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GlobalFoundries Inc. (GF) announced preliminary financial results for the third quarter ended September 30, 2024.
Key Third Quarter Financial Highlights
- Revenue of $1.739 billion
- Gross margin of 23.8% and Non-IFRS gross margin of 24.7%
- Operating margin of 10.6% and Non-IFRS operating margin of 13.6%
- Net income of $178 million and Non-IFRS net income of $229 million
- Non-IFRS adjusted EBITDA of $627 million
- Cash, cash equivalents and marketable securities of $4.3 billion
- Year to date net cash provided by operating activities of $1,265 million and Non-IFRS adjusted free cash flow of $779 million
“In the third quarter, the GF team continued to execute next generation opportunities with our customers, by securing key design wins across our growing portfolio of essential chip technologies,” said Dr. Thomas Caulfield, President and CEO of GF. “We delivered consistent financial results at the upper end of the guidance ranges we provided in our August earnings release, and as we continue to navigate the ongoing uncertainties facing our industry, we remain on-track to deliver approximately a threefold increase in our year-over-year Non-IFRS adjusted free cash flow generation by the end of 2024.”
Recent Business Highlights
- Building on the longtime relationship between GF and NXP Semiconductors (NXP), the companies announced a new collaboration leveraging GF’s 22FDX® process technology platform and global manufacturing footprint to optimize the power, performance and time-to-market of NXP’s solutions across a range of automotive, IoT and smart mobile devices. GF’s 22FDX chips will be manufactured in Dresden, Germany and Malta, New York, providing NXP geographically diverse supply for their customers.
- Over one thousand customers and partners attended GF’s annual Technology Summit held around the world in Santa Clara, California, Munich, Germany and Shanghai, China, to build deeper relationships and learn how GF’s essential chips play a critical role in realizing “AI Everywhere.”
- GF entered into a strategic technology development and licensing agreement with Finwave Semiconductor, Inc (Finwave), a leading innovator in GaN technology. The collaboration will optimize and scale Finwave’s cutting-edge GaN-on-Si technology to volume production at GF’s 200mm fab in Burlington, Vermont.
Original – GlobalFoundries
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GlobalFoundries Inc. announced preliminary financial results for the second quarter ended June 30, 2024.
Key Second Quarter Financial Highlights
- Revenue of $1.632 billion
- Gross margin of 24.2% and Non-IFRS gross margin of 25.2%
- Operating margin of 9.5% and Non-IFRS operating margin of 13.0%
- Net income of $155 million and Non-IFRS net income of $211 million
- Non-IFRS Adjusted EBITDA of $610 million
- Cash, cash equivalents and marketable securities of $4.1 billion
- Year to date net cash provided by operating activities of $890 million and Non-IFRS adjusted free cash flow of $563 million
“In the second quarter, GF delivered financial results that exceeded the mid-point of the guidance ranges we provided in our May earnings release, thanks to the dedication of our employees across the world. We remain focused on a disciplined capex strategy and strong cash flow, with over $500 million of cumulative Non-IFRS adjusted free cash flow generation in the first half of 2024,” said Dr. Thomas Caulfield, president and CEO of GF. “I am proud of how well our teams are partnering with our customers on new design wins, delivering best in class technologies and executing our long-term plans.”
Recent Business Highlights
- GF announced that it has acquired Tagore Technology’s proprietary and production-proven Power Gallium Nitride (GaN) business, including its design team and IP portfolio. The acquisition expands GF’s power IP portfolio and aligns with GF’s objectives to support our customers in the rapidly expanding GaN power devices sector.
- BAE Systems and GF announced a new collaboration to strengthen the supply of critical semiconductors for national security programs. Together, the companies will collaborate on R&D in a range of areas, including advanced packaging, GaN, silicon photonics and process development.
- GF released its 2024 Corporate Sustainability Report, which highlights the breadth of GF’s efforts and progress in the areas of sustainability, social responsibility and corporate governance. GF strives to innovate and partner with customers to enable new, smarter and more efficient technologies while also minimizing our impact on the environment, driving positive change and creating lasting value.
