GlobalFoundries today confidentially filed for an initial public offering (IPO) in New York, Reuters reports. The IPO, which could garner around $25 billion, scuttled a rumored acquisition attempt by rival foundry operator Intel.

Citing people familiar with the matter, Reuters reports the IPO is expected to be revealed in October and the company plans to go public by the end of the year or in early 2022. However, the news shouldn’t come as a complete surprise. In a July interview with Reuters, GlobalFoundries CEO Tom Caulfield said the chipmaker was planning an IPO for 2022.

The foundry operator is working with Morgan Stanley, Bank of America, JPMorgan Chase, Citigroup, and Credit Suisse on IPO preparations, Reuters reports.

“I’m not at all surprised that GlobalFoundries may be pursuing an IPO,” said Glenn O’Donnell, VP and research director of infrastructure and operations at Forrester Research, in response to questions.

Even talk of an IPO can boost the valuation. “It’s a gamble, but one worth taking,” he explained. “The consensus on an acquisition valuation is about $30 billion, but if GlobalFoundries can command $35 billion or more, that’s a big win.”

What's more, rumors of an acquisition by Intel or anyone else is likely to fan the valuation flames, O’Donnell added.

Still, GlobalFoundries’ plans could change as market conditions evolve. The global semiconductor market has been in flux over the past year with foundry operators scrambling to expand capacity in the wake of a tsunami of pent-up demand.

Intel, Taiwan Semiconductor Manufacturing Co. (TSMC), Samsung Electronics, and GlobalFoundries have all announced plans to expand foundry operations to meet growing customer demand. Intel announced $20 billion for two chips fabs in Arizona in March, with additional investments expected before the end of the year.

Meanwhile, TSMC, the world’s largest semiconductor manufacturer, announced more than $100 billion in capex spending over the next three years to expand its fabrication capacities.

Not to be left out, GlobalFoundries last month announced a $1 billion bid to boost capacity at its Malta, New York fab, announced last year.

Today’s news comes just weeks after the Wall Street Journal reported Intel could pay as much as $30 billion for GlobalFoundries.

While Intel has bolstered its production and announced new fabs, those facilities take time to build.

“A new fab takes at least two years to build,” O’Donnell said in an earlier interview. “Buying GlobalFoundries would give Intel the capacity it needs quickly. In that sense, it’s a good move.”

However, the fact GlobalFoundries hasn’t competed in leading-edge silicon since 2019, a fact that led AMD to shift production to TSMC, cast doubt on the efficacy of the rumors.

“The real battlefield for Intel is the advanced stuff: 7 nanometers and less,” O’Donnell said. “GlobalFoundries has a range of node capabilities that could over time drift more to the advanced business.”

But he warned that those modernization efforts could squeeze out smaller customers, “which would be devastating to the industry.”

Smaller customers, including automakers, have borne the brunt of the global semiconductor shortage.

But while GlobalFoundries might not be able to compete with competitors like TSMC or Intel on leading-edge silicon, O’Donnell argues the foundry operator doesn’t need to.

“Chipmakers — even AMD — has products that don’t need the most advanced processing. The semiconductor market has room for chips of all types and process technologies. It’s not all about EPYC or Xeon processors,” he said.

Editor’s note: This story has been updated with additional analyst commentary.