Copyright Benzinga
GlobalFoundries Inc. (NASDAQ:GFS) announced a technology licensing deal with Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) to boost the development of advanced Gallium Nitride (GaN) chips for data centers, industrial systems, and electric vehicles. The agreement gives GlobalFoundries access to Taiwan Semiconductor’s 650V and 80V GaN technology and establishes U.S.-based GaN manufacturing capacity to serve global customers. As traditional silicon CMOS approaches their performance limits, GlobalFoundries is expanding into GaN power solutions that offer higher efficiency, greater power density, and smaller footprints for advanced power systems. Also Read: Taiwan Semiconductor Rallies On Big October Sales And Growing Nvidia Demand The company is building a full GaN portfolio targeting applications in EVs, renewable energy, and fast-charging electronics, with a strong focus on reliability and performance across process, device, and system integration. GlobalFoundries will qualify the newly licensed GaN technology at its Burlington, Vermont facility, leveraging its experience in high-voltage GaN-on-silicon manufacturing to accelerate production. The company expects development to start in early 2026, with volume production following later that year. Financial Performance And Market Headwinds GlobalFoundries stock tanked 19% year-to-date due to limited artificial intelligence exposure, weak outlook in the mobile device sector and an abrupt CFO departure. GlobalFoundries reported fiscal second-quarter 2025 results that topped Wall Street expectations but issued softer guidance, sending its shares lower by over 7%. Revenue rose 3% year-over-year to $1.69 billion, slightly above estimates, while adjusted EPS of 42 cents beat the expected 35 cents. Automotive sales surged 36% to $368 million, and communications infrastructure and data center revenue climbed 11% to $171 million, offsetting a 10% decline in smart mobile device revenue. CEO Tim Breen said growth in automotive and datacenter demand drove solid performance, while GlobalFoundries continues to strengthen customer partnerships and expand strategically through initiatives like its planned MIPS acquisition and China-for-China foundry collaboration. For the third quarter, GlobalFoundries guided revenue between $1.65 billion and $1.70 billion, below analyst expectations of $1.77 billion, with projected adjusted EPS between $0.33 and $0.43. Leadership Change On October 28, GlobalFoundries announced the immediate resignation of its CFO, John Hollister. Hollister resigned for personal reasons, effective immediately. The company tapped Senior Vice President Sam Franklin as the interim CFO while it searches for a permanent replacement. Price Actions: GFS stock was trading higher by 1.29% to $34.52 at last check Monday. TSM was up 2.82%. Read Next: Nvidia, AMD Lead Semiconductor Rally After Taiwan Semiconductor’s Strong October Sales Photo by JHVEPhoto via Shutterstock
