The contract chip manufacturer GlobalFoundries became a public company not so long ago, so studying its quarterly reports is not so familiar against the background of competitors. Nevertheless, this allows us to judge some of the processes taking place in the industry. Even amid a 7% decline in product deliveries, the company managed to increase revenue by 14% to a record $2.1 billion and beat analysts’ expectations.
As explained by management at the quarterly reporting conference, in the fourth quarter of last year, GlobalFoundries shipped no more than 580,000 silicon wafers in the equivalent 300 mm size, which is 7% less than the result of the same period in 2021. At the same time, the average selling price of one plate increased by 20%, which was achieved both due to an increase in the number of long-term contracts concluded with customers, and due to a shift in demand for more expensive products. The rate of return for the year increased from 21.5% to 30.1%. Operating income rose 231% to $288 million, while net income increased nearly 15 times to $668 million.
At the end of all 2022, the number of shipped silicon wafers increased by 4% to 2.47 million pieces, and revenue increased by 23% to $8.1 billion. operating profit of $1.17 billion. Net losses in 2021 were $254 million, and the company ended last year with a net profit of $1.45 billion.
It is predictable that in the fourth quarter, GlobalFoundries’ revenue in the segment of chips for mobile devices decreased by 7% year-on-year to $823 million, while in the direction of personal computers it grew by only 1% to $115 million. 27% to $386 million, the automotive segment grew by 24% to $115 million, and the Internet of Things business showed growth by all 64% to $416 million.
In general, for the year, the Internet of Things was also among the growth leaders, since revenue in this segment increased by 68% to $1.483 billion, but the main contribution was made by the segment of mobile devices, which was able to increase revenue by 11% to $3.723 billion. at the end of the year, a decrease in revenue by 38% to $299 million. By the way, the server and telecommunications business increased revenue by 43% to $1.423 billion, becoming the third most important source of income for GlobalFoundries in all of 2022.
Management said the contract manufacturer was able to secure 10 more clients last year for long-term contracts totaling more than $5 billion. There were staff cuts, not to mention other expenses, but going forward, GlobalFoundries hopes to follow market trends and listen to customer requests.
In the current quarter, the company expects to earn from $1.81 to $1.85 billion, while operating income will be in the range of $233 to $282 million. Net income will be in the range of $202 to $257 million. This is generally in line with market expectations, the exchange rate shares of the company after the publication of financial statements rose by 8.44% to $72.
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