How Investors May Respond To GlobalFoundries (GFS) Licensing TSMC GaN Technology for U.S. Power Chips

• GlobalFoundries announced a technology licensing agreement with Taiwan Semiconductor Manufacturing Company Ltd. to access advanced 650V and 80V Gallium Nitride (GaN) technologies, enabling U.S.-based manufacturing of next-generation power chips for data centers, industrial, and automotive markets.
• This agreement is expected to help GlobalFoundries broaden its differentiated offerings and address increased demand for efficient power systems across high-growth sectors, while reinforcing U.S. semiconductor capacity.
• Now, we'll explore how access to TSMC's GaN technology could reshape GlobalFoundries' long-term positioning and investment outlook.

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GlobalFoundries Investment Narrative Recap

For investors considering GlobalFoundries, the central belief rests on the company’s opportunity to capture rising demand in automotive, data center, and industrial chips, especially as clients seek resilient, regional supply chains. The recent TSMC GaN technology licensing agreement expands GF’s differentiated power chip offerings in the US, but given its production launch is slated for late 2026, it is unlikely to materially affect near-term catalysts or address the most pressing risk: GF’s limited exposure to advanced process nodes, which remains a key challenge.

Among recent announcements, the expanded partnership with Silicon Labs stands out for its direct reinforcement of US-based manufacturing, aligning with customer needs for secure and efficient supply chains. This development supports GlobalFoundries’ long-term growth catalysts, particularly as demand rises for energy-efficient wireless solutions in industrial and IoT markets.

In contrast, investors should also be aware of the continued risk posed by GlobalFoundries’ lower participation in leading-edge process nodes, as...

Read the full narrative on GlobalFoundries (it's free!)

GlobalFoundries' narrative projects $8.6 billion revenue and $1.4 billion earnings by 2028. This requires 8.0% yearly revenue growth and a $1.5 billion earnings increase from -$115.0 million currently.

Uncover how GlobalFoundries' forecasts yield a $39.43 fair value, a 15% upside to its current price.

Exploring Other Perspectives

Five Community fair value estimates for GlobalFoundries range from US$27.47 to US$54.14 per share. While viewpoints vary widely, the ongoing challenge of limited exposure to advanced process technology has broader implications for future performance, explore these differing perspectives to inform your own outlook.

Explore 5 other fair value estimates on GlobalFoundries - why the stock might be worth 20% less than the current price!

Build Your Own GlobalFoundries Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your GlobalFoundries research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free GlobalFoundries research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate GlobalFoundries' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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