GLOBALFOUNDRIES Inc.
02/27/2026 | Press release | Distributed by Public on 02/27/2026 07:36
Annual Report for Fiscal Year Ending December 31, 2025 (Form 20-F)
OPERATING AND FINANCIAL REVIEW AND PROSPECTS
You should read the following discussion and analysis together with the consolidated financial statements and the notes to such statements included in this Annual Report. This discussion may contain forward-looking statements based upon current expectations that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth under "Item 3. Key Information- D. Risk Factors" or in other parts of this Annual Report on Form 20-F.
A discussion of the changes in our results between the years ended December 31, 2023 and 2024, has been omitted from this Annual Report on Form 20-F for the year ended December 31, 2025. In order to view that discussion, please see "Item 5. Operating and Financial Review and Prospects- A. Operating Results" and "Item 5. Operating and Financial Reviews and Prospects- B. Liquidity and Capital Resources" in our Annual Report on Form 20-F for the year ended December 31, 2024, filed with the SEC on March 20, 2025, which is available on the SEC's website at www.sec.gov and our website at https://gf.com/.
Overview
In 2025, the semiconductor industry began to recover from the cyclical downturn experienced in prior periods. Customers reduced excess inventory levels, resulting in a gradual normalization of demand across most major end markets. In addition, tariffs and geopolitical tensions reinforced the importance of semiconductor supply resilience and flexibility - key characteristics offered by GF's unique and diverse geographic footprint. Against this backdrop, GF made substantial progress toward its strategic objectives in 2025. Notably, the Company achieved a record number of design wins, reflecting strong customer engagement and confidence in our differentiated technology solutions. We also completed the strategic, complementary acquisitions of AMF, MIPS and Infinilink, which expanded our technology portfolio and enhanced our ability to serve complementary markets.
GlobalFoundries remains one of the world's leading semiconductor foundries, manufacturing complex ICs that enable billions of electronic devices that are pervasive throughout nearly every sector of the global economy. Our ability to attract a significant share of single-sourced products is supported by our scaled manufacturing footprint and highly differentiated technology offerings. As we look forward, factors influencing our business performance include:
•Global demand for semiconductor products
•Customer demand for diversified global semiconductor supply including non-China and non-Taiwan based suppliers
•Design wins with new and existing customers
•Single-sourced revenue mix
•Technology solutions mix and pricing
•Long-term agreements
•Supply chain
•Shipment utilization
•Government policy and grants, see "Item 4. Information on the Company- Government Regulations."
Global Demand for Semiconductor Products
The principal source of our revenue is wafer fabrication and sales of finished semiconductor wafers, which accounted for approximately 89% of our net revenue in 2025. The rest of our net revenue was mainly derived from photomask manufacturing, sourcing services, post-fab manufacturing services and earning intellectual property license and royalty fees. Demand for these products is dependent on market conditions in the end markets in which our customers operate, which are generally subject to seasonality, as well as macroeconomic, cyclical and competitive conditions.
Semiconductor Industry Cycle
We believe that semiconductor customers in the end markets we serve reduced some of their excess inventory built up in the prior two years. Inventory dynamics vary by customer and end market, with some pockets of elevated inventory persisting compared to historical averages, particularly in the consumer centric end markets. The industry remained subject to volatility due to uncertainties in global trade policy and the macroeconomic environment. These factors led to incremental caution and uncertainty in the demand outlook, particularly for consumer-centric end markets. The company continues to monitor and adapt to changes in key macro indicators, such as inflation, interest rates, and GDP growth.
The company remains focused on executing its strategic priorities, including but not limited to: 1) deepening customer and ecosystem relationships, 2) achieving operational scale and efficiencies across our manufacturing footprint, 3) pursuing continuous improvement in cost optimization, 4) investing in a diversified and differentiated product portfolio.
Technology Megatrends
Technology megatrends including IoT, physical AI, satellite communications, cloud and next-generation automotive are reshaping the global economy. A significant driver of semiconductor demand has been, and we believe will continue to be, growth in intelligent, connected and AI-enabled edge devices, which are transforming business functions across all sectors. The wide-scale adoption of mobile devices and software solutions has increased expectations for high-speed connectivity, convenience and security in all applications. This is serving as a catalyst for increased semiconductor content in nearly every industry, and we believe that accelerated adoption of technologies such as video conferencing, telemedicine and e-education will serve to drive increased requirements for these technologies going forward.
