www.counterpointresearch.com/, May. 09, 2024 –
GlobalFoundries' (GF) revenue fell 16% YoY in Q1 2024 to reach $1.5 billion, hurt by weak demand in the Communications Infrastructure and Data Centre, and lower-end Consumer and Home Electronics segments. Revenue was also constrained by weak global macroeconomic conditions, geopolitical instability and elevated inventory levels. However, the decline in revenue was limited by higher ASPs, premium tier mix growth, continued content growth and value capture in 5G RF front-end content along with strong growth in the Automotive segment.
Commenting on GF's funding and innovation, CEO Thomas Caulfield said, "As pockets of the semiconductor industry begin to emerge from the inventory correction, GlobalFoundries is driving foundry innovation and differentiation for customers across their essential end-markets."
Caulfield further added that GF has received awards from both the US Department of Commerce and New York State to expand manufacturing capability in the US, which will complement the company's unique global capacity offering.
Senior Analyst Ashwath Rao said, "The funding will help expand GF's existing fab by adding critical technologies and will be utilized to construct a new facility to meet customer demand for US-made essential chips across a broad range of markets and applications including automotive, aerospace, defense, and AI. Further, the investments will aid GF in modernizing and expanding its manufacturing capacity and leverage the site's existing infrastructure and ecosystem, enabling a fast and efficient path from construction to production."
Caulfield added, "GF has accelerated diversification in the last five to six years and made sure each global site has a diversification not just having a global footprint but also a broad range of technologies so that customers can source globally and locally and ensure GFs facilities stay full. The rate and pace of new LTAs have slowed down in certain end markets as customers are working through inventory in the channels."