Mubadala riding ‘tailwinds’ lifting technology, mobility and life sciences sectors

The successful IPO of chip maker GlobalFoundries reflects Mubadala Investment Company’s strategy to shift investments into future industries such as technology, life sciences, mobility and renewable energies, the CEO said.

The semiconductor manufacturer, headquartered in Malta, New York, will grow significantly in the coming years in line with the emerging industries and the increasing demand for chips, said Khaldoon Al Mubarak, CEO and Managing Director of Mubadala, in an exclusive interview with The national in New York on the day GlobalFoundries shares debuted.

The world’s third largest semiconductor maker raised $ 2.6 billion in its initial public offering in the US last week and is in a strong strategic position to keep its network around the world in line with emerging industries and growing demand for chips benefit, said Al Mubarak.

Listing the stock is part of Abu Dhabi’s strategy to focus on sectors that “drive tomorrow’s trends”.

Mubadala is the majority shareholder of GlobalFoundries.

“We invest a lot of time and capital in these areas. We see these areas with a lot of tailwind … Mubadala is well positioned to capitalize on these industries and move away from those with headwinds, ”said Al Mubarak.

“We are proud of what GlobalFoundries has achieved. Now it is very well positioned and has a diversified platform with assets spread out [the] USA, Germany and Singapore which gives it a unique advantage, ”he added. “Results speak for themselves, the assessment we do [GlobalFoundries] have achieved is very good. The company’s capabilities and operational performance were very strong. “

GlobalFoundries’ initial public offering gave the company a market value of nearly $ 26 billion. The company’s listing is the third largest in the U.S. this year after South Korean e-commerce company Coupang, which sold $ 4.5 billion.

“The IPO is a significant milestone … an important step for GlobalFoundries, for Mubadala as a shareholder and for Abu Dhabi as a shareholder in Mubadala,” said Al Mubarak.

“This is achieved after 12-14 years of experience investing in innovation, believing in a technology and going through the ups and downs, but remained true to the conviction in the industry with a strong view of where the world is going … The last 12 Years are a clear indication of how Mubadala can implement a strategy and successfully support it with continuous investments. “

Mubadala founded GlobalFoundries in March 2009 after purchasing the chip manufacturing division of Advanced Micro Devices, which was then merged with Singapore’s Chartered Semiconductor. Since then, GlobalFoundries has posted more than $ 23 billion in investment that has helped the company establish a global manufacturing presence with multiple locations on three continents.

GlobalFoundries went public at a time when companies around the world are grappling with a shortage of semiconductors – a key ingredient in products from smartphones to cars.

According to VLSI Research, the semiconductor industry is expected to grow to more than $ 1 trillion by 2030, from about $ 500 billion this year.

The growth is being driven by smartphones, notebooks, the widespread adoption of 5G, servers, the automotive industry, smart homes, games, wearables and Wi-Fi access points with increased storage prices.

“GlobalFoundries semiconductors are critical to many of the technologies we rely on every day … the chips in cell phones, the smart devices in homes, and the security features in cars,” said Al Mubarak.

“I can say we are in the right place in this business … GlobalFoundries is a positive dynamic company, a well-run business and the growing demand for semiconductors will continue to drive and fuel growth.”

GlobalFoundries, which plans to increase its production capacity by almost 50 percent over the next three years to address the global chip shortage caused by Covid, sold nearly 55 million common shares when it went public – that’s about 10 percent of its share capital.

“The IPO positions the company very well for future growth and further expansion and for us as the majority shareholder this is a big step,” said Al Mubarak.

“We are a dedicated investor in GlobalFoundries … we’ve done the heavy lifting over the years to get the company to where it is today. Still, I am now looking forward to another 10 years of operation … we are very excited about the future, ”he added.

Mr. Al Mubarak said the fund expects to be a long-term shareholder in GlobalFoundries for the foreseeable future.

“Our goal is to increase our market share, improve our technology, and continue to serve our customers in the most effective way possible. We aim to position it as a global organization with an efficient and cost effective supply chain to serve all of our global customers. “

The 2009 acquisition of Chartered Semiconductor – the then third largest foundry by revenue – by GlobalFoundries helped the company establish its manufacturing base in Asia.

In October 2014, the company acquired the microelectronics division of International Business Machines, with manufacturing facilities in New York and Vermont, to strengthen its global presence.

The company currently employs more than 15,000 people worldwide and serves more than 200 customers worldwide, including the US government.

Updated: October 31, 2021, 4:30 a.m.