Financial Data and Key Metrics Changes - First quarter revenue was $1,585 million, representing a 13% decrease sequentially but a 2% increase year over year [25] - Gross profit for the first quarter was $379 million, translating to a gross margin of approximately 23.9% [28] - Net income for the first quarter was $189 million, an increase of $15 million from the previous year [29] - Adjusted free cash flow for the quarter was $165 million, representing a free cash margin of approximately 10% [8][30] Business Line Data and Key Metrics Changes - Automotive revenue represented approximately 19% of total revenue, decreasing 25% sequentially but increasing 16% year over year [27] - Smart mobile devices accounted for approximately 37% of total revenue, with a 21% sequential decrease and a 14% year-over-year decrease [26] - IoT revenue represented approximately 21% of total revenue, decreasing 8% sequentially but increasing 6% year over year [27] - Communications infrastructure and data center revenue increased approximately 2% sequentially and 45% year over year, representing 11% of total revenue [28] Market Data and Key Metrics Changes - The automotive market is expected to see meaningful year-over-year revenue growth in 2025 despite short-term unit sales challenges [15] - The IoT market returned to year-over-year growth in Q1, but uncertainty remains for the second half of the year due to tariffs [19] - The communications infrastructure and data center market is projected to grow in the high teens for 2025, driven by substantial investments in data centers [52] Company Strategy and Development Direction - The company is focused on generating free cash flow and maintaining operational excellence while navigating geopolitical tensions and trade uncertainties [9][10] - Investments exceeding $7 billion have been made in U.S., Germany, and Singapore facilities since 2021 to enhance manufacturing scale and technology diversity [10] - The company anticipates a serviceable addressable market growth of approximately 10% per annum through the end of the decade [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ongoing trade and tariff disputes impacting the semiconductor supply chain and is closely monitoring the situation [9] - Despite uncertainties, the long-term demand for essential chip technologies remains strong, with a focus on security of supply for customers [11][35] - The company is well-positioned to grow at or faster than overall market growth rates due to its differentiated technologies and global footprint [11] Other Important Information - The company has a strong balance sheet with $4.7 billion in liquidity and declining leverage [13] - The second quarter revenue guidance is set at $1,675 million, with expectations for gross margin in the range of 25% [31] Q&A Session Summary Question: Impact of tariffs on revenue and manufacturing geography - Management has not seen significant short-term impacts from tariffs on orders but is closely monitoring the situation for potential medium-term effects [38] - The manufacturing footprint provides optionality for customers, with increased interest in U.S. content from various sectors [40][41] Question: ASP trends and gross margin maintenance - ASPs are expected to decline mid-single digits for the year, primarily due to product mix and underutilization payments [42][44] - Management remains confident in maintaining gross margins through better utilization and structural cost improvements [45] Question: Growth expectations in communications infrastructure and data center - High teens growth is expected for the communications infrastructure and data center market in 2025, driven by increased data center investments [52] Question: Outlook for automotive and smart mobile devices - Automotive is expected to continue growing, while smart mobile devices are projected to remain flattish due to inventory adjustments [60][63]

Group 1: Earnings Performance - GlobalFoundries Inc. reported quarterly earnings of $0.34 per share, exceeding the Zacks Consensus Estimate of $0.28 per share, and up from $0.31 per share a year ago, representing an earnings surprise of 21.43% [1] - The company posted revenues of $1.59 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.46%, and compared to year-ago revenues of $1.55 billion [2] - Over the last four quarters, GlobalFoundries has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - GlobalFoundries shares have declined approximately 16.4% since the beginning of the year, while the S&P 500 has decreased by 3.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.35 on revenues of $1.67 billion, and for the current fiscal year, it is $1.67 on revenues of $6.95 billion [7] Group 3: Industry Context - The Electronics - Semiconductors industry, to which GlobalFoundries belongs, is currently in the top 35% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]

