14 percent more manufactured wafers, in the end this means 37 percent more sales in the first quarter of 2022 compared to the previous year. Profitability is also increasing at Globalfoundries, the company has not reported such a high net profit for years.
With the cancellation as a manufacturer of chips for the PC market, Globalfoundries has now found its business model. Sales for the PC division, which used to be almost the sole business model, is currently only 2 percent of total sales and will continue to be below 5 percent in the future. AMD still has a few remaining orders to process, but at the latest with the changeover from AMD's new solutions in all areas to more modern production, such solutions are a thing of the past. In the future, Globalfoundries will rather manufacture power management chips here.
And that's good for the company. The upturn has recently increased significantly thanks to the demand in all areas for chips, 37 percent more sales within a year to 1.94 billion US dollars underpin this. Globalfoundries also manages to remain stable above zero and post a profit of 178 million euros again. After years deep in the red, however, it will still be many years before the huge mountain of debt is worked off. But at least for this year and next, this is de facto already set, because as the CEO of the contract manufacturer, Thomas Caulfield, explains, the company is fully booked.
We remain fully sold out in 2022 and 2023 [..] we had demand that was 25% higher than the capacity we can fulfill.
Globalfoundries
Globalfoundries announces interesting details about wafer output. This is up 14 percent year-on-year and also resulted in 19 percent higher average prices, mainly thanks to the factory in Dresden. Over 50 percent more wafers were exposed here within a year.
Revenue highlights in the first quarter of 2022 compared to the previous year (Picture: Globalfoundries) All in all, Globalfoundries wants to increase capacity for the entire group by more than ten percent this year, and prices are also expected to rise by more than ten percent on average. Since the demand for 22FDX, which has so far only been manufactured in Dresden, is so high, the contract manufacturer will carry out a technology transfer to Fab 8 in Malta, New York, in order to be able to manufacture it there as well. The main site in Malta had recently inherited the SOI systems of another fab and is now becoming a real multi-node complex.