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GlobalFoundries announced that it has acquired Tagore Technology’s proprietary and production proven Power Gallium Nitride (GaN) IP portfolio, a high-power density solution designed to push the boundaries of efficiency and performance in a wide range of power applications in automotive, internet of things (IoT) and artificial intelligence (AI) datacenter. As the digital world continues to evolve with technologies like Generative AI, GaN stands out as a pivotal solution for sustainable and efficient power management particularly in datacenters.
Today’s announcement reinforces GF’s commitment to large-scale manufacturing of GaN technology that offers a suite of benefits to help datacenters meet the increasing power demands while maintaining or improving power efficiency, reducing costs and managing heat generation. The acquisition expands GF’s power IP portfolio and broadens access to market leading GaN IP that will enable GF customers to quickly bring differentiated products to market. As a part of the acquisition, a team of experienced engineers from Tagore, dedicated to the development of GaN technology, will be joining GF.
“We are committed to being the foundation of our customers’ power applications today and for decades to come,” said Niels Anderskouv, chief business officer at GF. “With this acquisition, GF takes another step toward accelerating the availability of GaN and empowering our customers to build the next generation of power management solutions that will reshape the future of mobility, connectivity and intelligence.”
“The accelerating demand for more power efficient semiconductors is dramatically increasing, and Tagore has been at the forefront of developing disruptive solutions using GaN technology for a wide range of power devices,” said Amitava Das, co-founder and chief operating officer of Tagore Technology. “The team and I are excited to join GlobalFoundries to increase our focus on market-leading IP that will help address power design challenges and support the continued evolution of automotive, industrial and AI datacenter power delivery systems.”
In February 2024, GF was awarded $1.5 billion in direct funding under the U.S. CHIPS and Science Act, part of that investment is targeted towards enabling the high-volume manufacturing of critical technologies including GaN to securely produce more essential chips.
Combining this manufacturing capacity with the technical know-how of the Tagore team, GF is set to transform AI system efficiency, especially in edge or IoT devices, where reduced power consumption is critical.
“GlobalFoundries is at the forefront of technological advancements. With Tagore Technology joining the GF India team, we will further enhance our tech capabilities, particularly in emerging areas like GaN,” said Jitendra Chaddah, vice president and India country head at GF. “I welcome the Tagore team to GF, and I am excited about the work we will do as we continue to grow and strengthen our engineering capabilities together.”
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ElevATE Semiconductor and GlobalFoundries announced a manufacturing partnership for high-voltage chips produced at GF’s facility in Essex Junction, Vermont. Designed by ElevATE and manufactured at scale by GF on its proven and power-efficient 7HV technology platform, the chips are vital to both commercial semiconductor testing equipment and critical applications for aerospace and defense systems.
The agreement outlines GF’s supply of its 7HV chip technology to ElevATE and the marketplace. Manufactured on 200mm wafers at GF’s Vermont facility, the mature-node chips pair power management and wireless sensing capabilities, delivering the performance, design flexibility and power efficiency required by a range of electronics devices in national security systems. The 7HV platform is optimized for cost and performance, and offers a full suite of features and options with well-characterized design tools, as well as proven manufacturing reliability with robust yields.
To meet the demands of commercial clients and the aerospace and defense industry, ElevATE and GF are collaborating to provide restart support and reestablish the production of 7HV chips. The renewed availability of the 7HV platform will save customers costs, time, and the challenge of redesigning their products using a different chip technology. The new supply will build upon the success of the millions of 7HV chips previously manufactured at GF’s Vermont facility.
“This collaboration marks a significant transformation in ElevATE’s production strategy, transitioning its fabrication processes to GlobalFoundries,” said Anil Kodali, Vice President of Operations and Quality Assurance at ElevATE. “With GF as our manufacturing partner, we can be sure of a robust and reliable source of supply, enabling us to meet the escalating demands of our customers in terms of volume, quality and time-to-market.”
“Our collaboration with ElevATE underscores GF’s commitment to ensuring the U.S. semiconductor and national security ecosystems have a reliable supply of secure, domestically manufactured chips,” said Nicholas Sergeant, vice president and head of the aerospace, defense and critical infrastructure business at GF. “As the leading supplier of essential chips for the U.S. aerospace and defense industry and a longstanding partner to the Department of Defense, GF goes above and beyond to ensure our national security customers have the chips they need, manufactured where they want them, with the right level of security.”
