Challenging 2024 hits GlobalFoundries

Amid board changes and speculation about Tom Caulfield taking over at Intel, GlobalFoundries has posted a significant fall in revenue and profits for 2024.

The foundry saw revenue of $6.750 billion, down 9% from $7.39bn in 2023, with a net loss of $262m, down from a profit of $1.1bn last year.

“2024 presented a unique set of challenges for our industry, but thanks to our focus on operational excellence, we generated over $1 billion of free cash flow,” said Caulfield in his last results as President and CEO of GlobalFoundries.  “As we look to 2025, we are encouraged by our strong design win momentum across our end markets and product portfolio as we position GF for a growth year.”

• Farewell to the US CHIPS Act

The fourth quarter of 2024 saw GF record a $935 million impairment charge on the legacy investments in production capacity at its facility in Malta, New York. This is part of its diversification of its long-term manufacturing technology platform roadmap in Malta. However this doesn’t cover the significant drop in profits for the year with Q4 revenue was $1.830bn and a net loss of $729m. The company did however settle its decade long legal battle with IBM.

GlobalFoundries is relying on the US CHIPS Act for funding the expansion at Malta where it is developing an advanced packaging and photonics centre, as well as expanding its gallium nitride capacity at its fab in Burlington, Vermont.