Additionally, the electrification of automobiles, including autonomous driving applications, are contributing to an increase in semiconductor sensors. Semiconductors are increasingly integral to the performance, safety and comfort of automotive vehicles, and we believe the continued electrification of automobiles will only further accelerate this trend.
Single-sourced Revenue Mix
We manufacture products based on a combination of our own technologies and our customers' IP, resulting in a significant number of products that can only be sourced from us. Our sales and marketing strategy centers on deepening relationships with top customers and investing in technologies to become their single-source supplier for mission-critical applications. We believe a key measure of our success as a differentiated technology partner to our customers is the mix of our wafer shipment volume attributable to single-sourced business, which represented approximately 63% of wafer shipment volume in 2025. We define single-sourced products as those that we believe can only be manufactured with our technology or cannot be manufactured elsewhere without significant customer redesigns. We believe that single-sourced business will continue to represent a stable percentage of our wafer shipment volume.
Technology Solution Mix and Pricing
Product mix is among the most important factors affecting revenue and margins, as our wafer price varies significantly across technology platforms. The value of a wafer is determined principally by the uniqueness and complexity of the technology, performance characteristics, cost structure, yield and defect density. Devices with richer feature sets, higher performance, better yields and greater system-level integration require more substantial R&D investments and more complex manufacturing expertise and equipment, and thus generally command higher wafer prices.
Demand, pricing and margins for our products depend on the volumes and features of the solutions we deliver. We continually monitor and work to reduce the cost of our products and improve the potential value that our solutions deliver to our customers as we target new win opportunities. While individual product prices may decline, we believe our R&D investments, differentiated product and single-sourced strategy should lead to improvements in pricing mix and overall margins if we compete effectively.
Long-Term Agreements
We derive a portion of our net revenue from sales to customers that purchase large volumes of our products. We have entered into multiple LTAs with leading companies in the industry. Many of these contracts include customer advanced payments and capacity reservation fees in order to secure future supply. As of December 31, 2025, the aggregate remaining revenue commitment reflected by LTAs was approximately $11 billion. These LTAs include binding, multi-year, reciprocal minimum purchase and supply commitments with wafer pricing and associated mechanics outlined for the contract term.
From time to time our wafer revenue consists of restructuring or underutilization payments from customers unable to meet their volume commitments. We continue to collaborate closely with our customers to support their supply needs.
Shipment Utilization
We define shipment utilization as the ratio of wafer shipment volume divided by our estimated total capacity for wafer manufacturing in a specified period. Shipment utilization remains a very important factor in driving our financial performance, as we incur significant costs regardless of the number of wafers we actually produce. These fixed costs include staffing, electricity, infrastructure, depreciation and maintenance costs at each fab.
Our average shipment utilization rate across our global fabs was 86% and 77% for the years ended December 31, 2025 and 2024, respectively. Factors affecting shipment utilization rates include efficiency in production facilities, complexity and mix of wafer types ordered by customers, including the impact of export controls and other regulatory changes affecting customers and competitors. Our production capacity is determined based on the capacity ratings of the equipment in the fab, adjusted for expected down time due to set up for production runs and maintenance and R&D. In 2025, we operated below our production capacity driven by customer demand and market conditions.
Components of Results of Operations
Net Revenue
We generate the majority of our revenue from volume production and sales of finished semiconductor wafers, which are priced on a per-wafer basis for the applicable design. We also generate non-wafer revenue from rendering non-recurring engineering ("NRE") services, mask production, process qualification, pre-fabrication services such as bump, test, and packaging, and earning intellectual property licenses and royalties.
Cost of Revenue
Cost of revenue consists primarily of material expenses, depreciation and amortization, employee-related expenses, facility costs and costs of fixed assets, including maintenance and spare parts. Material expenses primarily include the costs of raw wafers, test wafers, photomasks, resists, process gases, process chemicals, other operating supplies and external service costs for wafer manufacturing. Costs related to NRE services are also included within the cost of revenue. As it pertains to inflation, inflationary headwinds and costs brought about by ongoing tariff uncertainties we are facing within our business, we have experienced an increase in costs for materials and energy, and we expect these increases to continue to have an adverse impact on our financial results of operations, while these economic conditions persist.
