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GlobalFoundries forecasts 85% utilization and $722 million capex for 2025
Wednesday, February 11, 2026 at 03:45 PM
GlobalFoundries reported fourth-quarter revenue of $1.83 billion and expects an 85% fab utilization rate for 2025. The company plans $722 million in capital expenditure for 2025 with an increase in intensity for 2026. Furthermore, it targets $1 billion in silicon photonics revenue by 2028 and aims for gross margins of at least 30% by the end of 2026.
Context
GlobalFoundries reported fourth-quarter 2025 revenue of $1.83 billion, representing an 8% sequential increase despite flat year-over-year performance. Strength in the Automotive and Communications sectors helped offset ongoing soft demand in Mobile and IoT devices. Management remains confident in achieving a 30% gross margin by the end of 2026, supported by a steady 85% fab utilization rate maintained throughout the 2025 fiscal year.
To support the AI-driven data center boom, the company is prioritizing silicon photonics, aiming for $200 million in segment revenue in 2025 and $1 billion by 2028. Investment is set to accelerate, with 2025 capital expenditures reaching $722 million at an 11% intensity, followed by a planned ramp to 15-20% intensity in 2026. This spending shift highlights GlobalFoundries' move toward high-value, differentiated capacity as it pivots to meet long-term AI infrastructure needs.
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