Aug. 06, 2025, Aug. 06, 2025 –
Despite a weak Q3 outlook amid sluggish consumer demand, GlobalFoundries is making bold moves in China. The chipmaker is accelerating its “China-for-China” strategy through a new deal with a local foundry, kicking off with automotive-grade CMOS and BCD technologies, according to its press release and IT Home.
As highlighted by IT Home, citing company executives, the target orders come from both domestic and international semiconductor companies with demand in China—without requiring customers to redevelop or requalify their chip designs when shifting fabs.
Based on the earnings transcript from Seeking Alpha, GlobalFoundries emphasized it will retain full control of IP and quality, while leveraging strong customer ties in China—having already secured design wins in battery management, radar, MCUs, and PMICs over the past year. Notably, the U.S. foundry firm’s automotive chips are already shipping to Chinese clients, as per Seeking Alpha.
Interestingly, CEO Tim Breen noted that the move has also sparked strong interest from Chinese clients seeking more than just domestic supply. Many are now pursuing a dual-sourcing model—manufacturing locally for China, while leveraging GF’s global footprint to serve overseas markets, he added.
GlobalFoundries isn’t alone in betting big on China localization. According to Jiemian, NXP is also eyeing a local foundry partnership to manufacture chips entirely within China. While NXP already operates a major packaging and testing facility in Tianjin, wafer fabrication has remained concentrated in its U.S. and Singapore plants, Jiemian reported.
As noted by Reuters, GlobalFoundries gave a downbeat Q3 outlook, projecting revenue of $1.68 billion—well below Wall Street’s $1.79 billion estimate—as demand from consumer electronics remains sluggish.
GlobalFoundries raised its investment plan to $16B in June, adding $1B for capex and $3B for R&D in next-gen chips for EVs and AI servers, per Reuters. The foundry also topped Q2 expectations with $1.69B in revenue and 42 cents EPS, fueled by cost cuts and solid growth in auto and datacenter segments, the report adds.