GF’s facility in Essex Junction, Vermont, near Burlington, was among the first major semiconductor manufacturing sites in the United States. Today, around 1,800 GF employees work at the site. Built on GF’s differentiated technologies, these GF-made chips are used in smartphones, automobiles, and communications infrastructure applications around the world. The facility is a DMEA-accredited Trusted Foundry and manufactures secure chips in partnership with the U.S. government.
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GlobalFoundries announced a partnership with Micron Technology, Inc. and the U.S. National Science Foundation (NSF) to invest in workforce development at Minority Serving Institutions (MSI) to help meet the growing workforce needs of the U.S. semiconductor ecosystem.
In partnership with Micron and the NSF, the investment will support semiconductor workforce development at Historically Black College and Universities, Hispanic Serving Institutions, Asian American Native American Pacific Islander-Serving Institutions and Tribal Colleges and Universities throughout the U.S. These investments aim to diversify the semiconductor workforce and build robust talent pathways through education and career reentry initiatives.
The companies’ and NSF ’s support of U.S. MSIs is directly aligned with the workforce development objectives of the federal CHIPS and Science Act as well as New York State’s Green Chips legislation, to ensure a robust pipeline of U.S. semiconductor talent.
“As an industry, we must work together to collectively address the great need for a robust, diverse pipeline of talented individuals who will be the semiconductor innovators and leaders of tomorrow,” said Pradheepa Raman, chief people officer of GF. “Strong public-private partnerships, like our collaboration with Micron and NSF to support Minority Serving Institutions, are critical to continue the work of inspiring and developing the skilled workforce our industry needs to grow.”
“Partnering with leaders in industry, government and education to meet the needs of a growing semiconductor workforce in the U.S. is an essential part of nurturing the talent necessary to fill key openings in the semiconductor industry,” said Erwin Gianchandani, NSF assistant director for Technology, Innovation and Partnerships. “We look forward to collaborating with our partners to increase access to equitable education, address student programming and teacher and faculty professional development and strengthen infrastructure through future funding opportunities.”
“Micron’s investments in U.S. expansion are about much more than building fabs. We’re investing in people and in partnerships to expose learners from every background to opportunities they may not otherwise have without support,” said April Arnzen, executive vice president and chief people officer at Micron and president of the Micron Foundation. “We’re honored to see initiatives like Micron’s MSI Semiconductor Network, which are at the forefront of our industry’s efforts to prepare the semiconductor workforce and research ecosystem to meet growing demand for talent, recognized by government leaders in the U.S. and globally.”
“Micron’s and GlobalFoundries’ historic investments are transformative for Upstate New York and the nation, and today’s announcement will put in place another critical workforce development initiative to deliver the workers needed to fill the tens of thousands of new jobs that will be created. This initiative will especially focus on connecting underserved and historically marginalized New Yorkers and others around the country to new job opportunities in the semiconductor industry, including to build chips in Upstate NY,” said Senate Majority Leader Chuck Schumer.
“In recent weeks, my CHIPS & Science Law delivered a whopping $6.1 billion for Micron to build their mega-fab project and another $1.5 billion for GlobalFoundries’ expansion. Now, Micron and GlobalFoundries are working to develop a workforce pipeline to train and attract the next generation of talent, putting students from our top-notch educational institutions into jobs in the semiconductor industry. I am glad this initiative is supported by National Science Foundation funds from my CHIPS & Science Law, which serves as the fuel for major investments like Micron’s and GlobalFoundries’ to bring chip manufacturing back to America and helping our future scientists and engineers reach new heights with good-paying jobs right at their doorstep.”
“We are excited about the opportunities to grow efforts with GlobalFoundries that have led to increased summer internships and experiences at GF’s Malta, NY, facility for students at multiple CUNY schools including LaGuardia, Queensborough and City Tech,” said Tavis Ezell, director of business development for The City University of New York’s (CUNY) Advanced Science Research Center (ASRC). “With our industry partners, we are identifying the necessary skills needed to support jobs across the vast semiconductor ecosystem and bolster current curricula across a wide range of CUNY degrees, connecting interested students to training opportunities, whether their first internship experience is at the ASRC, or at an industry partner such as GlobalFoundries.”
