GlobalFoundries (GF) delivered fourth-quarter and full-year 2025 results at the high end of its guidance, supported by rising demand for data center and AI-related technologies. The company is strengthening its position as a provider of essential chips while expanding its silicon photonics and automotive businesses.
GlobalFoundries Q4 and full-year 2025 results
GlobalFoundries reported Q4 2025 revenue of $1.83 billion, flat year-over-year but up 8 percent sequentially.
Full-year 2025 revenue reached $6.791 billion, a modest 0.6 percent increase compared with $6.75 billion in 2024.
Profitability improved significantly. Gross margin rose to 29 percent in Q4, an increase of 360 basis points year-over-year, driven by product mix improvements and cost discipline.
Communications and AI demand power growth
GlobalFoundries’ “essential chip” strategy produced mixed performance across its end markets, with AI infrastructure emerging as the strongest growth driver.
Communications infrastructure and data center surge
The Communications Infrastructure and Data Center segment was the standout performer. Revenue jumped 32 percent year-over-year to $225 million in Q4. The growth was fueled by rapid adoption of silicon photonics, with annual revenue from this business doubling to more than $200 million in 2025.
Automotive growth accelerates
Automotive revenue reached $427 million in Q4, up 3 percent year-over-year. For the full year, automotive revenue increased more than 36 percent as GlobalFoundries gained share in the software-defined vehicle market through partnerships with Continental and Navitas. In 2025, GlobalFoundries secured over 50 percent more design wins in Automotive compared to the year prior.
Smart mobile devices decline amid market maturity
The smart mobile devices segment declined 11 percent year-over-year to $657 million due to market maturation and adjustments in underutilization payments. However, the company reported strong design wins for next-generation RF front-end modules. GlobalFoundries secured a key design win on its UX platform for next-gen imaging in mobile phones and action cameras, with an estimated lifetime revenue of over $500 million.
Home and industrial IoT remains resilient
The Home and Industrial IoT segment showed resilience in areas such as Wi-Fi 7 and MedTech. The segment recorded a 11 percent decline to $303 million due to lingering consumer inventory corrections.
GlobalFoundries pivots toward AI and technology solutions
The company is transforming into a holistic technology solutions provider focused on AI, connectivity and supply chain resilience.
Silicon photonics and Physical AI
GlobalFoundries is positioning itself as a leader in Physical AI and data center interconnect technologies. The company expects its silicon photonics business to nearly double again in 2026.
Strategic acquisitions expand capabilities
In late 2025 and early 2026, GlobalFoundries acquired Infinilink, a high-speed connectivity company, and Synopsys’ processor IP business to strengthen design capabilities and product differentiation.
Geographic diversification and supply chain resilience
GlobalFoundries continues to pursue its China-for-China strategy while expanding manufacturing in the United States and Europe. This approach supports customers seeking diversified and resilient semiconductor supply chains.
Capital investments and European expansion
GlobalFoundries invested approximately $700 million in net capital expenditures during 2025, after accounting for government grants.
A major highlight is Project SPRINT in Dresden, Germany, a multi-billion euro expansion supported by the European Chips Act. The initiative will significantly expand 300mm wafer capacity for automotive and IoT applications.
AI infrastructure reshapes GlobalFoundries growth outlook
GlobalFoundries’ results underscore how AI, data center connectivity and automotive electrification are reshaping semiconductor demand. With strong momentum in silicon photonics and strategic investments in capacity and acquisitions, the company is positioning itself for continued growth in the AI-driven semiconductor market.
BABURAJAN KIZHAKEDATH
