Financial Data and Key Metrics Changes - GlobalFoundries reported fourth quarter revenue of $1.83 billion, an 8% sequential increase and flat year-over-year [28] - Full year revenue reached approximately $6.791 billion, up 1% year-over-year [28] - Gross profit for the fourth quarter was $530 million, translating to a gross margin of approximately 29%, up 300 basis points sequentially and 360 basis points year-over-year [34] - Full year gross margin was 26.1%, an increase of 80 basis points year-over-year [34] - Net income for the fourth quarter was approximately $310 million, resulting in diluted earnings of $0.55 per share [35] Business Line Data and Key Metrics Changes - Smart mobile devices accounted for approximately 36% of fourth quarter revenue, with a 13% sequential decline and 11% year-over-year decrease [29] - Automotive represented approximately 23% of fourth quarter revenue, with a 40% sequential increase and 3% year-over-year growth [31] - Home and industrial IoT made up approximately 17% of fourth quarter revenue, with a 17% sequential increase but a 15% year-over-year decline [31] - Communications infrastructure and data center contributed approximately 12% of fourth quarter revenue, with a 29% sequential increase and 32% year-over-year growth [32] Market Data and Key Metrics Changes - Automotive revenue grew approximately 17% year-over-year to a record $1.4 billion [31] - Communications infrastructure and data center revenue grew 29% year-over-year, driven by strong momentum in optical networking and silicon photonics [32] - Satellite communications revenue exceeded $100 million in 2025, marking significant growth [32] Company Strategy and Development Direction - GlobalFoundries is focusing on three core pillars: technology differentiation, deep customer partnerships, and leveraging a diversified geographical footprint [7] - The company aims to reach a $1 billion run-rate revenue for silicon photonics by the end of 2028, driven by strong customer demand and recent acquisitions [15] - Significant investments include $16 billion in the U.S. and EUR 1.1 billion in the Dresden facility to expand manufacturing capabilities [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term potential, citing record design win momentum and a clear path towards a richer mix of business [25] - The company is well-positioned to capitalize on megatrends such as AI data centers and the need for resilient semiconductor supply chains [11] - Management expects to achieve over 30% year-on-year revenue growth in communications infrastructure and data center for 2026 [25] Other Important Information - The board of directors authorized a share repurchase of up to $500 million, reflecting confidence in the company's financial position [37] - The company expects total revenue for the first quarter of 2026 to be $1.625 billion, with gross margin around 27% [38] Q&A Session Summary Question: Strategy for silicon photonics and differentiation - Management highlighted the strong demand for silicon photonics as a critical enabler for AI data centers, supported by acquisitions like AMF and InfiniLink [47][49] Question: Strategy with quantum computing - Management expressed excitement about quantum computing, emphasizing partnerships across various modalities to build scalable systems [52][54] Question: Supply side tightness and CapEx - Management noted strong demand in differentiated technology areas and emphasized capital efficiency in investments [58][60] Question: Margin structure and OpEx intensity - Management discussed the positive impact of a diversified portfolio on margins and the expected increase in OpEx due to strategic investments [63][66] Question: Synergies between recent acquisitions - Management confirmed synergies between photonics-oriented acquisitions and the broader portfolio, enhancing customer engagement and technology offerings [72][74]

Financial Data and Key Metrics Changes - GlobalFoundries reported fourth quarter revenue of $1.83 billion, an 8% sequential increase and flat year-over-year [28] - Full year revenue reached approximately $6.791 billion, up 1% year-over-year [28] - Gross profit for the fourth quarter was $530 million, translating to a gross margin of approximately 29%, up 300 basis points sequentially and 360 basis points year-over-year [34] - Full year gross margin was 26.1%, an increase of 80 basis points year-over-year [34] - Net income for the fourth quarter was approximately $310 million, resulting in diluted earnings of $0.55 per share [35] Business Line Data and Key Metrics Changes - Smart mobile devices accounted for approximately 36% of fourth quarter revenue, with a 13% sequential decline and an 11% year-over-year decrease [29] - Automotive revenue represented approximately 23% of fourth quarter revenue, increasing 40% sequentially and 3% year-over-year, with full-year revenue growing 17% to a record $1.4 billion [30][31] - Home and industrial IoT represented approximately 17% of fourth quarter revenue, with a 17% sequential increase but a 15% year-over-year decrease [31] - Communications infrastructure and data center revenue grew 29% year-over-year, marking a notable return to growth, with fourth quarter revenue increasing 32% year-over-year [32] Market Data and Key Metrics Changes - The automotive market has seen significant growth, with over 50% more design wins compared to the previous year [20] - Communications infrastructure and data center markets are expected to achieve over 30% year-on-year revenue growth in 2026 [25] - The company expects to reach a $1 billion run-rate revenue level for silicon photonics by the end of 2028, driven by strong customer demand [15] Company Strategy and Development Direction - GlobalFoundries is focusing on three core pillars: technology differentiation, deep customer partnerships, and leveraging a diversified geographical footprint [7] - The company made significant acquisitions in 2025, including AMF and InfiniLink, to enhance its technology differentiation in silicon photonics [7][8] - A commitment to invest $16 billion in the U.S. and EUR 1.1 billion in the Dresden facility to expand manufacturing capabilities [10][11] - The company aims to capitalize on megatrends such as AI data centers, physical AI, and the need for diversified semiconductor supply [11][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term potential, citing record design win momentum and a strong customer engagement pipeline [25][26] - The company anticipates continued growth driven by the scaling of AI data centers and the proliferation of AI into various applications [12][19] - Management highlighted the importance of addressing bottlenecks in networking and power for the continued scaling of AI [12] Other Important Information - The board of directors authorized a share repurchase of up to $500 million, reflecting confidence in the company's financial position [37] - The company expects total revenue for the first quarter of 2026 to be approximately $1.625 billion, with gross margin around 27% [38][39] Q&A Session Summary Question: Strategy for silicon photonics and differentiation - Management highlighted the strong demand for silicon photonics as a critical enabler for AI data centers, emphasizing their robust process technology and global manufacturing footprint [49][50] Question: Strategy regarding quantum computing - Management expressed excitement about quantum computing, noting partnerships across various modalities and the importance of high-volume manufacturing [54][55] Question: Supply side tightness and CapEx - Management noted strong demand in differentiated technology areas and emphasized capital efficiency in investments, supported by government grants [60][61] Question: Margin structure and OpEx intensity - Management discussed the positive impact of a diversified portfolio on margins and the expected increase in OpEx due to strategic investments in R&D and new technologies [66][68] Question: Synergies between recent acquisitions - Management confirmed synergies between photonics-oriented acquisitions and the broader portfolio, enhancing customer engagement and technology offerings [74]