GF’s support of MSIs is the company’s latest effort to build a critical talent pipeline for a current and future workforce. In November 2023, the company announced a new student loan repayment program to help U.S.-based employees and eligible new recruits pay up to $28,500 in student loan debt, tax-free, to help ease the financial burden of higher education and training. GF also offers tuition reimbursement for employees pursuing undergraduate and graduate degrees, fully paid parental leave, employee fitness stipend to promote good health and childcare subsidy towards dependent care. GF’s first-of-its-kind apprenticeship program provides opportunities for individuals with no prior experience or training in the semiconductor industry, offering full-time paid positions and cost-free college courses to high school graduates.
GF has established strategic partnerships nationwide with top universities and strong regional engagements with community colleges in New York and Vermont as well as access to worldwide talent through its global footprint to help build a diverse workforce and semiconductor talent pipeline. To help inspire younger children, GF has a robust STEM outreach program to engage with regional middle schools and high schools, including Early College High School and Career and Technical Education programs, to bring industry awareness and hands-on experiences to students.
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GlobalFoundries announced the appointment of industry and company veteran, Kay Chai (KC) Ang, as president of Asia and Chairman of China. With over 30 years of semiconductor foundry experience, Mr. Ang will lead new business development and strategic partnerships across Asia with a focus on China.
Mr. Ang joined GF in 2010 and has served in a variety of senior leadership roles for the company including most recently as Chief Manufacturing Officer with responsibility for GF’s global sites as well as previously as head of all GF’s Singapore operations.
Prior to joining GF, Mr. Ang held senior leadership positions at Chartered Semiconductor Manufacturing, including Senior Vice President of Sales and Marketing with responsibility for global sales, marketing, services, customer support and regional business operations.
Mr. Ang has been a key player in the growth of Singapore’s chip industry. He serves on the Board of the National Research Foundation in Singapore and is the Chairman of the SEMI Southeast Asia Regional Advisory Board.
“At GF, we leverage our global footprint to provide our customers with the secure, essential chips they need, where they want them produced,” said Niels Anderskouv, chief business officer at GF. “Given his more than 30 years experience coupled with his long-standing relationships with some of Asia’s most senior semiconductor industry leaders, KC is the ideal leader to drive customer engagements and partnerships across Asia and accelerate GF’s business growth within the China market in particular.”
“I am excited about this next stage of my career. I am looking forward to partnering with my commercial, technical and product management colleagues to expand GF’s relationships and be a trusted, dependable partner for our customers,” said KC Ang, president, Asia & Chairman, China at GF.
“The differentiated technology solutions that we offer combined with our manufacturing excellence, especially in key end markets such as automotive, make us a perfect partner for fast growing customers in Asia. In addition, we are responding to many of our existing multi-national customers who are looking for ways to partner with GF to serve the growing demands of their Chinese end customers with high quality manufacturing and essential chip technologies.”
Original – GlobalFoundries
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GlobalFoundries Inc. (GF) announced preliminary financial results for the first quarter ended March 31, 2024.
Key First Quarter Financial Highlights
- Revenue of $1.549 billion
- Gross margin of 25.4% and Non-IFRS gross margin of 26.1%
- Operating margin of 9.5% and Non-IFRS operating margin of 12.1%
- Net income of $134 million and Non-IFRS net income of $174 million
- Non-IFRS EBITDA of $577 million
- Cash, cash equivalents and marketable securities of $4.2 billion
“In the first quarter, GF’s dedicated teams across the world delivered financial results that exceeded the high end of the guidance ranges we provided in our February earnings release,” said Dr. Thomas Caulfield, president and CEO of GF. “As pockets of the semiconductor industry begin to emerge from the inventory correction, our teams are driving foundry innovation and differentiation for our customers across their essential end-markets. We are delighted with the awards from both the U.S. Department of Commerce and New York State to expand our manufacturing capability in the United States, which will complement our unique global capacity offering.”
