporation (SMIC) is ahead of it with almost 34 billion US dollars, but is only traded on the Hong Kong stock exchange. Annual sales in 2020 were $ 3.9 billion.
Globalfoundries, UMC and SMIC all offer 14 nanometer technology as state-of-the-art manufacturing processes – SMIC, however, only in a comparatively small capacity, for example for Huawei’s smartphone processor Kirin 710A. Although SMIC wants to develop finer processes, it has to do so largely on its own due to trade restrictions. For example, the supplier ASML is not allowed to sell exposure systems with extreme ultraviolet (EUV) wavelengths to Chinese companies. Globalfoundries and UMC, on the other hand, voluntarily focus on older, more cost-efficient process technology.
Industry leader remains TSMC with a market cap of $ 592 billion – in the meantime it was already more than 600 billion. The value of Samsung and Intel’s chip contract manufacturing divisions cannot be precisely quantified because they are integrated into the parent companies.