GlobalFoundries CEO Says Chipmaker Sticking to 2022 IPO Plan

GlobalFoundries Inc., a chipmaker owned by an investment arm of the Abu Dhabi government, is sticking with its plan for an initial public offering next year, according to Chief Executive Officer Tom Caulfield.

Reports that GlobalFoundries is the subject of a takeover bid by Intel Corp. are speculation, he said.

“There’s nothing there in that discussion,” Caulfield said Monday in an interview with Bloomberg Television. Because the chipmaker is moving toward a share sale, “you can expect a lot of speculation to take place,” he said.

GlobalFoundries CEO Says Chipmaker Sticking to 2022 IPO Plan

Intel has studied the feasibility of buying U.S.-based GlobalFoundries, people familiar with the matter said last week, asking not to be identified because deliberations are private. But no formal takeover approach has been made to GlobalFoundries owner Mubadala Investment Co. and the two sides are not engaged in active talks, the people said.

Mubadala created GlobalFoundries by purchasing the manufacturing operations of Advanced Micro Devices Inc. in 2009 and later combining it with Singapore’s Chartered Semiconductor. The fund continues to work with advisers on plans to list the business at a value of around $30 billion, the people said.

“I think they are interested in holding onto GF,” Caulfield said. “They think this asset has become a star in their portfolio.”

Last week a spokesperson for Malta, New York-based GlobalFoundries said there are no talks with Intel. Representatives for Intel and Mubadala declined to comment following a report by the Wall Street Journal that the world’s largest chipmaker was planning a bid.

Contract chipmakers like GlobalFoundries fabricate semiconductors for large technology companies such as Apple Inc., Nvidia Corp. and Inc. Intel, under Chief Executive Office Pat Gelsinger, has stated its ambition to spend heavily to get into that market and challenge Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co., two companies that have taken the U.S. company’s manufacturing lead.

©2021 Bloomberg L.P.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.