BUZZ-GlobalFoundries IPO to offer no respite from chip crisis- GlobalData

GlobalFoundries is expected to headline an unusually crowded year-end IPO schedule

  

** GlobalFoundries' proposed IPO will have little effect on solving the semiconductor shortage, analysts at GlobalData, say

** During the COVID-19 pandemic, the broader industry that includes automakers and electronics producers has been crimped by a global shortage of chips, which has fueled manufacturing delays

** Alongside electric-vehicle maker Rivian's stock market debut, GlobalFoundries is expected to headline an unusually crowded year-end IPO schedule 

** "This IPO is essentially GlobalFoundries crying to Wall Street for help. The semiconductor manufacturer has been put in a precarious financial state, despite the rampant chip shortage, which shows no sign of abating until at least 2023," GlobalData analysts say

** "Wall Street will now need to reflect on the tough question of whether GlobalFoundries will ever see profits again."- GlobalData

** GlobalFoundries, which is owned by Abu Dhabi's sovereign wealth fund Mubadala Investment Co, revealed a jump in H1 revenue in its filing for an IPO earlier this month, while net loss in the same period narrowed 

** GlobalFoundries makes radio-frequency communications chips for 5G, automotive, and other specialized semiconductors

** Co is world's third-largest foundry by revenue behind Taiwan Semiconductor Manufacturing Co Ltd 2330.TW and Samsung Electronics Co Ltd 

** "GlobalFoundries intends to invest nearly $4.5bn over the next two years to expand capacity, but this is chicken feed compared to what is needed to make any difference to global chip supplies." - GlobalData

** Co plans to list on the Nasdaq under the symbol "GFS"

(Reporting by Noor Zainab Hussain in Bengaluru) ((noor.hussain@thomsonreuters.com; Within U.S. +1 646 223 8780; Outside U.S. +91 80 6182 2663 or +91 80 3796 2663 ;))


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