Geopolitical and Market Risks - The semiconductor industry is experiencing significant geopolitical tensions, particularly between the United States and China, which could adversely affect the company's operations and market conditions [31]. - The ongoing geopolitical tensions and economic sanctions may adversely affect the company's operations and financial results [35]. - The semiconductor industry is facing challenges due to trade barriers, which may decrease growth and disrupt supply chains, particularly in Europe [38]. - The company faces significant tariffs on Chinese-origin goods, with general tariffs currently at 20% and special duties reaching up to 70% for certain products [33]. - The imposition of 25% tariffs on most Mexican and Canadian origin goods took effect on March 4, 2025, impacting the company's supply chain [34]. - Trade restrictions, particularly between the U.S. and China, may limit access to essential equipment and components [116]. Customer and Revenue Dependence - The company relies on a small number of customers for a significant portion of its revenue, making it vulnerable to revenue declines if key customers are lost [26]. - The company relies heavily on a small number of customers, with the top ten customers accounting for approximately 65% of wafer shipment volume in 2024 [50]. Operational and Financial Control Risks - The company has identified material weaknesses in its internal control over financial reporting, which may adversely affect future financial results [30]. - The company identified material weaknesses in its Internal Control over Financial Reporting (ICFR) as of December 31, 2024, which may adversely affect future financial results [200]. - There is uncertainty regarding the effectiveness of the remediation efforts for identified material weaknesses, which could impact financial reporting accuracy [202]. - The company completed remediation of the 2023 material weakness related to IT user access controls, but there is no assurance that these controls will continue to operate effectively [201]. Industry Cyclicality and Economic Conditions - The company faces risks related to the cyclical nature and seasonality of the semiconductor industry, which can lead to significant economic downturns [26]. - Economic conditions, including inflation and potential recession, could significantly impact demand for the company's products and services [39]. - Seasonal variations in market conditions contribute to fluctuations in demand and prices for semiconductor services, impacting the company's revenue [43]. - The semiconductor industry is characterized by unpredictable cycles, complicating revenue forecasting and expense management [105]. Competition and Market Position - The company is facing increased competition from other semiconductor manufacturers, which could affect its market share and profitability [26]. - Increased competition from IDMs expanding their internal capacity may negatively impact demand for foundry services [58]. - The company is focused on securing and maintaining design wins, particularly single-sourced awards, to enhance its market position [26]. - The company has shifted focus to securing single-sourced design wins amid changing demand dynamics and reduced ability to enter into long-term agreements (LTAs) [45]. Supply Chain and Capacity Management - The company is actively managing its capacity and production facilities to optimize operations and maintain competitiveness [28]. - The company must manage manufacturing capacity to meet customer demand, with risks of defaulting on obligations if capacity commitments are not met [48]. - The company is exposed to risks associated with overcapacity in the semiconductor industry, which could negatively impact revenue and profit margins [26]. - The company faces risks from potential disruptions in the silicon supply chain, which could materially impact operations and financial condition [52]. - The company has extended its supply agreement with Soitec for 300mm RF SOI and FD Products until 2026, with conditions for extension until 2030 [51]. Research and Development Investments - The company is investing in advanced technologies and research and development to maintain its competitive edge in the semiconductor market [16]. - The company must invest significantly in R&D to remain competitive, with the risk of unsuccessful efforts harming its market position [67]. - The company is investing in AI/ML technologies to enhance manufacturing efficiency, but failure to deploy these effectively could impact competitiveness [119]. Compliance and Regulatory Challenges - The company is subject to stringent export controls and compliance requirements that could impair its ability to compete internationally [32]. - Sales to government entities involve compliance challenges that could impact operations and financial results [80]. - The Department of Defense's Cyber Security Material Model Certificate (CMMC) will require compliance by 2026, potentially impacting the company's ability to bid on contracts [128]. - The company faced a civil penalty in 2024 due to inadvertent shipments that breached BIS regulations, highlighting risks associated with compliance failures [124]. - Compliance obligations may lead to lost sales opportunities and delays in business operations [168]. Environmental and Safety Regulations - Environmental, health, and safety regulations expose the company to compliance risks, which could adversely affect its operations and financial condition [158]. - The company is potentially liable for environmental contamination cleanup costs, which could result in material liabilities [161]. - Regulations related to climate change may lead to increased costs for process materials and emissions control, impacting manufacturing operations [162]. Financial and Tax Risks - The majority of the company's debt is based on floating interest rates, exposing it to risks from interest rate fluctuations [175]. - Changes in effective tax rates could adversely affect the company's financial condition and results of operations [180]. - The company is subject to a new corporate alternative minimum tax of 15% on adjusted financial statement income starting in 2024 due to the Inflation Reduction Act of 2022 [184]. - The company may face increased tax uncertainty due to differing interpretations of tax laws and increased audit scrutiny in jurisdictions like Germany, Singapore, and the U.S. [183]. Intellectual Property and Legal Risks - The company is subject to significant risks related to intellectual property disputes, which may lead to increased costs and liabilities [138]. - The semiconductor industry frequently experiences patent infringement claims, potentially impacting the company's operations and financial condition [138]. - The company may need to allocate substantial resources to monitor and protect its intellectual property rights, which could divert management's attention and incur significant costs [139]. - Agreements with customers and partners may require the company to defend against intellectual property infringement claims, potentially leading to increased operational costs and loss of revenue [141]. Strategic Collaborations and Investments - The company is engaged in a strategic collaboration with ST Microelectronics to build a new semiconductor manufacturing facility in France, targeting a production capacity of 620,000 300mm wafers per year [152]. - The collaboration with ST is dependent on meeting various milestones to secure substantial government funding, which poses risks to the project's success [153]. Human Resources and Workforce Challenges - GF faces challenges in recruiting and retaining skilled technical personnel, which is critical for maintaining competitive differentiation [79]. - The integration of AI/ML may disrupt workforce needs, leading to increased competition for skilled personnel and potential additional costs [120]. Cybersecurity and Data Privacy - Cybersecurity threats require significant investments, and breaches could adversely affect operations and financial results [108]. - Compliance with data privacy laws, such as the California Consumer Privacy Act and the EU GDPR, may incur significant costs and affect operational margins [125][126]. - Stricter enforcement of data privacy laws could limit marketing effectiveness and increase compliance costs, adversely affecting financial results [126].

