MALTA, 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 position. Breen, who has been with GF since 2018, and is currently Chief Operating Officer (COO), succeeds Caulfield. In ...

Company Announcement - GlobalFoundries (GF) plans to establish a new center for advanced packaging and testing of U.S.-made essential chips at its New York manufacturing facility [1] - The center aims to enable semiconductors to be securely manufactured, processed, packaged, and tested entirely onshore in the U.S., addressing demand for silicon photonics and other essential chips in AI, automotive, aerospace, defense, and communications [1] - GF's New York Advanced Packaging and Photonics Center will expand advanced packaging capabilities, providing an end-to-end U.S.-based solution for chips made at GF's New York facility [3] Industry Trends - Growth in AI is driving adoption of silicon photonics and 3D/heterogeneously integrated (HI) chips to meet power, bandwidth, and density requirements in datacenters and edge devices [2] - Silicon photonics chips are positioned to address power and performance needs in automotive, communications, radar, and critical infrastructure applications [2] Investment and Job Creation - GF's total investment in the New York Advanced Packaging and Photonics Center is expected to be $575 million, with an additional $186 million in R&D over the next 10+ years [4] - The project is expected to create approximately 100 new full-time GF jobs in New York over the next five years [4] - New York state will provide up to $20 million in new support, in addition to the previously announced $550 million from the New York State Green CHIPS program [5] - The U.S. Department of Commerce will provide up to $75 million in direct funding, supplementing the previously announced GF award under the CHIPS and Science Act [5] GF's New York Facility - GF employs approximately 2,500 people at its Malta, New York fab and has invested over $16 billion in the facility since its opening in 2011 [6] - The New York fab has Trusted Foundry accreditation and manufactures secure chips in partnership with the U.S. government [6] Advanced Packaging Capabilities - The center will offer advanced packaging, assembly, and testing for GF's silicon photonics platform, integrating optical and electrical components on a single chip for power efficiency and performance [8] - It will provide full turnkey advanced packaging, bump, assembly, and testing for aerospace and defense customers under GF's Trusted Foundry accreditation, ensuring chips for sensitive national security systems never leave the U.S. during production [8] - New production capabilities will include advanced packaging, wafer-to-wafer bonding, assembly, and testing of 3D and HI chips using GF's 12LP+, 22FDX®, and other leading platforms [8]

MALTA, N.Y., Jan. 08, 2025 (GLOBE NEWSWIRE) -- GlobalFoundries (NASDAQ:GFS) today announced that it will host a conference call on Tuesday, February 11, 2025, at 8:30 a.m. ET following the release of the company's fourth quarter and full-year 2024 financial results. Conference Call and Webcast Information The company will host a conference call with the financial community on Tuesday, February 11, 2025, at 8:30 a.m. ET. Interested parties may join the scheduled conference call by registering here. The compa ...

ESSEX JUNCTION, Vt., Dec. 04, 2024 (GLOBE NEWSWIRE) -- GlobalFoundries (Nasdaq: GFS) (GF) has received an additional $9.5 million in federal funding from the U.S. government to advance the manufacturing of GF’s essential gallium nitride (GaN) on silicon semiconductors at its facility in Essex Junction, Vermont. The funding moves GF closer to large-scale production of GaN chips. With the ability to handle high voltages and temperatures, GaN chip technology is essential for enabling higher performance and gre ...

The beaten-down semiconductor company's earnings were better than the market feared.Shares of semiconductor foundry Globalfoundries (GFS 12.52%) rallied 12.1% on Wednesday, as of 1:32 p.m. ET.The company, a leading manufacturer of specialty semiconductors that are often made using less-advanced "trailing edge" nodes, reported its third-quarter results Tuesday evening. While Globalfoundries' overall revenue declined, it was ahead of expectations, and management's guidance was also better than expected, perha ...

GlobalFoundries 1 Third Quarter 2024 Financial Results (unaudited) November 5, 2024 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, ...

