GlobalFoundries is the third largest semiconductor findry in the world. The Abu-Dhabi-owned firm plans to go public with an IPO.

The following is a description of the product: prospectusGlobalFoundries, which filed the paperwork with the SEC Monday, stated that Mubadala is a United Arab Emirates government investment fund and will list its shares to the Nasdaq. It also said it would “continue having substantial control” after the offering. Mubadala owns 100 percent of the company.

GlobalFoundries comes in third place on the market for semiconductor fabrication after Taiwan Semiconductor Manufacturing. SamsungThe following is a list of. The company has three U.S. plants — two in New York State and one in Burlington, Vermont — as well as a plant in Germany and another in Singapore. East Fishkill was one of the New York-based sites. purchasedBy ON SemiconductorIn 2019, and will be removed from GlobalFoundries’ books in 2019.

In April, GlobalFoundries movedIts headquarters moved from Santa Clara in California to Malta, New York. This is where it has its most modern facility. Tom Caulfield is a New Yorker and CEO. told CNBCThe company announced that it will invest $1.4 Billion in chips factories by 2021, and that its next investment plan is to double that amount.

In 2008, a Mubadala Division was purchased. AMD’sGlobalFoundries includes chipmakers for manufacturing in Dresden (Germany). Qualcomm BroadcomIt counts AMD and Samsung among its top customers. The top 10 clients account for nearly three quarters of the company’s revenue.

GlobalFoundries makes chips for contactless payments and battery power management touch drivers. Intel announced in March that it plans to compete in the market and become a foundry for other companies, expecting to invest $20 billion in U.S. plants.

Due to the Covid-19 epidemic last year and the subsequent surge in electronics demand, the supply of electronic goods like computers, monitors, and games consoles was cut. To add to the pressure on supply chains, electric vehicles are being increasingly popular.

GlobalFoundries’ prospectus stated that although the imbalance in supply and demand is likely to decrease over the medium-term the industry of semiconductors will need significant investment in order to meet its demands. The industry’s total revenue should double within the next 8 to 10 years.

GlobalFoundries’ revenue dropped by 17% last year to $4.85billion. However, the company identified two major reasons. GlobalFoundries sold a business that had brought in $391million in 2019. The company also changed the terms of contracts with its most customers to change how it recognises revenue.

Revenue grew 13% to $3 billion in the first half 2021, compared with just $13 million a year ago.

Operating foundries can be a very low-margin industry. There are high expenses associated with running plants, purchasing equipment, and labor. GlobalFoundries’ gross margin (or the amount of revenue after accounting for cost of goods sold) of nearly 11% in the first half this year was a significant improvement from the negative margin last year. The net loss in six months was $301 million, down from $534 millions.

GlobalFoundries is headquartered in the U.S. but it’s still considered a foreign issuer because it was established in Cayman by Mubadala. The company can therefore be exempted from some Nasdaq rules applicable to U.S. corporations, including having its majority of board seats held by independent directors and seeking shareholder consent for certain equity compensation agreements.

GlobalFoundries isn’t revealing how much or who will be controlling GlobalFoundries after it raises the money. Investors will need to accept the possibility of being part of an Abu Dhabi-controlled company, regardless what their ownership levels.

GlobalFoundries stated in its prospectus that Mubadala would continue to hold substantial control. This could restrict your ability to affect key transactions including changes of control and other effects on the market price for our ordinary shares.

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