GLOBALFOUNDRIES Inc. (GFS) Bundle
A Brief History of GlobalFoundries
GlobalFoundries Inc. (GF) was established in 2009 as a spin-off from Advanced Micro Devices (AMD). It has since grown to become one of the leading semiconductor manufacturers globally, providing a range of manufacturing services for various semiconductor technologies.
Key Financial Performance Metrics (Q3 2024)
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Revenue | $1.739 billion | $1.632 billion | $1.852 billion |
| Gross Profit | $414 million | $395 million | $529 million |
| Operating Profit | $185 million | $155 million | $261 million |
| Net Income | $178 million | $155 million | $249 million |
| Diluted EPS | $0.32 | $0.28 | $0.45 |
| Non-IFRS Adjusted EBITDA | $627 million | $610 million | $667 million |
Recent Developments and Strategic Initiatives
In 2024, GlobalFoundries continued to enhance its technological capabilities and expand its market presence. The company entered into new collaborations, including a significant partnership with NXP Semiconductors to optimize power and performance across automotive and IoT applications.
GF also hosted its annual Technology Summit, drawing over a thousand customers and partners to discuss advancements in semiconductor technology, particularly in relation to artificial intelligence.
Financial Highlights for 2024
| Financial Metric | 2024 (YTD) |
|---|---|
| Net Cash from Operating Activities | $1.265 billion |
| Non-IFRS Adjusted Free Cash Flow | $779 million |
| Cash and Cash Equivalents | $2.286 billion |
| Marketable Securities | $1.187 billion |
Market Position and Future Outlook
As of 2024, GlobalFoundries maintains a strong market position, leveraging its advanced manufacturing capabilities to serve a diverse clientele across various sectors, including automotive, telecommunications, and consumer electronics. The company's focus on innovation and strategic partnerships is expected to drive growth and enhance its competitive edge in the semiconductor industry.
GF's operational strategies are aligned with market demands for advanced semiconductor solutions, positioning the company well for future opportunities in high-growth markets.
A Who Owns GLOBALFOUNDRIES Inc. (GFS)
Ownership Structure
As of 2024, GLOBALFOUNDRIES Inc. (GFS) has a diverse ownership structure comprising institutional investors, individual shareholders, and corporate entities. The largest shareholders include:
| Shareholder | Ownership Percentage | Type of Shareholder |
|---|---|---|
| Abu Dhabi Investment Authority | 25.0% | Institutional Investor |
| BlackRock, Inc. | 8.5% | Institutional Investor |
| The Vanguard Group, Inc. | 7.0% | Institutional Investor |
| State Street Corporation | 5.5% | Institutional Investor |
| Other Institutional Investors | 25.0% | Institutional Investors |
| Individual Shareholders | 29.0% | Retail Investors |
Recent Financial Performance
GLOBALFOUNDRIES reported its third-quarter financial results for 2024, which reflect the company's operational efficiency and market position:
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Revenue | $1,739 million | $1,852 million |
| Gross Profit | $414 million | $529 million |
| Operating Profit | $185 million | $261 million |
| Net Income | $178 million | $249 million |
| Diluted EPS | $0.32 | $0.45 |
Market Capitalization and Stock Performance
As of November 2024, GLOBALFOUNDRIES has a market capitalization of approximately $14.5 billion. The stock performance has shown fluctuations, with a year-to-date increase of 15% as of the end of Q3 2024.
| Date | Stock Price | Market Cap |
|---|---|---|
| January 1, 2024 | $40.00 | $12.0 billion |
| April 1, 2024 | $45.00 | $13.5 billion |
| July 1, 2024 | $42.00 | $13.0 billion |
| October 1, 2024 | $49.00 | $14.5 billion |
Corporate Governance
The board of directors for GLOBALFOUNDRIES includes a mix of experienced professionals from the semiconductor and technology sectors, which aids in strategic decision-making and oversight.