Recent Business Highlights
- As part of the U.S. CHIPS and Science Act, the U.S. Department of Commerce announced $1.5 billion in planned direct funding for GF’s New York and Vermont facilities. The proposed funding will support expansion and technology diversification, enabling secure capacity for automotive, aerospace and defense and other key markets.
- In addition, New York State announced over $600 million in planned funding under the New York State Green CHIPS and other state benefits for GF’s two Malta, New York projects.
- GF is furthering its commitment to sustainable operations and fighting climate change with the announcement of two new long-term goals to achieve net-zero greenhouse gas emissions and 100% carbon neutral power by 2050. The new 2050 goals are aligned with Paris Agreement goals and build upon GF’s Journey to Zero Carbon pledge in 2021.
Original – GlobalFoundries
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The U.S. Department of Commerce announced $1.5 billion in planned direct funding for GlobalFoundries (GF) as part of the U.S. CHIPS and Science Act. This investment will enable GF to expand and create new manufacturing capacity and capabilities to securely produce more essential chips for automotive, IoT, aerospace, defense, and other vital markets.
New York-headquartered GF, celebrating its 15th year of operations, is the only U.S.-based pure play foundry with a global manufacturing footprint including facilities in the U.S., Europe, and Singapore. GF is the first semiconductor pure play foundry to receive a major award (over $1.5 billion) from the CHIPS and Science Act, designed to strengthen American semiconductor manufacturing, supply chains and national security. The proposed funding will support three GF projects:
- Expansion of GF’s existing Malta, NY, fab by adding critical technologies already in production in GF’s Singapore and Germany facilities geared towards enabling the U.S. auto industry. As vehicles transition from mechanical to electronic systems, the number of semiconductor chips in each car or truck continues to soar. This expansion is key to ensuring supply chain resilience for the growing demand and to delivering for GF’s automotive customers including General Motors. This will continue to diversify GF’s flagship Malta fab into new technologies and end markets.
- Construction of a new state-of-art fab on the Malta campus to meet expected customer demand for U.S.-made essential chips across a broad range of markets and applications including automotive, aerospace, defense and AI. The new fab, which has already been granted some necessary permitting, will leverage the site’s existing infrastructure and ecosystem, enabling a fast and efficient path from construction to production. The semiconductor market is expected to double over the next decade, and GF’s new fab will be uniquely positioned to capture the feature-rich mature, essential chip segment which is expected to continue to represent more than 60% of the semiconductor market. Construction of this new fab combined with expansion of GF’s existing site is expected to triple the existing capacity of the Malta campus over the next 10+ years. These two projects are expected to increase wafer production to 1 million per year once all phases are complete.
- Modernization of GF’s longest continuously operated fab and the nation’s first and largest Trusted 200mm facility in Essex Junction, Vermont. The project will upgrade existing facilities, expand capacity as well as create the first U.S. facility capable of high-volume manufacturing of next-generation gallium nitride (GaN) semiconductors for use in electric vehicles, power grids, data centers, 5G and 6G smartphones and other critical technologies.
Based on market requirements and demand, GF plans to invest more than $12 billion over the next 10 plus years across its two U.S. sites through public-private partnerships with support from the federal and state governments as well as from its ecosystem partners, including key strategic customers.
In support of the two Malta, New York projects, Governor Hochul today announced $575 million in planned direct funding for New York State Green CHIPS. Also announced was $15 million in planned funding for NYS Workforce Development activities for GlobalFoundries as well as $30 million in planned funding for NYS Infrastructure upgrades and Energy incentives provided by the New York Power Authority (NYPA).
Combined, these investments are expected to create over 1,500 manufacturing jobs and about 9,000 construction jobs over the life of these projects.
“GF is proud to announce this proposed funding from the Department of Commerce and New York State and appreciates the collaboration of the CHIPS Office and the Empire State Development Corporation throughout this process. These proposed investments, along with the investment tax credit (ITC) for semiconductor manufacturing, are central to the next chapter of the GlobalFoundries story and our industry. They will also play an important role in making the U.S. semiconductor ecosystem more globally competitive and resilient and cements the New York Capital Region as a global semiconductor hub,” said Dr. Thomas Caulfield, president and CEO of GF.
