GLOBALFOUNDRIES Inc. (GFS): Business Model Canvas [Dec-2025 Updated]

You're digging into how GLOBALFOUNDRIES Inc. is actually making money now, especially after their big push into specialized manufacturing. Honestly, after two decades watching this sector, the shift they've made-moving away from pure volume to securing high-margin, differentiated platforms like Silicon Photonics and leveraging their US Trusted Foundry status-is the real story. We're talking about a company targeting a gross margin near 30% by the end of 2025, supported by massive CapEx around $700 million for the year. If you want to see exactly how their global footprint, key partnerships, and customer segments line up to support that aggressive profitability goal, check out the full Business Model Canvas breakdown below.

GLOBALFOUNDRIES Inc. (GFS) - Canvas Business Model: Key Partnerships

You're looking at the core alliances that keep GLOBALFOUNDRIES Inc. running and growing its specialized manufacturing base. These aren't just handshake deals; they are multi-billion dollar commitments that secure capacity and technology access for the next decade. Honestly, the partnership structure is what lets GLOBALFOUNDRIES compete outside the leading-edge race.

Government Funding and Support

Government backing is a massive part of the current capital expenditure plan, securing domestic and European supply chain resilience. GLOBALFOUNDRIES is leveraging significant commitments from both the US and European governments to fund major fab expansions and technology upgrades. Here's the quick math on the major public-private investments:

What this estimate hides is that the US CHIPS Act funding comes without an equity stake for the US government, which is a key differentiator from some other recipients. Also, the automotive sales for GLOBALFOUNDRIES were up 36% year-over-year in fiscal Q2 2025, reaching $368 million, showing the immediate impact of supply chain security efforts in that sector.

Long-Term Manufacturing Agreements with Major Customers

Securing volume commitments from major clients like AMD is crucial for justifying the massive capital investments. These agreements lock in revenue and guarantee capacity allocation for GLOBALFOUNDRIES' mature process nodes. For instance, the Wafer Supply Agreement (WSA) with AMD has been extended and amended.

• AMD expects to purchase approximately $2.1 billion of wafers from GLOBALFOUNDRIES between 2022 and 2025.
• The agreement secures supply through December 31, 2025.
• AMD sources 12 nm and 14 nm wafers, used in I/O dies for Ryzen and EPYC processors, and chipsets.

This arrangement mandates that GLOBALFOUNDRIES must guarantee AMD's supply above that of other customers, and AMD must buy the agreed-upon wafers, even if not immediately needed. It's a classic supply-security trade-off.

Strategic Technology License with TSMC for GaN Power Solutions

To rapidly build out its next-generation power portfolio, GLOBALFOUNDRIES entered a critical licensing deal with TSMC. This move accelerates their entry into high-efficiency Gallium Nitride (GaN) devices.

• Agreement signed on November 10, 2025, licensing TSMC's 650 V and 80 V GaN technology.
• The technology will be qualified at the Burlington, Vermont facility.
• Development is set to start in early 2026, with volume production following later that year.

This partnership is strategically important because TSMC is phasing out its own GaN foundry services by July 2027. This license directly targets high-growth areas like electric vehicles, data centers, and industrial power systems.

Ecosystem Collaboration and Automotive Focus

Beyond the major financial agreements, GLOBALFOUNDRIES maintains deep ecosystem ties. While specific financial details for an exclusive automotive partnership with Continental aren't public, the focus on automotive is clear, as seen in the 36% sales surge in that segment. The company also collaborates with IP vendors and design houses to ensure its process technologies are immediately usable for customer designs.

GLOBALFOUNDRIES has also been noted for acquiring IP portfolios, such as the GaN IP portfolio from Tagore, further solidifying its technology base. These collaborations help maintain the relevance of their mature nodes, which are often preferred for rugged, high-reliability applications in automotive and defense sectors where GLOBALFOUNDRIES is a Trusted Foundry for the US government.

