GlobalFoundries Inc., a leading semiconductor foundry, reported a decrease in net revenue for both the three and nine months ended September 30, 2024, compared to the same periods in 2023. The company's financial results, filed with the SEC, showed a 6.1% drop in quarterly revenue and an 11.2% decrease for the nine-month period. The decline was attributed to lower wafer shipment volumes due to elevated inventory levels among customers and macroeconomic uncertainties. Despite a modest quarterly revenue improvement in 2024, demand remains subdued compared to 2022 and 2023. GlobalFoundries also renegotiated certain long-term agreements with customers to reflect lower volume commitments. The company's cost of revenue saw a slight increase for the quarter but decreased for the nine-month period, with gross margins shrinking...Show More

GlobalFoundries Inc., a leading semiconductor foundry, reported a decrease in net revenue for both the three and nine months ended September 30, 2024, compared to the same periods in 2023. The company's financial results, filed with the SEC, showed a 6.1% drop in quarterly revenue and an 11.2% decrease for the nine-month period. The decline was attributed to lower wafer shipment volumes due to elevated inventory levels among customers and macroeconomic uncertainties. Despite a modest quarterly revenue improvement in 2024, demand remains subdued compared to 2022 and 2023. GlobalFoundries also renegotiated certain long-term agreements with customers to reflect lower volume commitments. The company's cost of revenue saw a slight increase for the quarter but decreased for the nine-month period, with gross margins shrinking due to reduced factory utilization and fixed cost absorption. Research and development expenses rose, reflecting continued investment in technology, while selling, general, and administrative expenses decreased due to tax credits and lower withholding tax expenses. The company also reported a decrease in restructuring charges. GlobalFoundries' finance income improved, driven by higher interest income from marketable securities and money market funds. The company's liquidity remains strong, with $4.3 billion in cash, cash equivalents, and marketable securities as of September 30, 2024, and an undrawn $1.0 billion revolving credit facility. GlobalFoundries expects to meet its capital requirements for the next 12 months and beyond.