“With new onshore capacity and technology on the horizon, as an industry we now need to turn our attention to increasing the demand for U.S.-made chips, and to growing our talented U.S. semiconductor workforce.”
“Semiconductors are in everything from our cellphones, to refrigerators, to cars, and our most advanced weapons systems, and access to them carries important economic and national security implications. It was the shortages of semiconductors during the COVID-19 pandemic that raised prices for consumers and led to the shutdown of automobile manufacturing sites across the country,” said Secretary of Commerce Gina Raimondo. “Thanks to the CHIPS and Science Act, we’re working to onshore these critical technologies in order to bolster the supply of domestic chips that are essential to manufacturing cars, electronics, and national defense systems in New York, Vermont, and states across the country.”
“I have long said my CHIPS & Science Law would deliver big for New York, and I meant big with a capital ‘B.’ I am proud to announce GlobalFoundries has reached a preliminary agreement for the largest award thus far from the CHIPS program I created for $1.5 billion in grant funding. This will triple production capacity of GlobalFoundries’ already massive campus in Saratoga County, spur billions in public-private investment, and help bring thousands of new good-paying manufacturing and union construction jobs to the Capital Region,” said Senator Schumer.
“When I wrote the CHIPS & Science Law, I made sure there was funding especially for the feature-rich, legacy chips that GlobalFoundries produces in Malta and that are essential for America’s auto industry and national defense. We all remember the days of the pandemic when chip shortages sky rocketed car prices and created supply chain issues leading to months-long wait times for cars and electronics, and investments like this are how we can help prevent that from happening again. Ever since GlobalFoundries’ first Fab 8 broke ground 15 years ago, I knew how significant the company would be for the Capital Region and Upstate NY. Today, the plans for their second chip facility and thousands of new good-paying jobs move forward thanks to the CHIPS & Science Law I fought hard to create.”
“New York State is becoming the best place on earth to build a business,” said Governor Hochul. “Thanks to our pro-business policies, commitment to innovation and best-in-the-nation workforce, green jobs and high-tech manufacturers are flocking to the Empire State. This $11 billion investment from GlobalFoundries is a game changer, and with the partnership of the Biden administration, New York’s congressional delegation, and all of our local stakeholders, the best is yet to come.”
To attract and cultivate a pipeline of semiconductor talent that will be needed in New York and Vermont, GF is creating and investing in numerous initiatives. The company recently announced a new student loan repayment program to help current employees and new recruits pay down student loan debt. The new benefit program is part of the company’s multi-million-dollar investment to strengthen the semiconductor talent workforce by helping to ease the financial burden of higher education and training of the company’s present and future employees.
GF is also partnering with a broad range of universities and community colleges nationwide to help build a diverse workforce and semiconductor talent pipeline. As part of receiving CHIPS and Science Act funding, GF will continue to invest in and develop new workforce development efforts including curriculum development, internship and apprenticeship programs, K-12 STEM outreach as well as additional education and training programs.
All of GF’s design and construction plans for its expansions and modernizations in New York and Vermont will reflect GF’s ongoing commitment to sustainable operations and comply with the company’s sustainability goals.
Customers, government officials and academia celebrate the news from the U.S. Department of Commerce and GF:
“We are pleased that GlobalFoundries will be receiving a $1.5 billion investment from the U.S. CHIPS and Science Act,” said Dr. Lisa Su, Chair and CEO of AMD. “GlobalFoundries is a strategic supplier and key enabler of AMD’s high-performance computing products. The planned investment demonstrates the commitment of the U.S. government to strengthen the domestic chip supply chain for economic growth and ensure the long-term competitiveness of the U.S. semiconductor ecosystem.”
“Semiconductors are critical to today’s vehicles,” said General Motors President Mark Reuss. “GlobalFoundries’ investment in New York both ensures a robust supply of semiconductors in the U.S. to help GM meet demand and supports U.S. leadership in automotive innovation.”
