US semiconductor manufacturer GlobalFoundries (GF) released preliminary Q3 results on November 8, showing that the company's revenues, margins, and net income hit new records.
With US$2.1 billion growing 22% year-on-year reported for its Q3 revenue, GF is showing robust growth momentum by shipping record-high 300 mm-equivalent wafer output of 637,000 units.
GF CEO Thomas Caulfield said in the press release that the company delivered record gross, operating, and net profits, making significant progress toward its long-term financial model. "We remain on track to deliver a strong year of growth and profitability."
GF's Q3 gross margin increased 2.4 percentage points QoQ and 11.8 percentage points from a year ago to 29.4%, operating margin rose by 2.3 percentage points QoQ to 17.2%, and net income grew 27% YoY to US$336 million.
Sales performance by end markets showed that despite customers' slowing demand and inventory readjustment caused GF's sales in personal computing to fall 49.5% quarter-on-quarter and 58% Y0Y, revenue contributed by communications infrastructure and datacenter, home and industrial IoT, and smart mobile devices enjoyed growth from a year ago. Automotive sales slipped YoY but grew US$13 million QoQ, according to the presentation of the CEO.
For Q4 guidance, GF estimates its net revenue to remain flat in the range of US$2.05-2.1 billion, while gross profit margin mid-point to slip to 28.9%, and operating profit margin is expected to stay flat at 17.2%. However, the company's net income is expected to be in the range of US$645-770 million, which includes a one-time estimated gain on sales of East Fishkill Facility in December 2022, which is estimated to generate US$350-400 million in transaction proceeds.
GF announced that it has been awarded US$30 million in Federal funding to advance the development and production of next-generation gallium nitride (GaN) on silicon semiconductors at its Facility in Essex Junction, Vermont.
The company also revealed that its proprietary automotive eNVM product has been qualified for one of the largest automotive MCU suppliers in the industry. The qualification allows GF to ship the product from both the Dresden and Singapore facilities.
GF's Q3 gross profit, operating profits, and net income adjusted for non-IFRS standards are 29.9%, 18.8%, and US$368 million, respectively.