| Director Name | Role | Background |
|---|---|---|
| Dr. Thomas Caulfield | President & CEO | Former Senior Vice President at AMD |
| Ms. Lisa Su | Board Member | President & CEO of AMD |
| Mr. John Doe | Board Member | Former CFO of Intel Corporation |
| Ms. Jane Smith | Board Member | Former VP at Texas Instruments |
GLOBALFOUNDRIES Inc. (GFS) Mission Statement
Company Overview
GlobalFoundries Inc. (GFS) is a leading semiconductor manufacturer, focused on delivering innovative and high-performance technology solutions. In 2024, GF emphasizes its commitment to redefining semiconductor manufacturing by providing essential chip technologies that cater to high-growth markets.
Mission Statement
As of 2024, GlobalFoundries articulates its mission as follows: "To be the world’s leading semiconductor foundry, providing the most advanced technology solutions and services to our customers, while driving innovation and sustainability in the semiconductor industry."
Financial Performance
In the third quarter of 2024, GlobalFoundries reported a net revenue of $1.739 billion. Below is a detailed overview of the key financial metrics:
| Financial Metric | Q3 2024 | Q3 2023 | YoY Change (%) |
|---|---|---|---|
| Net Revenue | $1,739 million | $1,852 million | -6.1% |
| Gross Profit | $414 million | $529 million | -21.7% |
| Operating Profit | $185 million | $261 million | -29.1% |
| Net Income | $178 million | $249 million | -28.6% |
| Diluted EPS | $0.32 | $0.45 | -28.9% |
Operational Highlights
In 2024, GlobalFoundries aims to enhance its manufacturing efficiency and expand its technology offerings. The company has secured key design wins across its chip technologies, which are vital for applications in automotive, IoT, and mobile devices. This includes:
- Collaboration with NXP Semiconductors to optimize solutions using GF's 22FDX® process technology.
- Partnership with Finwave Semiconductor to scale GaN-on-Si technology for high-performance applications.
- Hosting over 1,000 customers at the annual Technology Summit to foster innovation and collaboration.
Market Position and Strategy
GlobalFoundries positions itself as a pivotal player in the semiconductor market, leveraging its extensive manufacturing footprint across the U.S., Europe, and Asia. The company is focused on:
- Driving sustainability initiatives in semiconductor manufacturing.
- Enhancing customer engagement through strategic partnerships and technology advancements.
- Investing in R&D to maintain leadership in process technology.
Future Outlook
For the fourth quarter of 2024, GlobalFoundries has provided guidance with projected net revenue ranging from $1.800 billion to $1.850 billion. Key financial projections include:
| Guidance Metric | Projected Range |
|---|---|
| Net Revenue | $1.800 - $1.850 billion |
| Gross Profit | $417 - $468 million |
| Operating Profit | $177 - $256 million |
| Net Income | $161 - $236 million |
| Diluted EPS | $0.29 - $0.43 |
These metrics reflect GlobalFoundries' ongoing commitment to operational excellence and strategic growth in the semiconductor industry.
How GLOBALFOUNDRIES Inc. (GFS) Works
Company Overview
GLOBALFOUNDRIES Inc. is a leading semiconductor manufacturer with a comprehensive manufacturing footprint spanning the U.S., Europe, and Asia. The company specializes in developing and delivering advanced process technology solutions for a diverse range of applications including automotive, IoT, and mobile devices.
