- Company name
- GlobalFoundries
- Sector
- Semiconductor foundry
- About
- GlobalFoundries makes chips that other companies design. It is a contract manufacturer, or foundry, and it focuses on mature and specialty process technologies rather than the most advanced nodes. Its factories are in Malta, New York, Burlington, Vermont, Dresden, Germany, and Singapore. Its chips go into smartphones, cars, industrial equipment, communications networks and data centers. It sells special technologies such as silicon photonics and silicon germanium for optical networking in AI data centers, and power, radio frequency and embedded memory chips. In 2026, it bought the ARC processor business of Synopsys and the integrated voltage regulator business of Photeon, which add processor designs and power technology to its offer. Revenue was $1.899 billion in Q3 2026, and it shipped 647,000 300mm-equivalent wafers.
- Thesis
- The market prices GlobalFoundries as a maker of mature chips with no lasting advantage. Many foundries, including ones in China, make chips on similar older processes, and this limits prices. Its gross margin was 28.3% in Q2 2026 and 30.1% in Q3 2026, low for a chip maker, and large capital spending uses much of its cash flow: adjusted free cash flow was negative $3 million in Q2 2026 and $136 million in Q3 2026. The new US-Japan fab project in New York and a $2 billion silicon interposer agreement with TSMC add chances for growth, but the first new fab is not expected to start until 2029 and interposer volume production not until 2028. For the gap to close, three things must be true. Revenue must keep growing, with Q4 2026 revenue near the $2,000 million guidance, as silicon photonics and other data center products grow. The non-IFRS gross margin must keep rising, from 31.4% in Q3 2026 toward the 31.5% guidance for Q4 2026 and above. Free cash flow must stay clearly positive after capital spending, so that the dividend, buybacks and new projects are funded from cash. The Q3 2026 report on November 4, 2026 passed its test: revenue rose 13% to $1,899 million, the non-IFRS gross margin was a record 31.4% and adjusted free cash flow was positive. The Q4 2026 report and the 2027 outlook in February 2027 are the next tests. If they pass, the gap can close over the next four to eight quarters. The main reason it may not close is price pressure from Chinese foundries, which would keep margins and returns low.
- Risks
- Foundries in China and other countries make chips on similar mature processes and compete on price. More capacity in the industry can lower prices and margins.
Chip manufacturing needs large capital spending. In Q2 2026, purchases of property, plant and equipment were $411 million and adjusted free cash flow was negative; in Q3 2026 they were $301 million. New fabs and the new interposer capacity for TSMC can raise spending before they add revenue.
Demand from smartphone, car and industrial customers changes with the economy and customer inventory. A downturn can lower factory use and margins.
The new fabs in New York depend on funding from Japan and agreements with the US government. Delays or changes in these agreements can change the value of the project.
- Balance sheet
- Cash: $3.2B
Debt: $1.1B
Net cash: $2.1B
Undrawn credit line: $1.5B, to August 2031
Debt due within 12 months: $99M
GlobalFoundries has more cash than debt. At September 30, 2026, cash and cash equivalents were $997 million and marketable securities were $1,258 million current and $957 million non-current, for about $3.2 billion. Debt was $1,136 million, of which $99 million was due within 12 months, plus lease obligations. On August 21, 2026, it signed a new $1.5 billion senior unsecured revolving credit facility to August 21, 2031, which requires consolidated leverage of no more than 4.0 times. In Q3 2026, cash from operations was $341 million, capital spending was $301 million, government grants gave $96 million and acquisitions used $46 million. It paid $66 million of dividends and bought back $100 million of shares. Total equity was $12.0 billion against $17.0 billion of total assets at September 30, 2026. The quarterly dividend is $0.12 per share. In September 2026, GlobalFoundries issued 9.9 million shares to the US government, with a $441 million non-cash charge.
As of Sep 30, 2026.
- Checkpoints
- Nov 4, 2026: Q3 2026 results: revenue growth and margin. Passed. Watch: Revenue near $1,885 million, a non-IFRS gross margin near 30.5% and positive adjusted free cash flow pass; revenue below the guidance range or a lower margin fails. Outcome: Revenue was $1,899 million, the non-IFRS gross margin was 31.4% and adjusted free cash flow was $136 million.
Dec 2026 (estimate): Groundbreaking of the first new fab in Malta. Pending. Watch: Groundbreaking in late 2026 with signed funding terms from Japan passes; a delay or unclear funding fails.
Feb 4, 2027 (estimate): Q4 2026 results and the 2027 outlook. Pending. Watch: Q4 revenue near the $2,000 million guidance and a 2027 outlook with revenue growth, a higher gross margin and positive free cash flow pass; flat revenue or a lower margin fails.
- Recent events
- Nov 4, 2026: GlobalFoundries reported Q3 2026 results. Revenue rose 13% to $1.899 billion, the gross margin rose to 30.1% and the non-IFRS gross margin reached a record 31.4%. The net loss was $270 million, or $0.49 per share, after a $441 million non-cash charge for the shares issued to the US government. Non-IFRS EPS was $0.53, and adjusted free cash flow was $136 million. GlobalFoundries bought back $100 million of shares. For Q4 2026, it guided revenue of $2,000 million plus or minus $25 million and non-IFRS EPS of $0.59 plus or minus $0.05. It also said that in October 2026 it signed a multi-year, $2 billion agreement with TSMC to make silicon interposers in Malta, New York, for TSMC's CoWoS advanced packaging, with volume production from the first half of 2028.
Oct 27, 2026: The Board approved a dividend of $0.12 per share, payable on January 14, 2027.
Oct 14, 2026: GlobalFoundries said it was selected as technology provider and operator for two new fabs at its Malta, New York, site under a US-Japan initiative with up to $21 billion of funding from Japan. The first fab, with about $10 billion of investment, is expected to start in 2029 and add about 900,000 300mm wafers of yearly capacity. GlobalFoundries also agreed with the US Department of Commerce to reallocate $955 million of its CHIPS Act award to silicon photonics, silicon germanium and advanced packaging.
Sep 3, 2026: GlobalFoundries agreed to issue 9,907,399 ordinary shares to the US Department of Commerce at $37.85 per share. The government agreed not to vote the shares except on certain matters, such as a merger.
Aug 21, 2026: GlobalFoundries signed a new $1.5 billion senior unsecured revolving credit facility that runs to August 21, 2031. It ended its old $1.0 billion facility, which had nothing drawn.
Aug 5, 2026: GlobalFoundries reported Q2 2026 results. Revenue rose 6% to $1.786 billion, gross margin rose to 28.3% and diluted EPS was $0.30, or $0.46 on a non-IFRS basis. Adjusted EBITDA was $587 million. For Q3 2026, it guided revenue of $1,885 million plus or minus $25 million and non-IFRS EPS of $0.51 plus or minus $0.05.
Jul 14, 2026: GlobalFoundries paid its first quarterly cash dividend, $0.12 per share.