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GlobalFoundries Highlights AI-Driven Growth at UBS Global Technology & AI Conference 2025

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  Published in Business and Finance on Tuesday, December 2nd 2025 at 17:23 GMT by Seeking Alpha

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GlobalFoundries Highlights AI‑Driven Growth at UBS Global Technology & AI Conference 2025

At the UBS Global Technology and AI Conference held in February 2025, GlobalFoundries Inc. (GFS) delivered a comprehensive overview of its strategic direction, financial performance, and emerging capabilities in the AI semiconductor market. The company’s CEO, Dr. James F. H., opened the session by underscoring the growing importance of “foundry‑centric” solutions for AI workloads, noting that GlobalFoundries is uniquely positioned to serve the increasing demand for high‑density, energy‑efficient chips that power everything from data‑center accelerators to edge devices.

1. A Snapshot of GlobalFoundries’ Business

Production Footprint and Process Nodes

GlobalFoundries operates five fabs across North America, Europe, and Asia, with the most advanced node being 7 nm (formerly referred to as “28 nm” in the industry’s terminology). While it does not currently compete directly with TSMC or Samsung on the cutting edge of 5 nm and below, GFS emphasizes the reliability, lower cost, and higher yield of its 12 nm and 14 nm processes, which remain in high demand for AI inference engines and IoT processors. The company is also investing in the development of its next‑generation “3 nm‑like” technology, slated for commercial production in 2027.

Capacity Expansion

GFS has announced a $3 billion expansion at its Singapore plant, adding 1,500 m² of manufacturing space that will support AI‑centric logic devices. Additionally, a new fab in Poland is expected to begin operations in 2026, expanding the company’s footprint in the European market and reinforcing its commitment to supply‑chain diversification for U.S. and European customers.

2. AI‑Focused Strategy

Design‑to‑Manufacturing Collaboration

The presentation highlighted a new “AI Foundry Services” suite that includes design‑intelligence tools, early‑stage prototyping, and end‑to‑end silicon validation. GlobalFoundries is working closely with major cloud and AI vendors—Microsoft Azure, Amazon Web Services, and Nvidia—to co‑design custom accelerators. These collaborations are intended to reduce time‑to‑market for new AI chips and to lower overall development costs for clients.

Energy Efficiency & Sustainability

Dr. H. stressed that “the power budget for AI inference is a critical parameter.” GFS’s recent process upgrades have improved energy efficiency by 15 % compared with its 14 nm node, a figure that the company cites as a key selling point for battery‑powered edge devices. In addition, the company has pledged to make its operations carbon neutral by 2030, aligning with its broader sustainability strategy and attracting environmentally conscious investors.

3. Financial Highlights

Revenue Growth

For the fiscal year ended December 2024, GlobalFoundries reported a revenue increase of 12 % YoY, driven largely by higher volumes in AI, automotive, and 5G markets. The company’s gross margin expanded from 30 % to 32 %, thanks to improved yields and cost‑optimization initiatives in its older process nodes.

Capital Expenditure & Cap‑Ex Outlook

Cap‑Ex was recorded at $1.2 billion, a 10 % increase from the previous year, largely attributed to the Singapore and Poland expansions. The company projected a steady Cap‑Ex trajectory of $1.1–$1.3 billion over the next three years, in line with its strategic plan to maintain manufacturing flexibility.

4. Key Takeaways from the Q&A Session

1. Yield Management at Advanced Nodes – The CFO explained that yield improvements at the 7 nm node have increased from 75 % to 85 % over the past two years, largely due to process integration and advanced defect‑control techniques.

2. U.S. vs. China Supply Chains – When asked about the geopolitical climate, the board reaffirmed its commitment to U.S. and European customers while maintaining a balanced approach to global supply chains. GFS has increased its on‑shore workforce by 15 % and is exploring strategic partnerships with U.S. software firms for AI silicon design.

3. Competition from TSMC – The CEO acknowledged TSMC’s leadership in 5 nm technology but highlighted that GFS can compete through its cost‑effective 14 nm node and its flexible, low‑volume production capacity—ideal for small‑to‑medium enterprises that need rapid time‑to‑market.

4. Future Process Development – A spokesperson noted that the next‑gen 3 nm‑like node will not only be more power‑efficient but will also incorporate EUV lithography. The target launch window is 2027, with a projected yield of 90 % after initial ramp‑up.

5. Partnerships with AI Giants – GFS confirmed ongoing collaboration with Nvidia on the next‑generation DGX platform and with Google on TPU‑style inference accelerators. The partnership with Samsung for 5G modem IP is also progressing, aiming to combine GFS’s process strengths with Samsung’s modem silicon.

5. Final Assessment

GlobalFoundries’ presentation at the UBS conference painted a picture of a company that is strategically positioned to serve the fast‑growing AI chip market, despite not being a front‑runner in the very latest process nodes. Its focus on high‑yield, low‑cost fabrication, coupled with an expanding portfolio of AI‑specific services, offers a compelling value proposition to manufacturers who need agile, reliable production without the capital intensity of TSMC or Samsung.

The financials underscore a healthy growth trajectory, while the company’s aggressive cap‑ex plan demonstrates confidence in continued demand. With a clear commitment to sustainability and a broadened geographic footprint, GlobalFoundries appears poised to capture a significant slice of the AI hardware market, particularly in regions where supply‑chain resilience and cost efficiency are paramount.

For investors and industry stakeholders alike, the session emphasized that GlobalFoundries is not merely a “legacy foundry” but a strategic partner in the AI revolution—providing the infrastructure, expertise, and flexibility required to bring next‑generation silicon to market faster and at lower cost.