Shares of GlobalFoundries Inc. closed more than 6% higher today after the chipmaker reported mixed financial results for its fourth quarter.

GlobalFoundries makes semiconductors for other companies based on customer-provided designs. It produces processors as well as auxiliary chips such as RF front-end modules, which are used to provide wireless connectivity for mobile devices. GlobalFoundries manufactures its products using legacy processes that are several generations behind the latest technology.

The chipmaker ended the fourth quarter with sales of $1.83 billion, slightly less than the $1.85 billion it reported a year earlier. That missed the Zacks consensus estimate by under 1%. However, GlobalFoundries topped the midrange of its own guidance. 

The revenue decline was mainly the result of a slowdown in the company’s mobile chip business, which accounts for about 40% of its top line. The business saw sales drop 15% year-over-year, to $738 million. GlobalFoundries supplies handset makers with 5G and Wi-Fi modules as well as NFC chips, which are used to power in-store payment apps. 

The company’s other core revenue segments almost all logged double-digit growth. GlobalFoundries’ communications infrastructure and data center business, which makes chips for optical networking equipment, saw sales climb by 28%. Automobile revenue jumped 62% year-over-year to $414 million. That demand boosted the company’s chip shipments by 8% in the fourth quarter to 595,000 300-millimeter wafers. 

GlobalFoundries generated adjusted net income of $256 million, which translated into adjusted earnings of 46 cents per share. The consensus forecast was 44 cents.

For the current quarter, GlobalFoundries is projecting adjusted earnings of 24 to 34 cents, which is in line with analyst expectations. Its sales forecast of $1.55 billion and $1.6 billion missed the consensus estimate. Nevertheless, the company is optimistic about the rest of 2025. 

“As we look to 2025, we are encouraged by our strong design win momentum across our end markets and product portfolio as we position GF for a growth year,” said Chief Executive Officer Thomas Caulfield.

GlobalFoundries’ fourth-quarter design wins included a deal with Lightmatter Inc., a well-funded silicon photonics startup. It sells an interconnect called Passage that transmits data between a processor’s chiplets in the form of light to boost throughput. Under an agreement announced in November, Lightmatter will rely on GlobalFoundries to mass-produce Passage.

GlobalFoundries is actively prioritizing the silicon photonics market as part of its growth efforts. Last month, the company announced plans to build an advanced chip packaging and photonics center on the site of its New York fab complex. The facility will assemble, test and package photonic chips for customers in multiple industries. 

Image: GlobalFoundries