GlobalFoundries Ships 10 Million Energy-Efficient Wi-Fi Units Might Change The Case For Investing In SLAB

• On August 28, 2025, GlobalFoundries announced that it had shipped over 10 million Silicon Labs Wi-Fi units built on its 40LP platform, marking a significant production milestone for energy-efficient wireless SoCs for IoT applications.
• This collaboration strengthens Silicon Labs' leadership in low-power wireless connectivity, highlighting its expanding presence in the fast-growing smart device and IoT ecosystem.
• We’ll now assess how the large-scale rollout of energy-efficient Wi-Fi 6 chips shapes Silicon Labs’ broader investment narrative.

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Silicon Laboratories Investment Narrative Recap

To own Silicon Laboratories, you have to believe in the continued expansion of the connected device and IoT markets, as well as the company’s ability to deliver differentiated, energy-efficient wireless solutions at scale. The recent milestone of 10 million Wi-Fi 6 chips shipped strengthens Silicon Labs’ positioning but is unlikely to materially shift near-term results or fundamentally mitigate heightened competition in IoT connectivity chips, which remains the most significant risk to its margin outlook.

Among the recent announcements, the launch of the Series 3 SoCs in May stands out as highly relevant; this initiative underpins Silicon Labs' push to support the rising demand for smarter, more secure, and power-efficient edge devices, directly tying to the current production ramp with GlobalFoundries and adding momentum to its growth catalysts.

Yet, while the momentum around large-scale chip rollouts is encouraging, investors should not overlook the growing competitive threat from larger and lower-cost rivals...

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

Silicon Laboratories' outlook points to $1.2 billion in revenue and $13.9 million in earnings by 2028. This scenario assumes a 19.2% annual revenue growth rate and a $118.5 million earnings increase from current earnings of -$104.6 million.

Uncover how Silicon Laboratories' forecasts yield a $150.44 fair value, a 12% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members provided two fair value estimates for Silicon Labs, ranging widely from US$81.05 to US$150.44. While some see untapped upside, others remain concerned about long-term pricing and margin pressure as industry competition intensifies, inviting you to review these varied opinions for a fuller picture.

Explore 2 other fair value estimates on Silicon Laboratories - why the stock might be worth as much as 12% more than the current price!

Build Your Own Silicon Laboratories 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 Silicon Laboratories research is our analysis highlighting 1 key reward that could impact your investment decision.
• Our free Silicon Laboratories research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Silicon Laboratories' 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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