Financial Data and Key Metrics Changes - First quarter revenue was $1,585 million, representing a 13% decrease sequentially but a 2% increase year over year [26] - Gross profit for the first quarter was $379 million, translating to a gross margin of approximately 23.9% [29] - Net income for the first quarter was $189 million, an increase of $15 million from the previous year [30] Business Line Data and Key Metrics Changes - Automotive revenue represented approximately 19% of total revenue, decreasing 25% sequentially but increasing 16% year over year [28] - Smart mobile devices accounted for approximately 37% of total revenue, with a 21% sequential decrease and a 14% year-over-year decrease [27] - Communications infrastructure and data center revenue increased approximately 2% sequentially and 45% year over year, representing about 11% of total revenue [29] Market Data and Key Metrics Changes - Revenue from home and industrial IoT markets represented approximately 21% of total revenue, decreasing 8% sequentially but increasing 6% year over year [28] - The automotive market is expected to see meaningful year-over-year revenue growth in 2025 despite current soft demand [15] - The IoT segment returned to year-over-year growth in Q1, but caution is advised for the second half of the year due to tariff uncertainties [20] Company Strategy and Development Direction - The company is focused on free cash flow generation as a key objective, with $165 million of non-IFRS adjusted free cash flow reported for Q1 [7] - Investments exceeding $7 billion have been made in U.S., Germany, and Singapore facilities since 2021 to enhance manufacturing scale and technology diversity [10] - The serviceable addressable market is anticipated to grow at approximately 10% per annum through the end of the decade, with the company positioned to grow at or faster than market rates [11] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing geopolitical tensions and trade uncertainties impacting the global economy, but expressed confidence in the company's long-term growth opportunities [7] - The company is monitoring supply chain dynamics closely and diversifying sourcing strategies to mitigate potential impacts on costs [9] - Despite uncertainties, the long-term demand for essential chip technologies remains strong, with a robust financial profile and declining leverage [13] Other Important Information - The company expects total revenue for Q2 2025 to be approximately $1,675 million, with gross margin guidance in the range of 25% [32] - Operating expenses for Q1 were approximately 10% of total revenue, with R&D expenses at $114 million [29] - The company has a strong liquidity position with $4.7 billion in cash and marketable securities [13] Q&A Session Summary Question: Impact of tariffs on revenue - Management indicated no significant short-term impacts from tariffs on orders, but remains cautious about potential medium-term effects on consumer and industrial demand [41] Question: ASP outlook for the year - ASPs are expected to decline mid-single digits due to product mix and underutilization payments, but gross margins are expected to be supported by better utilization and structural cost improvements [47][49] Question: Growth expectations for communication infrastructure and data center - Management anticipates high teens growth for the communication infrastructure and data center segment in 2025, driven by substantial investments in data centers [55] Question: Recovery in automotive market - The automotive segment is expected to continue growing, with strong design wins and increasing semiconductor content in vehicles [67] Question: Inorganic growth strategy - The company is open to inorganic growth opportunities that align with its strategy, particularly in enhancing its differentiated chip portfolio [90]

Financial Data and Key Metrics Changes - First quarter revenue was $1,585 million, representing a 13% decrease quarter-over-quarter but a 2% increase year-over-year [25] - Non-IFRS adjusted free cash flow was $165 million, translating to a free cash margin of approximately 10% [8][30] - Gross profit for the first quarter was $379 million, resulting in a gross margin of approximately 23.9% [28] Business Line Data and Key Metrics Changes - Automotive revenue represented approximately 19% of total revenue, decreasing 25% sequentially but increasing 16% year-over-year [27] - Smart mobile devices accounted for approximately 37% of total revenue, with a 21% sequential decrease and a 14% year-over-year decrease [26] - Communication infrastructure and data center revenue increased approximately 2% sequentially and 45% year-over-year, representing about 11% of total revenue [28] Market Data and Key Metrics Changes - The automotive market is expected to see meaningful year-over-year revenue growth in 2025, driven by increasing silicon content in vehicles [15] - The IoT market returned to year-over-year growth in Q1, but uncertainty remains for the second half of the year due to tariffs [19] - The communication infrastructure and data center market is projected to grow in the high teens for the full year 2025 [54] Company Strategy and Development Direction - The company is focused on free cash flow generation and has invested over $7 billion in facilities since 2021 to support growth [10][11] - The serviceable addressable market is anticipated to grow at approximately 10% per annum through the end of the decade [11] - The company aims to leverage its differentiated technologies and global footprint to gain market share in critical end markets [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing trade and tariff disputes impacting the semiconductor supply chain and end market demand dynamics [9] - Despite uncertainties, the long-term demand for essential chip technologies remains strong, with a robust financial profile and declining leverage [13] - The company is monitoring the changing landscape closely and diversifying sourcing strategies to mitigate potential impacts [9][10] Other Important Information - The company expects total revenue for Q2 2025 to be approximately $1,675 million, with gross margin guidance of around 25% [31] - The company has a strong balance sheet with $4.7 billion in liquidity and a total debt of $1.1 billion [13][30] Q&A Session Summary Question: Impact of tariffs on revenue and manufacturing flexibility - Management noted no significant short-term impacts from tariffs on orders, but they are closely monitoring the situation for potential medium-term effects [38][40] Question: ASP trends and gross margin maintenance - ASPs are expected to decline mid-single digits due to product mix changes, but gross margins can be maintained through better utilization and structural cost improvements [42][46] Question: Growth expectations in communication infrastructure and data center - Management expects high teens growth in the communication infrastructure and data center segment for 2025, driven by substantial investments in data centers [54][56] Question: Outlook for automotive and smart mobile devices - The automotive segment is expected to continue growing, while the smart mobile device market is anticipated to remain flattish in 2025 [61][66] Question: Long-term margin targets - The company aims to exit 2025 with a gross margin of 30%, supported by improved utilization and product mix [70][78]

