According to the CEO of Abu Dhabi sovereign wealth fund, Mubadala, who said chipmakers are poised to play a “significant” role in the global economy.
“It took 50 years for the semiconductor business to become a half-trillion dollar business. It’s probably going to take eight to 10 years to double. And it’s going to double right after that, maybe. in four to five years,” Khaldoon Al Mubarak told CNBC’s Hadley Gamble in an exclusive interview.
Mubadala is Abu Dhabi’s state investment fund and manages about $240 billion in assets. It is also a major shareholder of the chip maker GlobalFoundries, which recently raised nearly $2.6 billion in its initial public offering – one of the biggest US exchanges this year.
“So we consider it a very important data point. You combine that with another very relevant data point … yes yes [only] five foundry businesses, global foundry businesses, four of which are in Asia,” he added.
“I think, in one of them, Global Foundries has unique backgrounds that are unique in the United States, in Europe, and in Asia.”
Al Mubarak’s comment comes as demand for chips continues to outpace supply. Shortages have hampered manufacturing in a number of industries, from cars to consumer devices, personal computers and smartphones.
Some analysts and investors Supply is expected to continue at least until 2023, while Others are more optimistic.
GlobalFoundries acknowledged in its IPO filing that the semiconductor industry will require “significant increases in investment to keep up with demand,” even as the company anticipates the supply-demand imbalance could improve in the near future. Mid-term.
The company ranks third in the semiconductor fabrication market, after Taiwan Semiconductor Manufacturing (TSMC) and Korea Samsung.
Based in Taiwan United Microelectronics Corporation (UMC) and of China Semiconductor Manufacturing International Joint Stock Company (SIMC) is one of the other leading semiconductor foundries.
GlobalFoundries manufactures chips designed by its customers for use in contactless payments, battery power management touchscreen drivers, and more. It has three factories in the United States – two in New York State and one in Burlington, Vermont – as well as one in Germany and another in Singapore.
– CNBC’s Saheli Roy Choudhury & Ari Levy contributed to this report.