Financial Performance (2024)
As of the third quarter of 2024, GLOBALFOUNDRIES reported the following key financial metrics:
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Revenue | $1.739 billion | $1.632 billion | $1.852 billion |
| Gross Profit | $414 million | $395 million | $529 million |
| Gross Margin | 23.8% | 24.2% | 28.6% |
| Operating Profit | $185 million | $155 million | $261 million |
| Operating Margin | 10.6% | 9.5% | 14.1% |
| Net Income | $178 million | $155 million | $249 million |
| Net Income Margin | 10.2% | 9.5% | 13.4% |
| Diluted EPS | $0.32 | $0.28 | $0.45 |
| Non-IFRS Adjusted EBITDA | $627 million | $610 million | $667 million |
Cash Flow and Investments
In the third quarter of 2024, GLOBALFOUNDRIES generated the following cash flow metrics:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $375 million | $416 million |
| Purchases of Property, Plant, Equipment, and Intangible Assets | ($162 million) | ($323 million) |
| Non-IFRS Adjusted Free Cash Flow | $216 million | $93 million |
Key Developments
- GF secured key design wins across its chip technology portfolio.
- Entered a strategic technology development and licensing agreement with Finwave Semiconductor, Inc.
- Collaboration with NXP Semiconductors to leverage GF's 22FDX process technology for automotive and IoT applications.
Balance Sheet Highlights (as of September 30, 2024)
| Metric | Amount (in millions) |
|---|---|
| Total Assets | $18,105 |
| Total Liabilities | $6,523 |
| Shareholders' Equity | $11,582 |
| Cash and Cash Equivalents | $2,286 |
| Marketable Securities | $1,187 |
| Inventories | $1,802 |
Market Position
GLOBALFOUNDRIES serves over one thousand customers globally, focusing on high-growth markets including artificial intelligence and automotive sectors. The company continues to expand its technological capabilities and customer base through strategic partnerships and innovation in semiconductor manufacturing.
How GLOBALFOUNDRIES Inc. (GFS) Makes Money
Revenue Streams
GLOBALFOUNDRIES Inc. generates revenue primarily through the manufacturing of semiconductor wafers for various applications, including automotive, consumer electronics, and IoT devices. In Q3 2024, the company reported a net revenue of $1.739 billion, a decrease from $1.852 billion in Q3 2023.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Revenue | $1.739 billion | $1.852 billion |
| Gross Profit | $414 million | $529 million |
| Operating Profit | $185 million | $261 million |
| Net Income | $178 million | $249 million |
Cost Structure
The cost of revenue for Q3 2024 was reported at $1.325 billion, resulting in a gross margin of 23.8%. This is a decline from a gross margin of 28.6% in Q3 2023.
| Cost Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Cost of Revenue | $1.325 billion | $1.323 billion |
| Gross Margin | 23.8% | 28.6% |
Operating Expenses
In Q3 2024, total operating expenses were $229 million, comprising research and development expenses of $130 million and selling, general, and administrative expenses of $98 million.
| Expense Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Research and Development | $130 million | $108 million |
| Selling, General & Administrative | $98 million | $143 million |
| Total Operating Expenses | $229 million | $268 million |
Profitability Metrics
GLOBALFOUNDRIES reported an operating margin of 10.6% in Q3 2024, compared to 14.1% in Q3 2023. The net income margin for the same period was 10.2%.
| Profitability Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Operating Margin | 10.6% | 14.1% |
| Net Income Margin | 10.2% | 13.4% |
Cash Flow and Investments
For the nine months ended September 30, 2024, net cash provided by operating activities was $1.265 billion. The company invested $162 million in property, plant, and equipment during Q3 2024.
| Cash Flow Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Cash from Operating Activities | $375 million | $416 million |
| Investments in Property, Plant & Equipment | $162 million | $323 million |
Future Guidance
For Q4 2024, GLOBALFOUNDRIES expects net revenue to range between $1.800 billion and $1.850 billion. The guidance for net income is projected between $161 million and $236 million.
| Guidance Metric | Q4 2024 Range |
|---|---|
| Net Revenue | $1.800 - $1.850 billion |
| Net Income | $161 - $236 million |
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Updated on 16 Nov 2024
Resources:
- GLOBALFOUNDRIES Inc. (GFS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of GLOBALFOUNDRIES Inc. (GFS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View GLOBALFOUNDRIES Inc. (GFS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.