Malta

GlobalFoundries’ stock rises; CEO says company has sold output through 2023

The GlobalFoundries campus in Malta on Oct. 7, 2020.

The GlobalFoundries campus in Malta on Oct. 7, 2020.

MALTA — GlobalFoundries’ stock price jumped more than 10% on Monday, the third day of public trading for the Saratoga County-based computer chipmaker.

The surge came on a banner day for the major U.S. exchanges: The Dow Jones Industrial Average, NASDAQ and S&P 500 all closed at all-time record highs Monday, though only a fraction of a percentage point higher than their close Friday.

GlobalFoundries closed at $48.74 per share Friday and $53.87 on Monday, a 10.53% gain. It traded as high as $59.99 on Monday.

In an interview with CNBC published Saturday, GlobalFoundries CEO Tom Caulfield said the company has sold out its production capacity through the end of 2023.

The entire semiconductor industry is riding a surge in demand that intensified during the onset of the COVID pandemic in 2020.

Caulfield told CNBC he expects demand to exceed supply for the better part of the next decade.

GlobalFoundries, which operates at a loss, is taking steps to expand production capacity across its worldwide footprint.

In July it announced a $1 billion expansion of its existing Malta chip foundry, called Fab 8, and said it would begin planning for a second factory, Fab 8.2, to be built nearby. Whether Fab 8.2 actually is built will depend on a number of factors including availability of government subsidies.

Fab 8, which cost roughly $15 billion to construct and equip, received more than $1.3 billion in state assistance in its development phase. Nearly 3,000 people work there now.

The company moved its headquarters to Malta earlier this year.

Categories: Business, News

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