GLOBALFOUNDRIES (GFS) Company Report

GlobalFoundries (GFS) is positioning itself as an essential enabler of the Physical AI transition, leveraging its portfolio including MIPS, FDX, and advanced packaging.
The company identifies a significant and expanded market opportunity for Physical AI across the Transportation, Consumer, Industrial, and Medical sectors.
GFS reported strong design win growth, with approximately 400 design wins in 2025 YTD, nearly tripling from ~150 in 2023.
Approximately 95% of the 2025 YTD design wins were sole-sourced, indicating robust customer engagement with leading industry players.

3 days ago

Presentation

GlobalFoundries Details Strategy and Market Opportunity in Physical AI

GFS

New Projects/Investments

Revenue Acceleration/Inflection

Guidance Update

GlobalFoundries (GF) is strategically focusing on the "physical AI" market, leveraging its MIPS and ultra-low-power solutions to enable smart, autonomous, and connected devices.
The company estimates the Serviceable Addressable Market (SAM) for physical AI to be $18 billion by 2030, which is considered a lower-bound forecast.
GF reported strong design win momentum, nearly tripling the number of design wins in the first three quarters of 2025 compared to two years ago, with approximately 95% secured on a sole-sourced basis.
MIPS, a GlobalFoundries company, is expanding GF's customer base and is projected to add $60 million to $100 million in revenue in 2026.
GF expects physical AI to drive its Compound Annual Growth Rate (CAGR) to at or above 10% once these solutions begin to ramp.

3 days ago

Transcript

GlobalFoundries Projects $18 Billion Physical AI Market by 2030

GFS

New Projects/Investments

Revenue Acceleration/Inflection

Guidance Update

GlobalFoundries (GFS) is positioning itself at the forefront of physical AI, a transformative shift enabling billions of devices to sense, think, act, and communicate in real time, moving AI beyond the digital realm.
The company projects its serviceable addressable market (SAM) for physical AI to reach $18 billion by 2030, expecting this segment to drive a CAGR of 10% or higher for GFS.
GFS has seen strong momentum, nearly tripling its design wins in the first three quarters of 2025 compared to two years ago, with 95% secured on a sole-sourced basis. These wins are anticipated to impact revenue starting in the 2027 timeframe.
The integration of MIPS is crucial, providing a world-class processor IP portfolio for real-time AI and is expected to contribute an additional $60-$100 million in revenue in 2026 to GF's foundry business.

3 days ago

Transcript

GlobalFoundries Outlines Physical AI Market and Growth Prospects

GFS

New Projects/Investments

Revenue Acceleration/Inflection

GlobalFoundries (GF) is focusing on the emerging "Physical AI" market, which involves AI moving into the physical world to enable devices to sense, think, act, and communicate in real-time.
GF estimates its Serviceable Addressable Market (SAM) for Physical AI to reach $18 billion by 2030, viewing this as a conservative forecast with potential for higher growth.
The company's strategy for Physical AI leverages its ultra-low-power CMOS and MIPS product lines, with MIPS expected to contribute an additional $60 million to $100 million in revenue in 2026.
GF anticipates that the Physical AI market will drive its CAGR rate to be at or above 10% once these solutions ramp.
Customer engagement has significantly increased, with GF nearly tripling its design wins in the first three quarters of 2025 compared to two years prior, and 95% of these wins were sole-sourced.

3 days ago

Transcript

GlobalFoundries Discusses Demand, Geopolitical Tailwinds, and Financial Outlook at UBS Conference

GFS

Revenue Acceleration/Inflection

Guidance Update

New Projects/Investments

GlobalFoundries (GFS) observes an improved overall market demand in 2025, with data centers remaining strong and the auto segment showing double-digit growth despite a flat market.
The company is significantly benefiting from geopolitical tailwinds, as customers increasingly prioritize non-China, non-Taiwan, and U.S. sourcing, which is expected to drive meaningful share gains over the next 5-10 years.
The Comms, Infrastructure, and Data Center (CID) segment, though 10% of revenue, is growing over 30% year-over-year, with Silicon Photonics revenue tracking to $200 million in 2025 and projected to reach $1 billion by 2030.
Non-wafer revenue is strategically expanding, anticipated to reach 13% of total revenue in Q4 2025, with the MIPS acquisition expected to contribute up to $100 million in 2026, offering accretive margins.
GFS projects Q4 2025 gross margin to be between 28.5% and 29.5%, with a long-term goal of 40%. The company generated over $1 billion in free cash flow in 2024 and expects similar in 2025, leading to considerations for capital returns such as buybacks or dividends.