Depreciation and amortization charges primarily include the depreciation of clean room production equipment. Commencement of depreciation related to construction in progress and property, plant and equipment involves determining when the assets are available for their intended use (see Note 3. Summary of Material Accounting Policiesto our Annual Consolidated Financial Statements). Employee-related expenses primarily include employee wages and salaries, social security contributions and benefit costs for operators, maintenance technicians, process engineers, supply chain, IT production, yield improvement and health and safety roles. Facility costs primarily consist of the costs of electricity, water and other utilities and services.
Operating Expenses
Our operating expenses consist of R&D, selling, general and administrative expenses, restructuring charges, and impairment charges. Personnel costs are the most significant component of our operating expenses and consist of salaries, benefits, bonuses, share-based compensation, and commissions.
Research and Development
Our R&D efforts are focused on developing highly-differentiated process technologies and solutions. As part of our strategic repositioning, we shifted our R&D efforts to focus on technologies where we can deliver highly-differentiated solutions and discontinued our R&D-intensive single-digit node program. Our R&D expense includes personnel costs, material costs, software license and intellectual property expenses, facility costs, supplies, professional and consulting fees, and depreciation on equipment used in R&D activities. Our development roadmap includes new platform investments, platform features and extensions, and investments in emerging technology capabilities and solutions. We expense R&D costs as incurred. We believe that continued investment in our technology portfolio is important for our future growth and acquisition of new customers. We expect our R&D as a percentage of revenue to grow modestly over time driven by an increased focus on new product technologies.
Selling, General and Administrative ("SG&A")
SG&A expenses consist primarily of personnel-related costs, including sales commissions to independent sales representatives and professional fees, including the costs of accounting, audit, legal, regulatory and tax compliance. Additionally, costs related to advertising, trade shows, corporate marketing and allocated overhead costs are also included in SG&A expenses. Based on our current business activities we expect our SG&A as a percentage of revenue to be relatively stable over time as expenses grow in line with increased revenue.
Restructuring Charges
We incurred restructuring charges related to a 2022 reduction in our global workforce (a small portion of which carried through to 2024), reduction in leased workspace and engaging consultants for strategic support.
Impairment Charges
Impairment charges relates to legacy investments in our production capacity at our fab in Malta, New York.
Other Operating Charges
Finance Income
Finance income consists primarily of income related to investing activities.
Finance Expenses
Finance expenses consists primarily of interest on borrowings, amortization of debt issuance costs under our term loans, revolving credit facility, finance leases and the other credit facilities we maintain with various financial institutions.
Other Income (Expense), net
Other income (expense), net consists of one-time gains and losses and other miscellaneous income and expense items unrelated to our core operations, including gains and losses related to hedging activities.
Income Tax Expense
Income tax expense consists primarily of income taxes in certain foreign jurisdictions in which we conduct business, which mainly include Germany, Singapore and U.S. federal and state income taxes.
The following discussion covers items for and a comparison between the years ended December 31, 2025 and 2024.
