GlobalFoundries Q1 Revenue Down 16% to $1.549B

On May 7, GlobalFoundries, a leading semiconductor foundry, released its preliminary financial results for the first quarter ending March 31, 2024. The company reported revenue of $1.549 billion, down 16% quarter-over-quarter and year-over-year. Gross profit was $393 million, down 25% from Q4 2023 and 24% compared to the previous year. Gross margin stood at 25.4%, a decrease from around 28% in the prior quarter. Net income was $134 million, down approximately half both quarter-over-quarter and year-over-year. The net profit margin was 8.7%, significantly lower than 15% in Q4 2023.

During the quarter, GlobalFoundries shipped 463,000 12-inch wafer equivalents, which represents a 9% decline year-over-year and a 16% decrease quarter-over-quarter.

Key highlights for the quarter include the U.S. Department of Commerce's plan to provide $1.5 billion in direct funding support to GlobalFoundries' facilities in New York and Vermont, as part of the CHIPS and Science Act. This investment aims to bolster secure capacity for critical markets such as automotive, aerospace, and defense. Additionally, the state of New York plans to provide over $600 million in funding for two projects in Malta, NY, under New York State Green CHIPS and other state incentives.

GlobalFoundries continues to prioritize sustainable operations and climate change mitigation, with two new long-term goals announced: achieving net-zero greenhouse gas emissions by 2050 and 100% carbon-neutral power. These goals align with the Paris Agreement and build on GlobalFoundries' 2021 commitment to carbon neutrality.