Due to a sharp focus on wafer capacity for end-market applications, GlobalFoundries experienced a major earning hike for the second quarter of 2022. As per the recently released report, the company’s net revenue increased by 23% YoY, standing at $1.99 billion. Factors driving such a hike are the souring average selling price (ASP) and escalated wafer shipments.
Segment-wise details are illustrated above, showing consistent growth in revenue for five consecutive quarters. Although Smart mobile devices revenue dropped marginally, it remains the highest revenue-generating segment for GlobalFoundries.
Due to factors like better fixed cost absorption, higher ASP and an improved blend, the adjusted gross margin saw a 12% increase YoY and stood at 28%.
Given the delivery delays of wafer fab equipment, the report estimated that this year’s total gross Capex will not touch $4 billion. In H1 2022, 65% of the total wafer shipments and 90% of design wins were single-sourced. Moreover, single-source revenue in H1 2022 grew at 37% YoY, making it the highest revenue-generating sector.
It is interesting to note that in 2022 alone, the company has secured close to $6-billion incremental new LTAs with customers, with all being fully single-source businesses.
For 2022, the company hopes for wafer shipments of around 2.6 million. And for Q3 2022, the aim is to achieve 20% YoY in revenue, reaching $2.035 billion-$2.065 billion.
GlobalFoundries will enhance its market share and margins by entering new geographies and capturing a broader customer base.