Financial Data and Key Metrics - Revenue for Q3 2024 was $1.739 billion, representing a 7% sequential growth and a 6% year-over-year decline [10][35] - Non-IFRS gross margin was 24.7%, exceeding the mid-point of the guidance range [17] - Non-IFRS diluted earnings per share were $0.41, surpassing the high end of the guidance range [17] - Year-to-date non-IFRS adjusted free cash flow was $779 million, with expectations of approximately 3x growth compared to 2023 [19] - Q4 2024 revenue guidance is between $1.8 billion and $1.85 billion, with gross profit expected to be between $432 million and $481 million [50] Business Line Performance - Smart mobile devices accounted for 50% of Q3 revenue, with a 14% sequential increase and an 11% year-over-year increase [37] - Home and industrial IoT markets represented 18% of Q3 revenue, with a 4% sequential increase but a 25% year-over-year decline [39] - Automotive segment accounted for 15% of Q3 revenue, with a 5% sequential decline and a 16% year-over-year decline, but expected to grow high-single-digits for 2024 [41] - Communications infrastructure and data center segment represented 7% of Q3 revenue, with a 14% sequential decline and a 15% year-over-year decline [42] Market Performance - Automotive remains a key growth driver, with high-single-digit revenue growth expected for 2024 despite short-term demand dynamics [23][41] - Smart mobile devices returned to year-over-year revenue growth in Q3, with demand expected to normalize in 2024 [25][38] - IoT end market saw a 4% sequential revenue growth but is down on a full-year basis due to elevated inventory levels [28] - Communications infrastructure and data center segment is expected to see growth opportunities in power, connectivity, and optical networking [43] Strategic Direction and Industry Competition - The company is focused on diversifying its product portfolio and customer base, with 90% of year-to-date design wins being sole-source opportunities [12][13] - A key design win with NXP on the 22FDX platform highlights the company's focus on power and performance solutions [14] - The company is expanding its global manufacturing footprint, particularly in Malta, New York, to support customer demand across the U.S., Europe, and Asia [15][16] - Silicon photonics and power management are identified as key growth areas, with partnerships in optical networking and power solutions [31][32] Management Commentary on Operating Environment and Future Outlook - The company expects sequential growth throughout 2024, with Q1 being the low point for revenue [10] - Management is optimistic about long-term growth opportunities, particularly in automotive and smart mobile devices, despite near-term demand challenges [23][25] - The company is well-positioned to capitalize on industry recovery, with a focus on improving factory utilization and cost recovery initiatives [64][65] Other Important Information - The company shipped approximately 549,300 millimeter equivalent wafers in Q3, up 6% sequentially but down 5% year-over-year [36] - Non-wafer revenue, including reticles and non-recurring engineering, accounted for 10% of total revenue in Q3 [36] - The company has a $1 billion revolving credit facility, which remains undrawn [49] Q&A Session Summary Question: How does the company reconcile its strong performance with the weakness of its customers? [56] - The company attributes its performance to the breadth of its end markets, particularly smart mobile devices and automotive, which are growing despite industry challenges [57][58] - For 2025, the company expects growth, with Q1 2025 projected to show year-over-year growth, albeit with high seasonal cyclicality [60][61] Question: What are the gross margin trends and expectations for 2025? [62] - Gross margin benefits from underutilization charges are expected to decrease, but overall margins are expected to improve with industry recovery and higher utilization [64][65] Question: What are the pricing trends and expectations for 2025? [67] - The company expects pricing to remain stable, with opportunities for better pricing in 2025 due to inflation and the shift away from long-term agreements [69][70] Question: What are the demand trends in the smart mobile segment? [71] - The company is seeing growth in China, particularly in 5G low and mid-tier phones, with design wins on 8SW, 9SW SOI, and RF GaN platforms [73][74] Question: What is the impact of customer underutilization payments on gross margin? [75] - The impact of underutilization payments is expected to decrease, with minimal effect on gross margin in the first half of 2025 [76][77] Question: How does the company balance geographic diversification with local production trends in China? [78] - The company sees strong demand from Chinese fabless companies for global supply, with a strategy to support both local and global needs [80][81][82] Question: What are the key design wins and their expected contributions? [85] - The company is focused on converting design wins into revenue, with a strong pipeline in automotive, IoT, and smart mobile devices [85][86] Question: What are the capital allocation plans given the strong cash flow? [107] - The company is considering various capital allocation strategies, including share repurchases, dividends, and reducing leverage, while also exploring accretive M&A opportunities [109][110][112] Question: What is the outlook for silicon photonics and compound semiconductors? [115] - Silicon photonics and SiGe are expected to be significant revenue drivers, particularly in high-performance analog applications [116][117] Question: What is the nature of the partnership with NXP and the role of LTAs? [122] - The partnership with NXP is strategic, with LTAs providing certainty in volume, pricing, and duration, particularly in long-tail markets like automotive [122][123][125] Question: How does the company reconcile its Q4 guidance with weak smartphone trends? [128] - The company expects IoT and infrastructure declines to offset growth in other segments, with strong performance in RF and design wins supporting smart mobile devices [129][130] Question: What are the gross margin expectations excluding prepayment impacts? [131] - Gross margin is expected to improve with higher factory utilization and cost recovery initiatives, supported by a favorable business mix [131]

GlobalFoundries Inc. (GFS) reported $1.74 billion in revenue for the quarter ended September 2024, representing a year-over-year decline of 6.1%. EPS of $0.41 for the same period compares to $0.55 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.73 billion, representing a surprise of +0.78%. The company delivered an EPS surprise of +24.24%, with the consensus EPS estimate being $0.33.While investors closely watch year-over-year changes in headline numbers -- revenue and earning ...

GlobalFoundries Inc. (GFS) came out with quarterly earnings of $0.41 per share, beating the Zacks Consensus Estimate of $0.33 per share. This compares to earnings of $0.55 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 24.24%. A quarter ago, it was expected that this company would post earnings of $0.29 per share when it actually produced earnings of $0.38, delivering a surprise of 31.03%.Over the last four quarters, the comp ...

