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Amid news of the Ford partnership, GlobalFoundries has added 40 percent since going public

MALTA – GlobalFoundries’ shares are up 40 percent since the semiconductor chip maker went public late last month.

Although Wall Street was initially dis -pointed with the debut of GlobalFoundries stock (stocks fell as much as 5 percent on the day before closing 60 cents), things have only risen for the company since then.

Its shares (Nasdaq: GFS) traded above $ 65 on Friday, up more than 40 percent or nearly $ 20 since it went public, making GlobalFoundries one of the best technology stocks out there.

The surge has brought the company’s market c -italization – the value of the company’s total outstanding shares – to $ 34 billion, up from $ 25 billion when it went public.

The stock surge was fueled by the ongoing global chip scarcity, which makes chipmakers like GlobalFoundries valuable to investors who see an unlimited uptrend in chip demand.

The stock also benefited from an announcement Thursday that GlobalFoundries and Ford Motor Co. had signed a groundbreaking deal to supply Ford with chips for its cars and trucks.

The deal, which the two companies described as non-binding, is interesting in that it also includes an R&D partnership and chip design collaboration – a sign that Ford will be working extremely closely with GlobalFoundries to create bespoke chips that Ford said it sets it  -art from other automakers.

“It is critical that we create new ways to work with suppliers to give Ford – and America – greater independence in delivering the technologies and features that our customers will value most in the future,” said Jim Farley , CEO of Ford, in a statement. “This agreement is just the beginning and an important part of our plan to vertically integrate key technologies and c -abilities that will differentiate Ford far into the future.”

Automakers have been plagued by chip shortages amid supply chain problems caused by the COVID-19 pandemic and other factors. Chip companies have tried to bind themselves more closely to the auto industry. GlobalFoundries, in particular, has envisaged closer partnerships with automakers that would benefit both industries.

“Our agreement with Ford is an important step in strengthening our collaboration and partnership with automakers to drive innovation, bring new features to market faster and maintain a long-term balance between supply and demand,” said Tom Caulfield, CEO of GlobalFoundries.

GlobalFoundries will publish its results on November 30th, the first time it has held an earnings announcement with analysts after going public.

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