- Revenue was driven by growth in the company’s Automotive, Communications Infrastructure and Data Center, and Home and Industrial IoT segments.
- Utilization of manufacturing capacity to diversify footprint in growing segments will minimize the impact on revenues from uncertainties.
- ASP is likely to decline by mid-single digits in 2025 due to product mix.
- The Automotive, and Communications Infrastructure and Data Center segments will drive the revenue growth in 2025.
GlobalFoundries’ (GF) revenue grew 2% YoY in Q1 2025 to reach $1.59 billion, driven by increased contribution from the company’s Communications Infrastructure and Data Centre, Home and Industrial IoT, and Automotive segments. Q2 2025 is expected to report a modest growth in revenue. The impact of tariffs in 2025 is projected to be around $20 million, as GF has a diversified supply chain and fabs with a broad set of suppliers, which will help mitigate much of the tariff impact.
Commenting on GF’s manufacturing scale and diversification, COO Timothy Breen said, “Achieving manufacturing scale and technology diversity across our footprint has been a multi-year strategy to invest in capacity with differentiated features. To that end, we have deployed over $7 billion into our US, Germany and Singapore facilities since 2021.”
Counterpoint Senior Analyst Ashwath Rao said, “GF’s diversified supply chain, broad set of suppliers at the fabs and manufacturing footprint will help keep the tariff impact on revenue minimal compared to peers as the company provides options for customers in case of macro uncertainties. Enabling customers to source globally and locally will help GF facilities to remain fully utilized, driving revenue growth in the long term. Cost improvements due to the manufacturing footprint, both in terms of scale and diversification, in addition to a broad and growing portfolio of differentiated solutions across segments, provide GF a leverage for revenue growth and improved gross margins in the longer term.”
On the tariff front, Breen said, “The direct and indirect impacts of trade policy and the broader economic climate that this results in still remain to be seen. However, our first quarter results demonstrate consistent execution and financial resilience. We will monitor the situation closely and take actions within our control to navigate the uncertain macro environment. However, our long-term growth opportunities and financial foundations remain strong.”
Counterpoint Research Analyst Akash Jatwala said, “The tariff situation is still unfolding and presents certain uncertainties. GF, with its diversified manufacturing base, can avert the situation and serve its clients effectively. GF can look to increase capacity at its existing facilities across the US to serve domestic clients.”

Quarterly highlights
- GF’s revenue grew by 2% YoY in Q1 2025, driven mostly by the Communications Infrastructure and Data Center, and Automotive segments, and dragged down by the Smart Mobile Devices segment due to a reduction in underutilization payments.
- GF shipped 540,000 wafers (300mm Equivalent) in Q1 2025.
- Automotive revenue grew 16% YoY due to increasing silicon content in vehicles and new design wins for GF’s products at key OEMs. These new design wins are expected to support increased YoY revenue growth in the coming period.
- Growth in the Communications Infrastructure and Data Center segment was led by new design wins and connectivity solutions for data centers.
- ASP per wafer and gross margin were down modestly YoY due to the product mix shift and a significant YoY decline in underutilization payment.
Key partnerships
- GF entered a strategic partnership with indie Semiconductor for GF’s 22FDX platform, targeting radar applications for advanced driver assistance systems and adjacent industrial applications.
- Bosch launched its next-generation single-chip radar sensor, which is based on GF's 22FDX platform for assisted and automated driving.
- Ayar Labs unveiled the industry’s first Universal Chiplet Interconnect express (UCIe) optical interconnect chiplet to maximize AI infrastructure performance and efficiency, using GF’s photonics platform.

Segment-wise updates
Outlook for 2025
- The Automotive segment is expected to report double-digit YoY growth in 2025 on account of increasing market share and newer design wins.
- The Communications Infrastructure and Data Center segment is expected to report growth in 2025, driven by diversified offerings of differentiated products.
- The Home and Industrial IoT, and Smart Mobile Devices segments are expected to see flat growth in 2025.
- ASP is likely to decline by mid-single digits in 2025 due to product mix.
- Gross margin will improve to 30% in 2025 on account of better utilization, roll-off of depreciation cost, and structural cost improvement due to diversified manufacturing footprint and ramp-up of differentiated product lines.
- Although challenges persist in certain segments due to tariff uncertainties and global macroeconomic situations, the automotive and data center segments will help revenue growth in 2025.
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