GLOBALFOUNDRIES Inc. (GFS) - Canvas Business Model: Key Activities

You're looking at the core engine room of GLOBALFOUNDRIES Inc. (GFS), the set of actions they must perform exceptionally well to deliver their value proposition. This isn't just about running machines; it's about strategic technology development and global operational mastery. The numbers here show the scale of their commitment to staying relevant in essential, rather than just leading-edge, process nodes.

High-volume wafer fabrication across three continents (US, Germany, Singapore) is a defining activity. GLOBALFOUNDRIES Inc. is the only US-based pure-play foundry with this global manufacturing footprint. The scale of this operation is evident in their capacity expansion plans. For instance, the Dresden, Germany, site (Fab 1), which had a capacity of 300,000 wafers per year in 2024, is slated for an investment of €1.1 billion to push capacity past one million wafers per year by the end of 2028. In the US, construction on the new Fab 8.2 in Malta, New York, a 358,000-square-foot facility, began in 2025, with the goal of tripling the campus's production capacity to 1 million wafers per year over the next decade. Meanwhile, the Singapore expansion (Fab 7) involved a $4 billion investment to increase output by 30%.

The company's focus on differentiated technologies drives significant Research & Development (R&D) activity. GLOBALFOUNDRIES Inc. committed an additional $3 billion to R&D, bringing their total investment plan to $16 billion over the next 10-plus years. This R&D spend is specifically channeled into three key areas:

• Chip packaging technologies, including funding for the New York Advanced Packaging and Photonics Center.
• Silicon Photonics, which is targeted to become a $200 million business in 2025.
• Next-generation Gallium Nitride (GaN) technologies, particularly for electric vehicles and power applications.

Development in these specific platforms is directly translating into design wins. The FDX platform, or Fully Depleted Silicon on Insulator, is critical for low-power applications, with the Dresden fab specializing in 22FDX FD-SOI technology. To be fair, the success of these differentiated technologies is reflected in their customer capture rate; approximately 95% of GLOBALFOUNDRIES Inc.'s design wins year-to-date in 2025 were secured on a sole-source basis.

The activity of Advanced packaging and 3D heterogeneous integration development is central to supporting AI infrastructure needs. This area, along with silicon photonics and GaN, is a recipient of the $3 billion R&D allocation. The company's acquisition of Advanced Micro Foundry (AMF) in November 2025 further solidified its position, establishing GLOBALFOUNDRIES Inc. as the largest silicon photonics pure-play foundry by revenue. Furthermore, GLOBALFOUNDRIES Inc. entered a technology-licensing agreement with TSMC on November 10, 2025, specifically covering 650 V and 80 V GaN technology.

Managing the complex, geographically diverse supply chain to mitigate tariff risks is a constant operational focus. This is managed by maintaining a footprint across the US, Europe, and Asia, which allows for a 'China for China' strategy to serve local OEMs, alongside leveraging US CHIPS Act funding for domestic expansion. The projected capital expenditures for 2025 are approximately $700 million, supporting these global operations. Here's a quick look at the geographic split of their major manufacturing assets:

Finally, the activity of Securing sole-source design wins underpins future revenue stability. The company reported 400 design wins in the first three quarters of 2025. This momentum is crucial, as revenue impact from these 2025 wins is expected to materialize around the 2027 timeframe.

GLOBALFOUNDRIES Inc. (GFS) - Canvas Business Model: Key Resources

You're looking at the core assets that let GLOBALFOUNDRIES Inc. operate and compete. These aren't just line items; they're the actual engines of the business.

The manufacturing setup is geographically diverse. GLOBALFOUNDRIES Inc. runs four world-class fabrication plants, or fabs, strategically placed across three continents. This global footprint helps manage supply chain risk and serve regional customers better, like the expansion announced for the Dresden facility to become Europe's largest of its kind by 2028.

The technology portfolio is key to its value proposition. GLOBALFOUNDRIES Inc. focuses on differentiated process technologies, not just the bleeding edge. You see this in their specialized offerings.

• FDX platforms, which are gaining continued interest.
• SiGe (Silicon Germanium) for high-speed connectivity, like the new Complementary Bi-CMOS (CBIC) platform launched in August 2025.
• BCD (Bipolar-CMOS-DMOS) technology.