“Lockheed Martin is proud of our strategic partnership with GlobalFoundries to help increase access to domestically produced microelectronics – a true national security imperative,” said Jim Taiclet, chairman, president and CEO of Lockheed Martin. “The Department of Commerce’s announcement led by Secretary Raimondo will enable GlobalFoundries to continue providing essential technology to further strengthen Lockheed Martin’s secure and robust global supply chain. We look forward to the results of this announcement as part of our commitment to delivering cutting-edge 21st Century Security capabilities that advance deterrence and keep our customers ahead of emerging threats.”
“Qualcomm welcomes today’s announcement from the U.S. Department of Commerce CHIPS office regarding funding for GlobalFoundries expansion of their U.S. chip making operations. GlobalFoundries’ commitment to providing additional chip production capacity that allows us to continue pushing the boundaries of the innovation for 5G, Automotive and IoT applications. We are pleased to partner with a company that shares our vision for a more resilient global supply chain for chip production,” said Dr. Roawen Chen, Chief Supply Chain and Operations Officer, Qualcomm Technologies, Inc.
“GlobalFoundries has been a national leader in semiconductor and chips innovation, putting Vermont at the forefront of this emerging technology. This is a well-deserved recognition of GlobalFoundries’ commitment to bolstering the on-shore growth of U.S.-made chips,” said Sen. Peter Welch. “This investment, made possible by the CHIPS and Science Act and the White House and Secretary Raimondo’s commitment to competitiveness and security, will create jobs while making our supply chains more resilient. Even more impressive, this new site will see its commitment to sustainability through with a plan to use carbon-free neutral energy practices —leading in innovation and in action.”
“This is huge news for Vermont and the region,” said Governor Phil Scott. “The CHIPS Act funding will help encourage innovation and expansion of this vital sector in our state and across the country. I’m proud of the work my team has done with GF and others to assist and I want to thank the Biden Administration and our congressional delegation for their continued partnership.”
“Today’s announcement is nothing short of a gamechanger for Saratoga County and the greater Capital Region. It is proof positive that our Investing in America agenda not only bolsters national security and global economic competitiveness, it can create thousands of good paying jobs right here at home. I look forward to working closely with GlobalFoundries and local, state and federal partners to make these historic plans a reality,” said Congressman Paul Tonko.
“We extend our congratulations to GlobalFoundries for achieving this important milestone that will ignite regional economic growth while reinforcing the vital collaboration between Hudson Valley Community College and GF. Since 2021, through a first-of-its kind U.S. Registered Apprenticeship program, HVCC has been assisting GF in expanding its technical workforce by providing top-notch education and training to apprentices. Additional funding from CHIPS will enable us to expand our role as a critical partner in developing a highly skilled workforce for the semiconductor industry through our partnership with GlobalFoundries,” said Dr. Roger Ramsammy, president of Hudson Valley Community College.
“We congratulate GlobalFoundries on this crucial milestone. Federal investment in GF’s New York manufacturing capabilities will spur regional economic development and build upon the company’s longstanding and highly positive impact on the Capital region, and its investments here. This funding will further strengthen the vital partnership between SUNY and GF, allowing more SUNY students to gain experiential learning through apprenticeships and internships, and making New York the national model for education and workforce development in the semiconductor industry,”said State University of New York Chancellor John B. King, Jr.
“The first and largest 200mm semiconductor manufacturing facility of its kind in the U.S., GF’s Vermont fab is a cornerstone of the state’s economy and a key partner for the University of Vermont’s work as a national research university. Through collaborative programs with UVM and other institutions in Vermont, it is a place where so many young people in our region find their future. CHIPS funding will help ensure the commercial viability of this site for years to come and enable GF and UVM to build upon our recent EDA Tech Hub designation to create internships, apprenticeships, workforce development programs, and advanced research initiatives in the Green Mountain State. We applaud this federal investment in GF and the entire Vermont community,” said Kirk Dombrowski, Vice President for Research and Economic Development at UVM.
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GlobalFoundries Inc. (GF) announced preliminary financial results for the third quarter ended September 30, 2023.
Key Third Quarter Financial Highlights
- Revenue of $1,852 million.
- Gross margin of 28.6% and adjusted gross margin of 29.2%.
