GlobalFoundries sinks into the red with US$730 million Q4 loss due to impairment charge
The semiconductor manufacturer announced top leadership changes last week
GLOBALFOUNDRIES, which operates a wafer plant in Singapore, sank into the red with a net loss of US$730 million for its fourth quarter ended Dec 31, 2024, compared with a net profit of US$277 million in the previous corresponding period.
The US chipmaker is listed on the Nasdaq exchange.
In Q4, the semiconductor manufacturer recorded a US$935 million impairment charge related to legacy production capacity at its facility in Malta, New York.
The company undertook this action to diversify its manufacturing technology road map, it said in a statement announcing the results on Tuesday (Feb 11).
On an adjusted basis, net income for Q4 fell 28.1 per cent to US$256 million, from US$356 million the previous year.
Loss per share stood at US$1.32 for the three-month period, compared with earnings per share of US$0.50 the year before.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Net revenue for Q4 nudged down 1.3 per cent to US$1.83 billion, from US$1.85 billion.
For the full year ended Dec 31, 2024, the company reported a net loss of US$262 million, compared with net income of US$1 billion in the corresponding year-ago period.
Adjusted full-year net income fell 30 per cent to US$870 million, compared with US$1.3 billion previously.
Chief executive officer and president Dr Thomas Caulfield said: “As we look to 2025, we are encouraged by our strong design win momentum across our end-markets and product portfolio, as we position GlobalFoundries for a growth year.”
That said, the chipmaker expects Q1 revenue of between US$1.55 billion and US$1.6 billion, lower than analysts’ expectations of US$1.66 billion, on the potential impact of US President Donald Trump’s tariffs on steel and aluminium imports.
Top leadership changes
Last week, GlobalFoundries announced top leadership changes. Dr Caulfield will step down from his post as chief executive and be appointed executive chairman of the board.
He will take over from current board executive chairman Ahmed Yahia, who will step down after more than a decade in the position.
Current chief operating officer (COO) Tim Breen will succeed Dr Caulfield as chief executive. He has been with the manufacturer since 2018.
Meanwhile, chief business officer Niels Anderskouv will be appointed as president and COO.
All new appointments take effect from Apr 28, 2025.
Copyright SPH Media. All rights reserved.