Intellectual Property is a major barrier to entry. As of late 2024, GLOBALFOUNDRIES Inc. had added its nearly 10,000 global patent assets to the LOT Network for protection. That's a substantial portfolio in semiconductor manufacturing, test, and design. It's a defintely strong asset base.

Human Capital is the team driving the innovation. As of 2025, GLOBALFOUNDRIES Inc. has a global team of approximately 13,000 employees. This number was up from 12,000 in 2023, showing some growth in personnel to support operations.

Financial Capital provides the necessary stability for long-term investment. At the close of Q3 2025, the balance sheet was strong, showing combined total cash, cash equivalents, and marketable securities at approximately $4.2 billion. This liquidity supports ongoing capital expenditures and strategic moves, like the recent acquisition of MIPS Holdings Inc.

Here's a quick look at some key financial and operational metrics from that strong Q3 2025 period:

Finance: draft 13-week cash view by Friday.

GLOBALFOUNDRIES Inc. (GFS) - Canvas Business Model: Value Propositions

You're looking at the core reasons why customers choose GLOBALFOUNDRIES Inc. (GFS) over competitors, which really boils down to security, specialization, and scale across key global regions. It's about providing an assured supply of chips that others can't or won't make under the necessary security or technology constraints.

Supply Chain Security: Geographically Diverse Manufacturing

GLOBALFOUNDRIES Inc. offers a geographically diverse manufacturing footprint spanning the U.S., Europe, and Asia, which is a direct countermeasure to supply chain fragility. This global presence is a key differentiator, ensuring continuity even when one region faces disruption. For instance, the company's Q3 2025 results highlighted strong momentum in Automotive and Communications Infrastructure, markets where supply assurance is paramount.

The company's operational scale is reflected in its Q3 2025 operational data:

Differentiated Chips: Focus on Essential, High-Performance, and Power-Efficient Solutions

GLOBALFOUNDRIES Inc. focuses its process technology development on areas where performance and power efficiency are critical, moving away from the leading-edge logic race. This strategy positions them well in secular growth markets. For example, the company saw significant year-over-year revenue growth in its Automotive and Communications Infrastructure sectors in Q3 2025.

Key technology value propositions include:

• Launch of the Complementary Bi-CMOS (CBIC) platform in August 2025, a high-performance SiGe process.
• Focus on 22FDX chips, which are important for auto safety systems and satellites.
• Development of a U.S.-based GaN power portfolio, supported by a November 2025 technology-licensing agreement with TSMC.
• The company's differentiated FinFET platform is optimized for high-performance RF connectivity and optimized memories.

The focus on product mix is clearly paying off; the non-IFRS gross margin reached 26.0% in Q3 2025, an expansion from the prior year.

Platform Specialization: Leadership in Silicon Photonics for AI Data Centers

The proliferation of AI into the real world makes low-latency, high-speed connectivity a must-have, and GLOBALFOUNDRIES Inc. is staking a claim here. Following the November 2025 acquisition of Advanced Micro Foundry (AMF), the company established itself as the largest silicon photonics pure-play foundry by revenue. This technology is essential for AI data center interconnects.

The broader Silicon Photonics Market was valued at $2.79 billion in 2025, up from $2.33 billion in 2024, with a projected CAGR of 20.99% through 2032. GLOBALFOUNDRIES Inc. anticipates its growth in this specific field will outpace the overall market growth.

Trusted Foundry Status: Sole Commercial High-Volume Foundry with US Trusted Designation

This is perhaps the most unique value proposition for defense and aerospace clients. GLOBALFOUNDRIES Inc. is the only commercial high-volume foundry with the US Department of Defense (DoD) Trusted designation. Its Malta, New York facility achieved Category 1A Trusted Supplier accreditation in May 2023.

This status underpins national security supply chains. The company has secured over $1.5 billion in CHIPS Act funding, partly due to this trusted role. The DoD has awarded GFS a $3.1 billion, 10-year contract for securely manufactured, U.S.-made semiconductors. This provides an assured supply of essential semiconductors built with the highest levels of physical and digital security protections.

