The chipmaker GlobalFoundries Inc. has reportedly filed its plans for an initial public offering, delivering a blow to Intel Corp.’s hopes of acquiring the company.

Reports emerged in July that Intel was in discussions to acquire GlobalFoundries for as much as $30 billion, in order to accelerate new Chief Executive Officer Pat Gelsinger’s plans to manufacture more computer chips for other companies.

But today’s report from Reuters suggests GlobalFoundries is not interested in a sale. The chipmaker, which is owned by Abu Dhabi’s sovereign wealth fund Mubdala Investment Co., is said by sources to be working with Morgan Stanley, Bank of America Corp., JPMorgan Chase & Co., Citigroup Inc. and Credit Suisse Group AG on preparations for its IPO.

Reuters said GlobalFoundries will likely reveal its IPO filing in October before going public by the end of the year, or early next year, depending on how fast the U.S. Securities and Exchange Commission can process its application. However, the anonymous sources said the IPO plans are subject to market conditions and that the timing could still change.

GlobalFoundries is one of the world’s largest computer chipmakers. It was founded in 2008 when Intel’s rival chip maker Advanced Micro Devices Inc. spun off its chip production operations. Most of the world’s leading semiconductor suppliers, including Intel, Nvidia Corp. and Qualcomm Inc., outsource production of computer chips to third parties such as GlobalFoundries, allowing them to focus more on design rather than on running factories.

GlobalFoundries owns a number of fabs in the U.S. and has a 7% foundry market share in terms of revenue, though that is some distance behind the world’s No. 1 chip maker, Taiwan Semiconductor Manufacturing Co.

Reuters’ sources said Intel has not yet made a formal offer to buy GlobalFoundries and that it may decide not to do so. It’s believed GlobalFoundries executives are worried that selling itself to Intel would upset key customers, including AMD. Any deal with Intel would also face intense scrutiny from antitrust regulators in the U.S., which has become more hostile to transformative mergers under the administration of President Joe Biden.

GlobalFoundries is hatching its IPO plan amid the backdrop of a global semiconductor shortage linked to COVID-19 pandemic-related supply chain disruptions. A number of industries have stalled for lack of computer chips, most notably the automotive sector.

The company declined to comment on today’s report, but its CEO Tom Caulfield told Reuters in June that he was planning to go public sometime in 2022. He also announced plans to build a second chip fab near its headquarters in Malta, New York.

Photo: GlobalFoundries