GlobalFoundries posted a loss in the last quarter, with revenue down slightly

American company GlobalFoundries, although one of the five largest contract chip manufacturers in the world, has stalled in its technological development at the level of the 12-nm process technology, since the Arab investors who supported it did not want to invest in further progress. The fourth quarter of last year was not very successful for the company, since revenue fell slightly, and losses reached $ 729 million.

Image source: GlobalFounfries

Quarterly revenue fell 1% year-over-year to $1.83 billion, and the company described full-year 2024 as “presenting a unique set of challenges for the industry,” with annual revenue down 9% to $6.75 billion. The company formally ended the previous quarter with a net loss of $729 million, but this was caused by the need to write off $935 million in expenses for the expansion of production in New York State. Since this write-off was a one-time event, the company does not believe that such factors will affect its profits in the future. For the full year 2024, GlobalFoundries’ net loss amounted to $262 million.

Technically, GlobalFoundries increased its wafer processing volumes in the fourth quarter by 8% year-on-year to 595,000 units. It also failed to avoid operating losses, which amounted to $701 million. For the full year, its 300mm equivalent wafer processing volumes fell by 4% to 2.1 million units.

In the current quarter, the company expects to earn $1.55 to $1.6 billion, receive operating profit in the range of $94 to $167 million, and net profit in the amount of $78 to $142 million. This year, GlobalFoundries expects to develop its business, and according to the results of the previous year, it managed to generate more than $1.1 billion in free cash. The company considers participation in the government program for the production and packaging of chips in the United States to be an important guarantee of its well-being. A certain bet is also placed on developments in the field of silicon photonics.