Long-term Capacity: Committed to over 1 million wafers/year in Dresden by 2028

To bolster European supply chain resilience, GLOBALFOUNDRIES Inc. announced Project SPRINT on October 28, 2025, committing a €1.1 billion investment to its Dresden, Germany site. This project aims to increase production capacity to exceed 1 million wafers per year by the end of 2028, which would make it the largest site of its kind in Europe. This expansion will focus on specialized technologies like low-power, embedded secure memory, and wireless connectivity for the automotive, IoT, and defense sectors. You'll see the commitment in the numbers: the company has already invested more than €10 billion in Dresden since 2009. Finance: draft 13-week cash view by Friday.

GLOBALFOUNDRIES Inc. (GFS) - Canvas Business Model: Customer Relationships

You're looking at how GLOBALFOUNDRIES Inc. (GFS) locks in its high-value manufacturing relationships, which is key for a capital-intensive business like this. It's less about transactional sales and more about deep, multi-year commitments, especially in their growth areas like Automotive and Communications Infrastructure and Data Center.

Dedicated account management for long-term, sole-source engagements

GLOBALFOUNDRIES Inc. (GFS) structures its top-tier relationships to secure committed volume and technology alignment. This is evident in how they manage major accounts. For instance, in Q2 2025, the team adjusted a long-term agreement with a specific customer by replacing the fixed wafer volume component with a commitment for a long-term 50% share of wallet. This adjustment is expected to result in meaningfully higher wafer revenues over the remaining life of that contract.

This focus on deep partnership is also seen in strategic manufacturing agreements. In June 2025, GLOBALFOUNDRIES Inc. (GFS) became the exclusive manufacturing partner for Continental's new Advanced Electronics & Semiconductor Solutions (AESS) organization, specifically to support the demand for safe, connected autonomous vehicles. This level of commitment requires dedicated, high-touch management to ensure process technology alignment and supply chain resilience.

The company's overall revenue for Q2 2025 reached $1.688 billion, with preliminary Q3 2025 revenue also reported at $1.688 billion, showing the scale these relationships operate within. The guidance for Q3 2025 total revenue was set around $1.675 billion $\pm$ $25 million.

Deep co-development and IP integration (e.g., MIPS acquisition for processor IP)

A major step in deepening customer value came in the second half of 2025 with the acquisition of MIPS, a supplier of AI and processor Intellectual Property (IP). This move is designed to offer customers more than just manufacturing capacity; it offers pre-integrated, differentiated solutions. MIPS brings its general-purpose CPU IP, AI inference acceleration IP, and various sensors, including cores based on the RISC-V instruction set architecture (ISA).

The goal of this integration is to enable tighter alignment between processor IP and process technologies, which should lead to a faster time-to-market for complex chips. MIPS will operate as a standalone business within GLOBALFOUNDRIES Inc. (GFS), maintaining its licensing model and serving a broad customer base. This IP enhancement directly supports high-growth areas like Physical AI, edge computing, and datacenter infrastructure.

The focus on specialized, high-growth IP is clear in other areas too. For example, GLOBALFOUNDRIES Inc. (GFS) expects its silicon photonics revenue to nearly double from 2024 to 2025, reaching over $200 million in 2025.

High-touch, consultative sales for complex, differentiated platforms

Consultative sales are necessary for platforms that require deep process qualification and geographic sourcing strategies. GLOBALFOUNDRIES Inc. (GFS) is actively working with major technology companies to onshore production and diversify supply chains, which requires intensive collaboration. Key partners committed to U.S.-based production include Apple, SpaceX, AMD, Qualcomm Technologies, Inc., NXP, and GM.

The company is also tailoring its geographic strategy to customer needs. GLOBALFOUNDRIES Inc. (GFS) entered an agreement with a China-based foundry to support its customers' domestic Chinese demand using GF's automotive-grade process technologies, part of its China-for-China strategy. Furthermore, in October 2025, Silicon Labs expanded its partnership with GLOBALFOUNDRIES Inc. (GFS) for manufacturing wireless system-on-chips (SoCs) on the new 40nm Ultra Low Power platform out of the Malta, New York fab, reinforcing U.S. supply.

