GlobalFoundries announced that it has signed an agreement with Qualcomm to extend the supply of existing 5G transceiver, Wi-Fi, automotive, and IoT connectivity chips until 2028, while the supply will double above. It is reported that Qualcomm will purchase an additional $4.2 billion worth of chips, bringing the total to $7.4 billion.
Qualcomm has begun a long-term partnership with GlobalFoundries since 2021 and is one of the latter’s first long-term supply customers covering multiple geographies and multiple technologies. The agreement secures GlobalFoundries’ production capacity at the 22FDX fab in Dresden, Germany, and the fab in France, exclusively for customers in the European region, while also utilizing the fab in Singapore to manufacture 5G front-end modules.
The new agreement expands GlobalFoundries’ collaboration with
Qualcomm on FinFETs and will use the former’s fab in New York, U.S., to manufacture chips for 5G transceivers, Wi-Fi, automotive, and IoT connectivity.“
With accelerating demand for 5G, Automotive and IoT applications, a robust supply chain is critical for ensuring innovation in these areas remains uninterrupted,” said Dr. Roawen Chen, Senior Vice President, and Chief Supply Chain and Operations Officer, Qualcomm Technologies, Inc. “
Our continued collaboration with GF helps us to expand the next generation of wireless innovation as we move toward a world where everyone and everything can be intelligently connected.”
GlobalFoundries also
announced preliminary results for the second quarter ended June 30, 2022, showing revenue of a record $1.99 billion, beating expectations of $1.97 billion, representing a 23% year-over-year increase. Gross margin was 27% (28% adjusted); net profit was $264 million ($317 million adjusted), also a record high. GlobalFoundries said wafer shipments reached a new high of 630,000 in the second quarter, with double-digit growth in shipments from its fabs in the U.S. and Europe.
