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Globalfoundries is a company headquartered in Milpitas (state) California , by mid-2015 it is the third largest contract manufacturer of semiconductor integrated circuits.
Performance indicators
2021: Among the world's largest semiconductor manufacturers by revenue
History
2022: Mass layoff of employees to save $200 million a year
On November 11, 2022, GlobalFoundries, the largest U.S. custom semiconductor maker, announced job cuts and a halt to hiring.
GlobalFoundries informed its employees of the upcoming staff reduction, without disclosing exactly when it would occur or which units would be affected. The chipmaker only said that by November 2022 he was working on initiatives to reduce his operating costs of $200 million a year. The company owns eight plants for the production of 200 mm and 300 mm silicon wafers. Capacities are located in Dresden, Singapore, New York.
A spokeswoman confirmed job cuts and a hiring freeze, but declined to elaborate on the number, saying GlobalFoundries was taking targeted action against our staff. The chipmaker had a strong third quarter and has good guidance for the fourth quarter, but with the current macroeconomic environment in mind, is looking to contain spending, the spokeswoman added.
The company, which is majority owned by the Abu Dhabi government, is among semiconductor manufacturers seeking funds from the US government under the $52 billion CHIPS Act to expand domestic chip production. By planning layoffs and imposing a hiring moratorium, GlobalFoundries is joining many of its peers in the broader tech industry.
On November 8, 2022, GlobalFoundries said third-quarter revenue jumped 22% and forecast current-quarter sales and earnings that would exceed analyst estimates. The company is trying to gain market share in outsourcing chip manufacturing and achieve sufficient scale to compete with industry leader Taiwan Semiconductor Manufacturing Co.[1]
2021: Going public on the Nasdaq
On October 28, 2021, GlobalFoundries entered the Nasdaq exchange, placing its shares there under the ticker symbol GFS. As part of the IPO, the contract chipmaker sold 55 million securities at a price of $47 apiece, which corresponds to the upper bound of the previously named range of $42-47, and was able to raise almost $2.6 billion. With such figures, the company's market capitalization exceeded $25 billion.
The GlobalFoundries listing is led by Morgan Stanley, Bank of America, JPMorgan Chase, Citigroup and Credit Suisse. Underwriters are expected to sell an additional 8.25 million ordinary shares. GlobalFoundries itself sold 33 million shares, and the largest shareholder in the face of the Abu Dhabi sovereign fund Mubadala Investment Company PJSC - 22 million units. Mubadala will have a majority stake in GlobalFoundries of 89.4%.
Funds related to BlackRock, Fidelity Management & Research Company, Koch Strategic Platforms, Columbia Management Investment Advisors and Qualcomm pledged to invest about $1.05 billion in a closed deal to buy shares of GlobalFoundries (a parallel private offering).
GlobalFoundries held an IPO a few months after rumors appeared in the press about the sale of the company to a microprocessor manufacturer. In Intel particular, the newspaper (The Wall Street Journal WSJ), citing people familiar with the situation, wrote that Intel is in talks with Mubadala Investment. Subsequently, GlobalFoundries CEO Tom Caulfield denied rumors about the sale of the company.
According to Bloomberg, the IPO of GlobalFoundries has entered the top three in the United States since the beginning of 2021. Only the Korean Internet giant ($4.55 billion) and the Chinese taxi aggregator DiDi Global ($4.44 billion) attracted more. [2]
2015: Buying IBM's semiconductor business
On July 1, 2015, it became known that the deal to transfer IBM's semiconductor business to Globalfoundries was closed. Thus, the American "blue giant" got rid of the production of processors, but at the same time will continue research and development in this market.
The fact that IBM will give up its semiconductor assets to Globalfoundries was officially announced in October 2014. Under the terms of the agreement, IBM will pay $1.5 billion to Globalfoundries, and the latter will compensate corporations for about $200 million through its own assets. Thus, the deal will cost IBM $1.3 billion. Payments will be extended for three years.
IBM got rid of processor production
The situation with the fact that IBM pays extra for the transfer of semiconductor assets is associated with the unprofitability of this business and the strengthening of cooperation with Globalfoundries, which has become an exclusive supplier of 22-, 14- 10nm processors for IBM until 2025.
Globalfoundries received more than 16 thousand IBM patents and applications, as a result of which the company became the owner of one of the world's largest intellectual property portfolios in the development and production of semiconductor chips.
In addition to patents, Globalfoundries received two chip factories located in the United States - in East Fishkeel (New York) and Essex Jankshen (Vermont). Several thousand employees of these enterprises moved to GlobalFoundries. The company not only does not intend to reduce the staff in the factories received, but is also going to increase the number of workers there.
After selling most of the semiconductor assets, IBM will focus on R&D activities for Power chips. In 2014, the company announced plans to invest about $3 billion in research and development of semiconductor products.
Chip manufacturing was a loss-making exercise for IBM. The company's annual losses in this area are estimated by analysts at $1.5 billion. The semiconductor business accounted for only 2% of the IT giant's total revenue.[3]
2009: Building a Company Based on AMD Division
GlobalFoundries was created on March 2, 2009 based on AMD's manufacturing division, then expanded by merging on January 13, 2010 with Singapore-based Chartered Semiconductor Manufacturing.
Notes
Stock price dynamics
| Ticker company on the exchange: | NDAQ:GFS |
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