- Operating margin of 14.1% and adjusted operating margin of 17.4%.
- Net income of $249 million and adjusted net income of $308 million.
- Adjusted EBITDA of $667 million.
- Cash, cash equivalents and marketable securities of $3.4 billion.
“In the third quarter, GF’s dedicated teams across the world delivered financial results at the upper end of the guidance ranges we provided in our August earnings release,” said Dr. Thomas Caulfield, president and CEO of GF. “Although the global economic and geopolitical landscape remains uncertain, we are collaborating closely with our customers to support their efforts to reduce inventory levels, while growing long-term partnerships to drive foundry innovation and differentiation across essential end-markets.”
Recent Business Highlights
- The U.S. Department of Defense awarded GF a new 10-year contract for a supply of securely manufactured, U.S.-made semiconductors for use across a wide range of critical aerospace and defense applications.
- GF expanded its world-class global operations with official openings at its fabrication plant in Singapore and new operations support facility in Penang, Malaysia, creating a total of 1,300 high-value jobs.
- GF announced its most advanced RF technology, 9SW RFSOI, that will offer significant improvements in performance and integration for 5G and wireless communication applications.
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GlobalFoundries has been awarded $35 million in federal funding from the U.S. government to accelerate the manufacturing of GF’s differentiated gallium nitride (GaN) on silicon semiconductors at its facility in Essex Junction, Vermont. This funding brings GF closer to large-scale production of GaN chips, which are unique in their ability to handle high voltages and temperatures.
These chips are positioned to enable game-changing performance and efficiency in 5G and 6G cellular communications for infrastructure and handsets, automotive and industrial Internet of things (IoT), as well as power grids and other critical infrastructure.
With the new $35 million in funding, awarded by the Department of Defense’s Trusted Access Program Office (TAPO), GF plans to purchase additional tools to expand development and prototyping capabilities, moving closer to at-scale 200mm GaN-on-silicon semiconductor manufacturing.
As part of the investment, GF plans to implement new capabilities for reducing the exposure of GF and its customers to supply chain constraints of gallium, while improving the speed of development, assurance of supply and competitiveness of U.S-made GaN chips.
The funding builds on years of collaboration with the U.S. government – including $40 million in support from 2020-2022 – that leverages the talent of GF’s Vermont team and their 200mm semiconductor manufacturing experience, and applies it to GaN-on-silicon manufacturing. 200mm is state-of-the-art for GaN chip technology.
“Vermont is a leader in semiconductor innovation. This federal funding is welcome news, and will solidify our state’s position as a leader at the forefront of manufacturing next-generation chips,” said Senator Peter Welch. “It’s critical we support investment in this industry here in Vermont and in the U.S. – both for our local economic growth and for our national security. I look forward to continuing to fight for our domestic semiconductor and chip manufacturers in the Senate.”
“This strategic investment continues to strengthen our domestic ecosystem of critical dual-use commercial technologies, ensuring they’re readily available and secure for DoD utilization. In concert with key partners, we’re proactively shaping the future of our defense systems,” said The Honorable Christopher J. Lowman, Assistant Secretary of Defense for Sustainment.
“GaN on silicon is an ideal technology for high performance radio frequency, high voltage power switching and control applications for emerging markets, and it’s important for 6G wireless communications, industrial IoT, and electric vehicles,” said Dr. Thomas Caulfield, president and CEO of GF.
“GF has a longstanding partnership with the U.S. government, and this funding is critical to move GaN on silicon chips closer to volume production. These chips will enable our customers to realize bold new designs that push the envelope of energy efficiency and performance of critical technologies we rely on every day.”
GF’s facility in Essex Junction, Vermont, near Burlington, was among the first major semiconductor manufacturing sites in the United States. Today around 1,800 GF employees work at the site. Built on GF’s differentiated technologies, these GF-made chips are used in smartphones, automobiles, and communications infrastructure applications around the world.
The facility is a DMEA accredited Trusted Foundry and manufactures secure chips in partnership with the U.S. Department of Defense, for use in some of the nation’s most sensitive aerospace and defense systems.
Original – GlobalFoundries
