Dana Point, CA – August 28, 2025
GlobalFoundries (NASDAQ: GFS), a leading semiconductor foundry, took center stage at Deutsche Bank’s 2025 Technology Conference on August 27, outlining its ambitious plans for expansion amid a complex geopolitical landscape. In a fireside chat moderated by Deutsche Bank semiconductor analyst Ross Seymour, GlobalFoundries CFO John Hollister emphasized the company’s focus on differentiated technology, strategic partnerships, and geographic diversification to capitalize on high-growth markets while navigating macroeconomic headwinds. The presentation, held at the Waldorf Astoria Dana Point, highlighted how U.S. subsidies like the CHIPS Act are fueling GlobalFoundries’ domestic investments, positioning it as a key player in reducing reliance on Asia-centric supply chains.
Hollister detailed the company’s robust market position, noting that 90% of its recent design wins are sole-sourced, underscoring the value of its specialized technologies in areas like 22nm FD-SOI (fully depleted silicon-on-insulator) and 40-55nm nodes. These platforms are particularly suited for power-efficient applications in automotive, communications infrastructure, and data centers—sectors driving GlobalFoundries’ growth. “We’re seeing mid-single-digit growth in automotive this year, and our silicon photonics business is on track to hit $200 million in revenue,” Hollister said, adding that satellite communications could reach $100 million. However, challenges persist in smart mobile devices and home/IoT segments due to inventory overhangs, though the company anticipates a strong fourth quarter to meet its full-year guidance.
A major theme was geopolitical strategy, with Hollister stressing the importance of expanding beyond China and Taiwan to mitigate risks from tariffs, subsidies, and supply chain disruptions. GlobalFoundries operates a unique global footprint, including flagship 300mm fabs in Malta, New York, and Dresden, Germany, alongside a 200mm facility in Burlington, Vermont. The company is enhancing these sites with advanced technologies, including plans to nearly double the Malta fab’s capacity and modernize Burlington. “Customers are increasingly prioritizing domestic sourcing, and we’re responding with greater technology diversity across our multifab strategy,” Hollister explained. This includes a “China for China” approach to serve local OEMs while bolstering North American and European operations.
The CHIPS Act plays a pivotal role in this expansion. GlobalFoundries recently refreshed its announcement for up to $16 billion in investments in North America over the next decade, focusing on capacity additions without equity funding. Hollister highlighted the enhanced 35% investment tax credit—up from 25%—as a “game-changer” for short-term growth, alongside potential grants. Capital expenditures are projected at around $700 million for the year, aiming for mid-single-digit percentages of total revenue to boost fab utilization to the low 80s and improve gross margins from 20-30% toward a long-term target of 40%.
Pricing remains stable, with occasional market-based adjustments, reflecting the company’s unit-driven model rather than aggressive pricing as a tailwind. Hollister noted longer-term engagements with customers, including multi-year agreements that provide better visibility than the short-lived long-term supply agreements (LTSAs) during the 2021-2022 chip shortage. Advanced packaging developments in Malta and Singapore were also spotlighted, enhancing the company’s offerings in AI and high-performance computing.
Seymour probed on the broader semiconductor themes, linking GlobalFoundries’ strategy to AI and geopolitics. “Semis have touched all kinds of angles—tariffs, subsidies, grants, equity investments,” he remarked, positioning the company as ideally suited to these dynamics. Hollister agreed, emphasizing strategic partnerships that drive sole-sourced wins and stable pricing on a like-for-like basis.
The session aligns with the conference’s focus on technology innovation, following presentations from AI-focused firms like CoreWeave. GlobalFoundries’ outlook reflects optimism tempered by caution: While automotive and data centers thrive, mobile and IoT recovery hinges on inventory normalization. Investors reacted positively, with shares up modestly post-presentation, buoyed by the reaffirmed guidance and CHIPS Act momentum.
As the semiconductor industry grapples with U.S.-China tensions and the push for reshoring, GlobalFoundries’ strategy exemplifies how foundries are adapting. “We’re leveraging our differentiated tech and global presence to meet customer needs in a resilient way,” Hollister concluded. For those seeking deeper insights, the full transcript is available on Investing.com, offering a comprehensive look at the company’s roadmap.