Financial Data and Key Metrics Changes - GlobalFoundries reported fourth quarter revenue of $1.83 billion, an 8% sequential increase and flat year-over-year [27] - Full year revenue reached approximately $6.791 billion, up 1% year-over-year [27] - Gross profit for the fourth quarter was $530 million, translating to a gross margin of approximately 29%, up 300 basis points sequentially and 360 basis points year-over-year [34] - Full year gross margin was 26.1%, an increase of 80 basis points year-over-year [34] - Net income for the fourth quarter was approximately $310 million, resulting in diluted earnings of $0.55 per share [35] Business Line Data and Key Metrics Changes - Smart mobile devices accounted for approximately 36% of fourth quarter revenue, with a 13% sequential decline and 11% year-over-year decrease [28] - Automotive revenue represented approximately 23% of fourth quarter revenue, increasing 40% sequentially and 3% year-over-year, with full-year revenue growing 17% to a record $1.4 billion [30][31] - Home and industrial IoT represented approximately 17% of fourth quarter revenue, with a 17% sequential increase but a 15% year-over-year decrease [31] - Communications infrastructure and data center revenue grew 29% year-over-year, marking a notable return to growth, with fourth quarter revenue increasing 29% sequentially and 32% year-over-year [32] Market Data and Key Metrics Changes - The automotive market saw over 50% more design wins compared to the previous year, indicating strong growth momentum [20] - Communications infrastructure and data center end market is expected to achieve over 30% year-on-year revenue growth in 2026 [25] - Silicon photonics revenue is projected to nearly double again in 2026, driven by strong customer demand [14] Company Strategy and Development Direction - GlobalFoundries is focusing on three core pillars: technology differentiation, deep customer partnerships, and leveraging a diversified geographical footprint [7] - The company aims to capture opportunities in AI data centers, physical AI, and the need for resilient semiconductor supply chains [12][19] - Significant investments include $16 billion in the U.S. and EUR 1.1 billion in expanding the Dresden facility [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term potential, citing record design win momentum and a clear path towards a richer mix of business [25][26] - The company is well-positioned to capitalize on key industry megatrends, including the scaling of AI data centers and the need for diversified semiconductor supply [12][19] - Management expects to maintain a similar quarterly operating expense run rate for the first half of 2026, with gross margin projected at approximately 27% [39] Other Important Information - The board of directors authorized a share repurchase of up to $500 million, reflecting confidence in the company's financial position [37] - The company expects adjusted free cash flow for the full year 2025 to be approximately $1.2 billion, demonstrating strong cash generation capabilities [36] Q&A Session Summary Question: Strategy for silicon photonics and differentiation - Management highlighted the importance of silicon photonics as a critical enabler for AI data centers, emphasizing strong process technology and partnerships [45][46] Question: Strategy regarding quantum computing - Management expressed excitement about quantum computing, focusing on building scalable, fault-tolerant systems and partnerships across various quantum modalities [48][49] Question: Supply chain visibility and CapEx - Management noted strong demand in differentiated technology areas and emphasized capital efficiency in investments, supported by government grants [52][53]

Fourth Quarter and Full-Year 2025 Financial Results (unaudited) February 11, 2026 1 Disclaimer - Forward-looking statements and Third-Party Data This presentation and the accompanying oral presentation also contain estimates and other statistical data made by independent parties and by us relating to market size and growth and other data about our industry and business. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. We have not i ...