4 days ago

Transcript

GlobalFoundries Discusses Demand Environment, Strategic Growth Drivers, and Capital Returns at UBS Conference

GFS

Revenue Acceleration/Inflection

New Projects/Investments

Share Buyback

GlobalFoundries (GFS) anticipates improved market demand in 2025, with its auto business projected to approach $1.5 billion this year and the Comms, Infrastructure, and Data Center (CID) segment, representing 10% of revenue, growing over 30% year over year. A key driver within CID is Silicon Photonics, tracking to $200 million this year and expected to reach $1 billion by 2030.
The company is benefiting from geopolitical tailwinds, as customers increasingly prioritize non-China, non-Taiwan, or U.S. sourcing strategies, which is expected to drive meaningful share gains over the next 5 to 10 years. Sole-source design wins, comprising 90% of recent wins, are anticipated to contribute to higher Average Selling Prices (ASPs) and accretive margins as they ramp into revenue.
GFS reported positive momentum in gross margin, with Q3 margin increasing 80 basis points quarter-over-quarter and 1.3 points year-over-year. The company's Q4 gross margin guidance is between 28.5% and 29.5%, with a long-term goal of 40%.
Non-wafer revenue, which includes IP and engineering services, is growing and expected to be closer to 13% of revenue in Q4, up from 12% in Q3, contributing accretive margins. The recent MIPS acquisition, while immaterial in H2 2025, is projected to add upwards of $100 million in non-wafer revenue next year.
GlobalFoundries' free cash flow grew from over $300 million in 2023 to over $1 billion in 2024, with a similar target for 2025, leading the company to consider shareholder capital allocation options such as repo buybacks or a standard dividend program.

4 days ago

Transcript

GlobalFoundries Acquires Advanced Micro Foundry

GFS

M&A

New Projects/Investments

GlobalFoundries (GFS) acquired Advanced Micro Foundry (AMF), a Singapore-based silicon photonics foundry, on November 17, 2025.
This acquisition is a pivotal step to advance GF's innovation and leadership in silicon photonics, expanding its technology portfolio, production capacity, and research and development in Singapore.
The acquisition positions GF as the largest silicon photonics pure-play foundry by revenue and will address demands in long-haul optical communications, computing, LiDAR, and sensing.
GF plans to establish a silicon photonics research and development center of excellence (CoE) in Singapore to partner with A*STAR and focus on next-generation materials for ultra-fast data transfer at 400Gbps speed.

Nov 18, 2025, 1:30 AM

Press Release

GLOBALFOUNDRIES Inc. Reports Q3 2025 Financial Results and Completes Acquisition

GFS

Earnings

M&A

For the third quarter ended September 30, 2025, GLOBALFOUNDRIES Inc. reported net revenue of $1,688 million, a 2.9% decrease compared to Q3 2024, while net income increased to $249 million (diluted EPS of $0.44) from $178 million (diluted EPS of $0.32) in Q3 2024.
For the nine months ended September 30, 2025, net revenue increased 0.8% to $4,961 million, and net income was $688 million (diluted EPS of $1.23).
The company completed the acquisition of MIPS Holdings Inc. on August 13, 2025, for a total purchase consideration of $226 million, aiming to expand its intellectual property offerings.
As of September 30, 2025, GLOBALFOUNDRIES Inc. maintained strong liquidity with approximately $4.2 billion in cash, cash equivalents, and marketable securities, and an undrawn revolving credit facility of $1.0 billion. The company also reduced its total debt to $1,171 million by prepaying $664 million of its Term Loan A on January 2, 2025.

Nov 12, 2025, 2:45 PM

6-K

GlobalFoundries Reports Q3 2025 Results and Provides Q4 2025 Guidance

GFS

Earnings

Guidance Update

New Projects/Investments

GlobalFoundries reported Q3 2025 revenue of $1.688 billion, a 3% decrease year-over-year, and diluted earnings per share of $0.41. For Q4 2025, the company expects revenue of $1.8 billion (plus or minus $25 million) and diluted EPS of $0.47 (plus or minus $0.05).
The company saw strong double-digit year-over-year revenue growth in its automotive and communications, infrastructure, and data center end markets, which comprised 28% of total Q3 revenue. Automotive revenue is projected to approach $1.5 billion in 2025.
GlobalFoundries is making significant investments, including $16 billion to expand US manufacturing and advanced packaging capabilities, and an additional EUR 1.1 billion in its Dresden fab to increase production capacity to over 1 million wafers a year by the end of 2028.
The company is positioning for growth in optical networking, with silicon photonics on track to reach over $200 million in revenue in 2025 and projected to become a billion-dollar-plus run-rate business before the end of the decade.

Nov 12, 2025, 1:30 PM

Transcript

GlobalFoundries Reports Strong Q3 2025 Results and Provides Q4 2025 Guidance

GFS

Earnings

Guidance Update

New Projects/Investments

GlobalFoundries reported strong Q3 2025 financial results, with revenue of $1.688 billion and diluted earnings per share of $0.41, both at the high end of guidance. The company also provided Q4 2025 guidance, projecting total revenue of $1.8 billion \u00b1$25 million and diluted EPS of $0.47 \u00b1$0.05.
Key growth drivers include the automotive and communications, infrastructure, and data center markets, which collectively accounted for 28% of Q3 revenue. Silicon Photonics revenue is on track to exceed $200 million in 2025, nearly doubling year-over-year, and is expected to become a billion-dollar-plus run-rate business before the end of the decade.
The company is expanding its global manufacturing footprint with investments of $16 billion in the U.S. and an additional EUR 1.1 billion in its Dresden fab, aiming to increase Dresden's capacity to over 1 million wafers annually by 2028. These efforts support customer demand for geographically diversified semiconductor supply.
GlobalFoundries secured nearly 150 new design wins in Q3 2025, marking over 50% growth from the prior year, with more than 90% of these wins being on a sole-source basis.