Key Highlights

  • GlobalFoundries announced on 14 October 2026 a US-Japan initiative providing up to $21 billion of funding for two new fabs.
  • The US Department of Commerce will receive an Equity stake of approximately four per cent in the company.
  • Second-quarter 2026 Revenue was $1,786 million, up 6% year on year, and third-quarter revenue is guided at $1,885 million, plus or minus $25 million.

A fab plan announced on 14 October

GlobalFoundries Inc. (NASDAQ:GFS) announced on 14 October 2026, from Malta, New York, a plan under a US-Japan initiative that provides up to $21 billion of funding for two new fabs. The company said about $10 billion would support the first fab and roughly a further $10 billion a second. Japan is the funder, with GlobalFoundries acting as technology provider and operator.

The first 300mm fab is expected to come online in 2029, and the company expects to break ground later in 2026 on a site it describes as permitted and shovel-ready. The second fab has no stated timeline. Each is expected to add about 900,000 300mm wafers of annual US capacity. The company warned that the plans may not proceed as expected if funding is delayed or withheld.

Government stake and CHIPS award changes

The announcement said the US Department of Commerce will receive an equity stake of approximately four per cent in GlobalFoundries under a separate agreement. No further terms, such as price or voting rights, were given. Shareholders may therefore want to monitor filings for details.

The company also agreed to amend its existing CHIPS and Science Act award, reallocating $955 million towards silicon photonics, silicon-germanium and advanced packaging at its Malta, New York, and Burlington, Vermont facilities.

Latest reported results

The most recent reported quarter is the second quarter of 2026, released on 5 August 2026. Revenue was $1,786 million, up 6% year on year and 9% sequentially. IFRS gross Margin was 28.3% and non-IFRS gross margin 29.9%. IFRS Net Income was $167 million, or $0.30 per diluted share, while non-IFRS net income was $256 million, or $0.46 per share.

Wafer shipments were 625,000 300mm-equivalent units, up 8% year on year. Operating Cash Flow was $405 million, Capital Expenditure $411 million, and non-IFRS adjusted free cash flow was negative $3 million. Cash, equivalents and marketable securities were $3.3 billion. The company also paid its first quarterly Dividend of $0.12 per share in July and declared a second, payable on 9 October.

The quarter also contained several strategic items. The company reported a letter of intent in July for a $300 million award from the US Department of Commerce linked to silicon photonics, and a May letter of intent for an expected $375 million grant tied to its quantum technology unit. It completed the Acquisition of Synopsys' ARC processor IP Business in June and of Photeon Technologies' integrated voltage regulator business in July. Letters of intent are not final awards.

Guidance

For the third quarter, management guided to revenue of $1,885 million, plus or minus $25 million, and non-IFRS Diluted Earnings per Share of $0.51, plus or minus $0.05. Non-IFRS gross margin is guided to 30.5%, plus or minus 100 basis points. These are forecasts, not reported results.

What to watch

The next earnings date is expected to be 4 November 2026, though the company has not confirmed this. Useful markers include the third-quarter outcome against guidance, any filing that details the government stake, progress towards groundbreaking, how funding conditions develop, any progress on the two letters of intent for funding, and the balance between heavy capital expenditure and free cash flow.