The Automotive and Communications Infrastructure and Data Center end markets saw double digit percent year-over-year revenue growth in Q2 2025, driven by these specialized engagements.

Capacity reservation agreements (CRAs) to ensure stable supply for customers

Capacity Reservation Agreements (CRAs) are the contractual backbone ensuring supply stability for customers designing complex, long-lifecycle products. These agreements commit GLOBALFOUNDRIES Inc. (GFS) to reserve a specific quantity of manufacturing capacity for a set period. For example, a prior agreement structure detailed specific Quarterly Commitments for calendar years 2022 and 2023, with capacity reservation set for calendar years 2024 to 2026.

These CRAs often include a Purchase Commitment where the customer agrees to buy the reserved volume, and a Supply Commitment where GLOBALFOUNDRIES Inc. (GFS) agrees to deliver that volume. The recent shift to a 50% share of wallet model, mentioned earlier, is a modern evolution of this concept, ensuring revenue stability for GLOBALFOUNDRIES Inc. (GFS) while guaranteeing a significant portion of a customer's future needs.

The company remains focused on utilizing its global footprint to meet demand, expecting to generate over $1 billion of adjusted free cash flow in 2025, partly supported by the execution on these long-term commitments.

• Exclusive manufacturing partner for Continental AESS since June 2025.
• Adjusted one long-term agreement to a 50% share of wallet commitment.
• Capacity Reservation Terms previously set through calendar year 2026.
• Acquired MIPS IP portfolio in H2 2025 to enhance RISC-V and AI offerings.
• Automotive and Comms/Data Center revenue growth in Q2 2025 was double digit percent year-over-year.

GLOBALFOUNDRIES Inc. (GFS) - Canvas Business Model: Channels

The channels GLOBALFOUNDRIES Inc. uses to reach and serve its customers are deeply integrated with its manufacturing footprint and technical engagement strategy.

Direct Sales Force: Primary channel for engaging large IDMs and fabless customers.

The success of direct engagement is reflected in the volume of new business secured through these channels. For the first three quarters of 2025 year-to-date, approximately 95% of new design wins were secured on a sole-source basis, indicating strong, direct customer commitment to GLOBALFOUNDRIES Inc. solutions. This direct relationship focus is further evidenced by the company's strategic moves, such as the exclusive manufacturing partnership announced in June 2025 with Continental's Advanced Electronics & Semiconductor Solutions (AESS) organization to support connected autonomous vehicles.

Customer Design-In Teams: Technical support for platform adoption and customization.

Technical teams drive platform adoption through design wins, which are a key metric for channel success. In the second quarter of 2025, GLOBALFOUNDRIES Inc. recorded over 200 design wins, which is double the amount from the prior year period. Overall, in the first 3 quarters of 2025, the number of design wins with leading industry players has nearly tripled compared to the same period two years prior. The Automotive segment, a key area for design-in support, represented 19% of total revenue in Q1 2025, growing 16% year-over-year, and saw double-digit percent year-over-year revenue growth again in Q2 2025.

The growth in design wins is concentrated in high-value areas:

• Edge AI, connectivity, and data center/IoT applications.
• Automotive radar saw market share as high as 30% where technology is uniquely positioned.
• Communications infrastructure and data center revenue increased 45% year-over-year in Q1 2025, reaching $174 million.

Global Manufacturing Sites: Fabs in Malta, New York; Dresden, Germany; and Singapore.

The physical manufacturing sites serve as the ultimate delivery channel, with capacity expansion directly impacting future throughput. GLOBALFOUNDRIES Inc. reported total wafer shipments (300mm equivalent) of 602,000 in the third quarter of 2025, a 10% increase year-over-year.

Key site expansion and capacity figures as of late 2025:

The company reported total assets of $16.8 billion as of the end of 2024, supporting this global infrastructure.