GLOBALFOUNDRIES Inc. TABLE OF CONTENTS | Part 1 - Unaudited Financial Statements | Page | | --- | --- | | Interim Condensed Consolidated Statements of Financial Position | 2 | | Interim Condensed Consolidated Statements of Operations | 3 | | Interim Condensed Consolidated Statements of Comprehensive Income (Loss) | 4 | | Interim Condensed Consolidated Statements of Cash Flows | 5 | | Interim Condensed Consolidated Statements of Changes in Equity | 6 | | Notes to Interim Condensed Consolidated Financial Stat ...

First Quarter 2025 Financial Results Non-IFRS financial information is presented for supplemental informational purposes only and should not be considered in isolation or as a substitute for financial information presented in accordance with IFRS. Our presentation of Non-IFRS measures should not be construed as an inference that our future results will be unaffected by unusual or nonrecurring items. Other companies in our industry may calculate these measures differently, which may limit their usefulness as ...

Core Insights - GLOBALFOUNDRIES Inc. reported strong preliminary financial results for Q1 2025, achieving revenue and earnings at the high end of its Non-IFRS guidance ranges, driven by growth in key markets such as Automotive, Communications Infrastructure, and Datacenter [3][7] Financial Highlights - Net revenue for Q1 2025 was $1.585 billion, a year-over-year increase of 2% from $1.549 billion in Q1 2024 [6][14] - Gross profit was $355 million, with a gross margin of 22.4%, down from 25.4% in Q1 2024 [6][7] - Non-IFRS gross profit was $379 million, with a Non-IFRS gross margin of 23.9% [6][7] - Operating profit was $151 million, with an operating margin of 9.5% [9][14] - Net income was $211 million, translating to diluted earnings per share of $0.38, compared to $0.24 in Q1 2024 [7][14] Business Developments - The company announced a strategic partnership with indie Semiconductor to develop high-performance radar systems-on-chip, targeting advanced driver assistance systems [8] - Ayar Labs will utilize GF's monolithic photonics platform for the industry's first Universal Chiplet Interconnect Express optical interconnect chiplet, enhancing AI infrastructure performance [8] - Bosch launched a next-generation single chip radar sensor at Auto Shanghai, continuing its partnership with GF to enable high-performance automotive radar technology [8] Guidance for Q2 2025 - The company expects Q2 2025 net revenue to be approximately $1.675 billion, with a gross margin of around 24.1% [10][11] - Diluted EPS is projected to be approximately $0.27 under IFRS and $0.36 under Non-IFRS measures [10][11]

Market Reaction - Semiconductor stocks experienced significant declines, with Wolfspeed dropping 14.6%, NXP Semiconductors down 6.6%, and Rambus falling 4.7% [1] - Other notable declines include ON Semiconductor at 2.4%, Supermicro at 2.3%, and Micron Technology at 1.67% [1] Government Policy Impact - The Trump administration is reportedly working on modifying a rule from the Biden era that restricts most countries from accessing U.S.-designed AI chips [1] - The proposed changes may involve replacing the current tiered system with intergovernmental agreements [1]

Taiwan Semiconductor Manufacturing Company (TSM) and GlobalFoundries (GFS) are two of the most prominent players in the global semiconductor foundry space, but they offer very different propositions. TSM leads in cutting-edge chip manufacturing with a dominant market share, while GFS targets differentiated processes and specialty technologies.With 2025 shaping up as a pivotal year for the semiconductor industry, which foundry stock offers a more compelling investment option today? Let’s find out.The Case fo ...

市场消息：晶圆代工企业联电被问及有关与同业格芯（格罗方德）合作的相关媒体报导时表示，目前未 有合并活动。 ...