Company: GFS
Filing Date: 2025-03-20
Form Type: 20-F
Source: 0001709048-25-000024
Chunk: 4

Company: GLOBALFOUNDRIES Inc.
Filing Date: 2025-03-20
Form: 20-F
Item: Item 4
Chunk 4
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 863             12%            1,423             18%  
  Home and Industrial IoT                                1,267             19%            1,604             22%            1,782             22%  
  Automotive                                             1,206             18%            1,046             14%              373              5%  
  Non-Wafer Revenue                                        652             10%              856             11%              807             10%  
  Total                                                  6,750            100%            7,392            100%            8,108            100%  

In addition, for a breakdown of our revenue by geography (based on the location of our customers’ headquarters), seeNote 32. Operating Segments Information.

Recent Industry and Market Dynamics

Semiconductor Industry Inventory Correction

In 2024, the semiconductor industry continued to experience an excess of inventory and reduced levels of demand across several of the end-markets that we serve, compounded by a volatile macro-economic environment, high historic interest rates and geopolitical tensions. The recovery is taking longer than in previous cycles and the pace is staggered across our end markets. Inventory levels remained elevated through the second half of 2024. We expect that the catalyst for reducing inventory levels and improving demand will be driven by the stabilization of key macro-economic indicators, such as inflation, interest rates and GDP growth, and within the industry specifically, the AI refresh cycle.

Competition

The foundry segment of the semiconductor industry is highly competitive both internationally and domestically, and our competitors include other major foundries, including pure-play foundries as well as IDMs that have their own foundry services. We compete primarily in areas such as technology leadership and differentiation, manufacturing yields, time-to-volume production and cycle time, pricing and customer service, and design support. Operating an at-scale foundry requires an intricate web of ecosystem partners and IP libraries, mastery of highly complex manufacturing process technology, automated fab operations, access to deep know-how and engineering talent, and a global engineering customer-support organization. Some of our competitors have greater access to capital and substantially greater production capacity, R& D, marketing and other resources. We also compete in attracting and retaining talented personnel and, increasingly, providing customers with a geographically diversified supply of semiconductor products. While we believe our global footprint is attractive for customers seeking to use geographically dispersed suppliers, some of our competitors and IDMs have commenced or announced expansions in the United States and