GlobalFoundries Revenue Drops 11% to $1.85 bn in Third Quarter

GlobalFoundries, a leading semiconductor manufacturing company, has released its financial results for the third quarter ended on September 30, 2023, and unveiled several significant business highlights.
GlobalFoundries Chip businessKey Third Quarter Financial Highlights

Revenue: GlobalFoundries reported 11 percent drop in revenue to $1,852 million, reflecting poor demand conditions in the semiconductor market.

Gross Margin: The company achieved a gross margin of 28.6 percent, showcasing its commitment to efficiency and profitability.

Operating Margin: GlobalFoundries demonstrated a solid operating margin of 14.1 percent, indicating effective cost management and operational excellence.

Net Income: The company recorded a net income of $249 million for the third quarter, affirming its financial stability and success.

Recent Business Highlights

Department of Defense Contract: GlobalFoundries secured a new 10-year contract from the U.S. Department of Defense. Under this contract, the company will supply securely manufactured, U.S.-made semiconductors for critical aerospace and defense applications. This contract underscores GlobalFoundries’ vital role in national security.

Expansion in Asia: GlobalFoundries expanded its global operations by officially opening its fabrication plant in Singapore and a new operations support facility in Penang, Malaysia. These expansions have created 1,300 high-value jobs, contributing to economic growth and technological advancement in these regions.

Advanced RF Technology: GlobalFoundries announced its latest advancement in radio frequency (RF) technology, the 9SW RFSOI. This technology is expected to deliver significant improvements in performance and integration, especially for 5G and wireless communication applications. This innovation underscores the company’s commitment to staying at the forefront of cutting-edge semiconductor technology.

GlobalFoundries’ third-quarter financial results, along with these noteworthy business developments, highlight the company’s strong performance, strategic growth, and technological advancements in the semiconductor industry. As the demand for advanced semiconductor technology continues to rise, GlobalFoundries is well-positioned to play a pivotal role in meeting these needs, both in the United States and around the world.