Financial Performance - Net revenue for Q3 2024 was $1,739 million, a decrease of 6.1% compared to $1,852 million in Q3 2023[8] - Gross profit for Q3 2024 was $414 million, down 21.7% from $529 million in Q3 2023[8] - Operating income for Q3 2024 was $185 million, a decline of 29.1% compared to $261 million in Q3 2023[8] - Net income for Q3 2024 was $178 million, down 28.6% from $249 million in Q3 2023[8] - Basic net earnings per share for Q3 2024 were $0.32, a decrease from $0.45 in Q3 2023[8] - Total comprehensive income for Q3 2024 was $226 million, slightly up from $225 million in Q3 2023[10] - For the nine months ended September 30, 2024, net income was $467 million, a decrease of 37% compared to $740 million for the same period in 2023[17] - The effective tax rate for the three months ended September 30, 2024, was 8.7%, compared to (2.5)% in 2023, primarily due to U.S. withholding tax reclassification[41] - Basic earnings per share (EPS) for the three months ended September 30, 2024, was $0.32, down from $0.45 in 2023, reflecting a decrease of 28.9%[46] Expenses and Investments - Research and development expenses increased to $130 million in Q3 2024, up 20.4% from $108 million in Q3 2023[8] - Depreciation increased to $1,094 million in 2024 from $952 million in 2023, reflecting a rise of approximately 15%[17] - The company incurred share-based compensation of $143 million in 2024, up from $120 million in 2023, representing an increase of about 19%[17] - The company incurred restructuring charges of $1 million for the three months ended September 30, 2024, significantly lower than $17 million in the same period of 2023[50] - The company plans to continue investing in new technologies and market expansion to enhance its competitive position in the semiconductor industry[21] Assets and Liabilities - Total current assets as of September 30, 2024, were $6,598 million, an increase of 4.3% from $6,327 million as of December 31, 2023[5] - Total liabilities decreased to $6,523 million as of September 30, 2024, down 5.4% from $6,893 million as of December 31, 2023[5] - Total equity increased to $11,582 million as of September 30, 2024, up from $11,151 million as of December 31, 2023[5] - Total inventories as of September 30, 2024, increased to $1,802 million from $1,487 million as of December 31, 2023, representing a rise of 21.1%[59] - The net book value of property, plant, and equipment as of September 30, 2024, was $8,950 million, slightly down from $9,000 million as of December 31, 2023[49] - The company reported a total of 1,323 million in trade receivables as of September 30, 2024, down from $1,420 million as of December 31, 2023[54] - Work in progress inventory as of September 30, 2024, was $1,199 million, an increase from $1,005 million as of December 31, 2023[59] Cash Flow and Investments - Net cash provided by operating activities was $1,265 million, down from $1,441 million in the previous year, indicating a decline of about 12%[17] - The company reported a net cash used in investing activities of $1,033 million, compared to $1,787 million in 2023, showing a reduction of approximately 42%[17] - Cash and cash equivalents at the end of the period were $2,286 million, an increase from $1,880 million in the prior year[17] - Investments in marketable securities increased to $2,047 million as of September 30, 2024, up from $1,501 million as of December 31, 2023, reflecting a growth of approximately 36.5%[82] - The company’s total cash equivalents and investments in marketable securities combined amounted to $3,944 million as of September 30, 2024, compared to $3,398 million as of December 31, 2023, an increase of approximately 16.1%[82] Debt and Credit Facilities - Total long-term debt decreased from $2.372 billion as of December 31, 2023, to $2.313 billion as of September 30, 2024[66] - The company has unutilized credit facilities totaling $1.118 billion as of September 30, 2024, compared to $1.058 billion as of December 31, 2023[66] - Future payments under purchase agreements amounted to $591 million as of September 30, 2024, down from $1.1 billion as of December 31, 2023[72] - The company reported cash outflow for leases of $42 million for the nine months ended September 30, 2024, compared to $57 million for the same period in 2023[63] - The company has commitments of $368 million due within the next 12 months as of September 30, 2024[72] Share Repurchase and Equity - On May 22, 2024, the company announced a share repurchase of 3.9 million ordinary shares at a price of $50.75 per share, totaling $200 million[93] - The company completed the share repurchase on May 28, 2024, and subsequently canceled the 3.9 million shares[93] - The company’s investments in equity instruments increased from $19 million as of December 31, 2023, to $25 million as of September 30, 2024, marking a growth of approximately 31.6%[82] Derivatives and Fair Value - The company reported total liabilities for derivatives at $56 million as of December 31, 2023, which decreased to $42 million by September 30, 2024, indicating a reduction of approximately 25%[82] - The fair value of other long-term debt was estimated at $2,256 million as of September 30, 2024, down from $2,319 million as of December 31, 2023, a decrease of about 2.7%[88] - Derivative assets increased from $132 million as of December 31, 2023, to $166 million as of September 30, 2024, representing a rise of approximately 25.8%[82] - The company utilizes the Black-Scholes and Monte Carlo models for estimating the fair value of share-based compensation, which involves subjective assumptions and management judgment[89] Legal Matters - The trial related to IBM's claims is scheduled to commence on February 3, 2025[74]