GLOBALFOUNDRIES (GFS) Morgan Stanley Technology, Media & Telecom Conference summary

Business performance and outlook

• Achieved sequential revenue growth in 2024, with Q1 as the low point and Q4 as the high point, while generating over $1 billion in free cash flow for two consecutive years despite declining revenue.

• Forecasts growth in 2025, driven by inventory normalization and consumer demand, with automotive and data center markets expected to lead.

• Automotive segment has shown consistent year-over-year growth since IPO, with expectations for continued expansion in 2025.

• Data center and communication infrastructure bottomed in 2024 and are projected to grow in 2025, while mobile remains flat and IoT sees modest recovery.

Leadership transition and strategic focus

• Internal leadership transition: Tim Breen becomes CEO, Tom Caulfield moves to Executive Chairman, and Niels Anderskouv is COO, aiming to accelerate execution.

• R&D is focused on differentiated technologies for auto, data center, mobile, and IoT, supporting a diversified and resilient portfolio.

• Executive Chairman role will emphasize strategic initiatives, government relations, and long-term innovation partnerships.

• Strategic bandwidth will be used to explore both organic and inorganic growth opportunities.

Geopolitical positioning and global footprint

• Global manufacturing footprint in the U.S., Singapore, and Germany is a competitive advantage, enabling supply chain diversification and resilience.

• Modular expansion of existing facilities is prioritized for capital efficiency and rapid response to market upturns.

• Partnerships in China are pursued selectively, focusing on local demand without broad technology transfers.

• Customers increasingly require dual qualification for products across multiple fabs to ensure supply security.