Technology Summits/Ecosystem Events: Showcasing new platforms and partner solutions.

Ecosystem engagement is formalized through strategic partnerships and technology integration, which act as high-level channels for technology adoption. GLOBALFOUNDRIES Inc. completed the $226 million acquisition of MIPS Holdings Inc. in Q3 2025, adding developed technology, R&D, and customer relationships, particularly strengthening capabilities in edge AI and processor IP. The company also entered a technology-licensing agreement with TSMC on November 10, 2025, covering 650 V and 80 V Gallium Nitride (GaN) technology to support U.S.-based power portfolio development.

These ecosystem activities support key market segments:

• Automotive revenue was approximately 19% of total revenue in Q1 2025.
• Communications infrastructure and datacenter revenue was 11% of total revenue in Q1 2025.

The company reaffirmed its goal to exit 2025 with gross margins at 30%, driven by improving utilization and a favorable product mix resulting from these channel strategies.

GLOBALFOUNDRIES Inc. (GFS) - Canvas Business Model: Customer Segments

You're looking at how GLOBALFOUNDRIES Inc. (GFS) divides its revenue-generating activities across different end markets as of late 2025. It's a clear pivot away from consumer reliance toward more stable, high-growth industrial and infrastructure applications.

The Smart Mobile Devices segment, while still the largest, is facing headwinds, which is why the growth in other areas is so critical to the overall picture. For instance, in the first quarter of 2025, total revenue was $1.59 billion, but the mix was already shifting significantly.

Here's a look at the revenue contribution from the key segments based on the Q1 2025 results:

The Automotive segment is definitely a bright spot. You see that 16% year-over-year growth in Q1 2025, hitting $309 million in revenue. This is directly tied to the silicon content needed for radar and advanced driver-assistance systems in new vehicles. By Q2 2025, this business, along with Communications Infrastructure, delivered double-digit percent year-over-year revenue growth. Furthermore, GLOBALFOUNDRIES Inc. announced in June 2025 that it became the exclusive manufacturing partner for Continental's AESS organization, solidifying this focus.

For Communications Infrastructure & Data Center, the growth rate is impressive. That 45% jump in Q1 2025 revenue to $174 million shows the immediate impact of 5G buildouts and AI server demand. Management expects this momentum to continue, underpinning the strong Q4 2025 revenue forecast of $1.80 billion.

The Smart Mobile Devices segment is the anchor that's currently dragging a bit. That 14% year-over-year decline in Q1 2025 revenue, despite still representing over 40% of the total, is what the company is working to balance out. You see this reflected in the Q3 2025 guidance, which anticipates continued weakness in consumer-driven end markets.

The Home and Industrial IoT segment saw a more modest 6% increase in Q1 2025 revenue, reaching $328 million. However, management noted a cautious outlook for the second half of 2025 due to residual consumer-facing IoT inventories, though they remain bullish for 2026 and beyond as AI moves to edge devices.

The Aerospace & Defense segment doesn't have specific revenue figures readily available in the latest public reports, but its importance is strategic, not just volume-based. Customers here require the company's Trusted Foundry status and assurances of a secure, geographically resilient supply chain, which is a key differentiator for GLOBALFOUNDRIES Inc. given its fabs outside of the primary East Asian hubs.

You can see the overall revenue trend for the trailing twelve months ending September 30, 2025, was $6.791B, a slight increase year-over-year.

• Q2 2025 Total Revenue was $1.688 billion.
• Non-IFRS adjusted free cash flow for Q1 2025 was $165 million, a 10% margin.
• Non-IFRS adjusted free cash flow for Q2 2025 was $277 million.
• GLOBALFOUNDRIES Inc. reaffirmed its goal to exit 2025 with gross margins at 30%.

Finance: draft Q3 2025 segment revenue variance analysis by Friday.

GLOBALFOUNDRIES Inc. (GFS) - Canvas Business Model: Cost Structure

You're building out the cost side of the Business Model Canvas for GLOBALFOUNDRIES Inc. (GFS), and the reality is that for a capital-intensive foundry like this, the costs are dominated by massive fixed asset investment and the ongoing operation of those fabs. Here's the quick math on the major cost drivers as of late 2025, based on recent financial reporting.