Expanded collaboration includes joint research on GF’s leading semiconductor platformsCAMBRIDGE, Mass. and MALTA, N.Y., Feb. 27, 2025 (GLOBE NEWSWIRE) -- GlobalFoundries (Nasdaq: GFS) (GF) and the Massachusetts Institute of Technology (MIT) today announced a new master research agreement to jointly pursue advancements and innovations for enhancing the performance and efficiency of critical semiconductor technologies. The collaboration will be led by MIT’s Microsystems Technology Laboratories (MTL) and GF’s ...

Shares of U.S. specialty chip manufacturer GlobalFoundries (GFS -1.68%) rallied 11.4% this week, according to data from S&P Global Market Intelligence.The U.S. foundry, which produces chips on specialty lagging-edge nodes, had an earnings report that encouraged analysts. In addition, Vice President JD Vance made a speech touting domestic U.S. chip manufacturing, which lit a fire under GlobalFoundries and other U.S.-based chipmakers.GlobalFoundries beats expectations as it aims for a recoveryIn the fourth qu ...

GlobalFoundries, Inc. (NASDAQ:GFS) Q4 2024- Earnings Conference Call February 11, 2025 8:30 AM ET Company Participants Sam Franklin - VP, Business Finance & IR Thomas Caulfield - CEO John Hollister - CFO Niels Anderskouv – CBO Tim Breen - COO Conference Call Participants Chris Caso - Wolfe Research Mark Lipacis - Evercore ISI Krish Sankar - TW Cowen Ross Seymore - Deutsche Bank Harlan Sur - J.P. Morgan Vivek Arya - Bank of America Securities Quinn Bolton - Needham & Company Operator Good day, and thank you ...

GlobalFoundries Inc. (GFS) reported $1.83 billion in revenue for the quarter ended December 2024, representing a year-over-year decline of 1.3%. EPS of $0.46 for the same period compares to $0.64 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.83 billion, representing a surprise of -0.15%. The company delivered an EPS surprise of +2.22%, with the consensus EPS estimate being $0.45.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings ...

GlobalFoundries Inc. (GFS) came out with quarterly earnings of $0.46 per share, beating the Zacks Consensus Estimate of $0.45 per share. This compares to earnings of $0.64 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 2.22%. A quarter ago, it was expected that this company would post earnings of $0.33 per share when it actually produced earnings of $0.41, delivering a surprise of 24.24%.Over the last four quarters, the compa ...

Fourth Quarter and Full-Year 2024 Financial Results (unaudited) February 11, 2025 1 Disclaimer This presentation and the accompanying oral presentation include "forward-looking statements," that reflect our current expectations and views of future events. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995 and include but are not limited to, statements regarding our financial outlook, future guidance, product development, ...

GlobalFoundries Reports Fourth Quarter 2024 and Fiscal Year 2024 Financial Results Malta, New York, February 11, 2025 - GlobalFoundries Inc. (GF) (Nasdaq: GFS) today announced preliminary financial results for the fourth quarter and fiscal year ended December 31, 2024. Key Fourth Quarter Financial Highlights Key Full Year 2024 Financial Highlights "In the fourth quarter, the GF team delivered solid financial results that exceeded the Non-IFRS midpoint of the guidance ranges we provided in our November earni ...

MALTA, N.Y., Feb. 11, 2025 (GLOBE NEWSWIRE) -- GlobalFoundries Inc. (GF) (Nasdaq: GFS) today announced preliminary financial results for the fourth quarter and fiscal year ended December 31, 2024. Key Fourth Quarter Financial Highlights Revenue of $1.830 billionGross margin of 24.5% and Non-IFRS gross margin(1) of 25.4%Operating margin of (38.3)% and Non-IFRS operating margin(1) of 15.6%Net loss of $729 million and Non-IFRS net income(1) of $256 millionDiluted loss per share of $1.32 and Non-IFRS diluted ea ...

Dr. Thomas Caulfield appointed Executive Chairman, Tim Breen named CEO and Niels Anderskouv named President and COOMALTA, N.Y., Feb. 05, 2025 (GLOBE NEWSWIRE) -- GlobalFoundries (Nasdaq: GFS) (GF) today announced, following a rigorous succession planning process, its Board of Directors has appointed Dr. Thomas Caulfield as Executive Chairman and Tim Breen as Chief Executive Officer. Caulfield succeeds Ahmed Yahia who will step down from the Board and his role as Chairman after more than a decade in the posi ...