On April 9, according to people familiar with the matter, Mubadala, Abu Dhabi's sovereign wealth fund, announced that it had started preparations for global foundries, its chipmaker, to conduct an initial public offering (IPO) in the United States.
People familiar with the matter said that mobadara investment company has been holding preliminary discussions with potential consultants on the listing of Gexin, which is valued at about $20bn and has not yet selected an underwriter. At present, the listing discussion is still at an early stage, and the details of potential transactions may change.
The shortage of semiconductor microchips is having a serious impact all over the world, leading to the reduction of production and idle plant of automobile manufacturers, and affecting the operation of many large consumer electronics manufacturers. The lack of cores highlights the role of a few generations of factories, and companies such as Gexin are investing billions of dollars in new production lines and upgrading equipment to help meet surging demand and ease supply shortages.
In 2009, mubadara acquired AMD's manufacturing facilities and later merged them with Singapore's licensed semiconductor manufacturing company to form Gexin. Today, Gexin is one of the largest OEM chip manufacturers in the world.
Gexin is headquartered in the United States, but has factories in Germany and Singapore. It manufactures semiconductors for AMD, Qualcomm and Broadcom, and competes with TSMC, the market leader. However, Gexin's market share in the field of chip OEM is only 7%, far behind TSMC (54%).
Chip design and manufacturing giant Intel recently announced that it plans to enter the field of chip foundry, and plans to invest $20 billion to build factories to manufacture chips for other companies. Mr. Caulfield said he welcomed Intel's transformation, but did not see it as a new competitor to Gexin. The key difference between the two companies is that Intel is better at making cutting-edge chips.