The single largest recurring cost category tied to the physical assets is Depreciation and Amortization. For the twelve months ending September 30, 2025, this heavy, non-cash charge amounted to approximately $1.475B.

Next, you have the significant investment required to keep the technology pipeline flowing. Research and Development (R&D) spending for the twelve months ending September 30, 2025, was reported at $506 million. This is the cost of future relevance, ensuring their process technologies remain competitive.

The operational expenses are substantial, driven by the workforce and the materials needed for fabrication. GLOBALFOUNDRIES Inc. employs approximately 13,000 people, meaning Personnel Costs-especially for highly skilled engineers and technicians-are a major component of the operating expense structure.

Manufacturing Costs are captured within the Cost of Revenue (COGS). For the third quarter of 2025, with revenue at $\text{1.688 billion}$ and a reported IFRS gross margin of $\text{24.8\%}$, the associated Cost of Revenue was roughly $\text{\$1.269 billion}$ ($\text{1.688B} \times (1 - 0.248)$). This figure directly encapsulates the raw wafer materials, chemicals, and utility expenses necessary to run the global fabrication facilities. To be fair, management noted specific supply chain cost impacts related to tariffs were expected to be limited to roughly $20 million in the second half of 2025.

Finally, the commitment to capacity expansion is reflected in Capital Expenditures (CapEx). For the full year 2025, GLOBALFOUNDRIES Inc. expected CapEx, net of proceeds from government grants, to be around $700 million.

Here is a summary of the key cost structure components:

The cost structure is heavily weighted toward fixed assets and long-term technology maintenance. You can see this in the high D&A relative to quarterly revenue of $\text{1.688 billion}$ in Q3 2025. The company's focus on profitability improvement is directly tied to managing these fixed costs through higher utilization rates.

• High fixed costs necessitate high utilization to drive margin expansion.
• Personnel costs are concentrated in highly specialized engineering roles.
• CapEx is strategically deployed for capacity expansion in key growth areas.
• D&A reflects the immense investment in global fabrication assets.

GLOBALFOUNDRIES Inc. (GFS) - Canvas Business Model: Revenue Streams

You're looking at the hard numbers driving GLOBALFOUNDRIES Inc. (GFS) revenue streams as of late 2025. The core of the business remains wafer fabrication, but the mix is shifting toward higher-value services and technologies.

The most recent concrete figure you have is the third quarter performance. GLOBALFOUNDRIES Inc. (GFS) reported Q3 2025 net revenue of $1.688 billion. This was achieved with a reported gross margin of 24.8% for the quarter.

Looking forward, the company is targeting a significant profitability milestone. GLOBALFOUNDRIES Inc. (GFS) is targeting an exit gross margin of approximately 30% by Q4 2025. The guidance for Q4 2025 net revenue is set at approximately $1.800 billion, with a projected gross margin of 27.6% ± 100 basis points.

The revenue composition is evolving, with a deliberate push into specialized, high-margin areas. This strategy is reflected in the guidance for the fourth quarter and the full year's growth drivers.

Here are the key components shaping the revenue outlook:

• Wafer Fabrication Revenue: The primary income source from manufacturing chips for external customers.
• Non-Wafer Revenue: Technology services and IP licensing are guided to represent approximately 13% of Q4 2025 total revenue.
• Non-Wafer Revenue Growth: This segment, covering services and design wins, is expected to grow 20% in 2025.
• High-Margin Product Mix: The shift to accretive platforms is evident, with Silicon Photonics revenue expected to exceed $200 million in 2025, representing a 100% year-over-year increase.

To put the recent performance and near-term expectations side-by-side, here's a quick view of the figures we have:

The focus on platforms like Silicon Photonics and FDX is clearly intended to improve the overall profitability profile of GLOBALFOUNDRIES Inc. (GFS). The company is driving this mix shift alongside operational improvements to hit that near-30% gross margin exit rate.