A.Operating Results
The following table sets forth our consolidated statements of operations data for the periods indicated:
|
(in millions)
|
For the year ended December 31,
|
||||||||||
| 2025 | 2024 | ||||||||||
| Net revenue | $ | 6,791 | $ | 6,750 | |||||||
|
Cost of revenue(1)
|
5,101 | 5,099 | |||||||||
| Gross profit | 1,690 | 1,651 | |||||||||
|
Research and development expenses(1)
|
518 | 496 | |||||||||
|
Selling, general and administrative expenses(1)
|
375 | 427 | |||||||||
|
Restructuring charges
|
- | 7 | |||||||||
|
Impairment charges
|
- | 935 | |||||||||
|
Operating expenses
|
893 | 1,865 | |||||||||
|
Income (loss) from operations
|
797 | (214) | |||||||||
| Finance income | 159 | 201 | |||||||||
| Finance expenses | (93) | (145) | |||||||||
|
Other income (expense)
|
48 | (12) | |||||||||
|
Income (loss) before income taxes
|
911 | (170) | |||||||||
|
Income tax expense
|
(23) | (92) | |||||||||
|
Net income (loss)
|
$ | 888 | $ | (262) | |||||||
(1)Includes share-based compensation expense as follows:
| (in millions) |
For the year ended December 31,
|
||||||||||
| 2025 | 2024 | ||||||||||
| Cost of revenue | $ | 61 | $ | 58 | |||||||
| Research and development | $ | 42 | $ | 31 | |||||||
| Selling, general and administrative | $ | 102 | $ | 98 | |||||||
Comparison of Years Ended December 31, 2025 and 2024
Net Revenue
| (in millions) |
Year ended December 31,
|
||||||||||||||||||||||||||||
| 2025 | 2024 | Change | % Change | ||||||||||||||||||||||||||
| Net revenue | $ | 6,791 | $ | 6,750 | $ | 41 | 0.6 | % | |||||||||||||||||||||
Net revenue increased by $41 million, or 0.6%, for the year ended December 31, 2025, compared to the year ended December 31, 2024. The year-over-year change was driven by higher wafer shipment volumes totaling 2.3 million (300mm equivalent), a 10.4% increase from prior period, and by a 17.9% increase in non-wafer revenue driven by stronger licensing fee revenue and non-recurring engineering services revenue. This was offset by a 10.4% decrease in average selling prices ("ASPs") primarily attributable to lower pricing from certain customers in specific end markets, as well as lower underutilization payments from customers under long term agreements.
The following table presents the Company's revenue disaggregated based on end markets for the years ended December 31, 2025, and 2024.
|
End Markets (in millions):
|
Year ended December 31,
|
||||||||||||||||||||||||||||
| 2025 | 2024 | Change | % Change | ||||||||||||||||||||||||||
|
Smart Mobile Devices
|
$ | 2,678 | $ | 3,048 | $ | (370) | (12.1) | % | |||||||||||||||||||||
|
Communications Infrastructure & Data Center
|
745 | 577 | 168 | 29.1 | % | ||||||||||||||||||||||||
| Home and Industrial IoT | 1,189 | 1,267 | (78) | (6.2) | % | ||||||||||||||||||||||||
| Automotive | 1,410 | 1,206 | 204 | 16.9 | % | ||||||||||||||||||||||||
| Non wafer revenue | 769 | 652 | 117 | 17.9 | % | ||||||||||||||||||||||||
|
Total
|
$ | 6,791 | $ | 6,750 | $ | 41 | 0.6 | % | |||||||||||||||||||||
For the year ended December 31, 2025, two of four end markets experienced growth compared to the year ended December 31, 2024. Communications, Infrastructure & Data Center grew 29.1% year-over-year, supported by growth in silicon photonics optical networking and satellite communications. Automotive increased 16.9% year-over-year, driven by continued content expansion, diversification and share gains, supported by growing business associated with the introduction of new products at key customers. Home and Industrial IoT declined 6.2% year over year, primarily due to a reduction of revenue from wafer shipments to certain aerospace and defense ("A&D") customers with end-of-life products. Smart Mobile Devices decreased by 12.1% year-over-year, primarily due to lower underutilization payments from customers and pricing adjustments where customers are dual sourced. Additionally, non-wafer revenue increased 17.9% year-over-year, driven by strength in license activity and non-recurring engineering services revenue.
Cost of Revenue
| (in millions) |
Year ended December 31,
|
|||||||||||||||||||||||||
| 2025 | 2024 | Change | % Change | |||||||||||||||||||||||
| Cost of revenue | $ | 5,101 | $ | 5,099 | $ | 2 | - | % | ||||||||||||||||||
| Gross margin % | 24.9 | % | 24.5 | % | 40bps | |||||||||||||||||||||
Cost of revenue remained relatively flat for the year ended December 31, 2025, compared to the year ended December 31, 2024. The year-over-year stability in cost of revenue primarily reflects a 10.4% increase in shipments, offset by reduction in depreciation and amortization due to some of our manufacturing equipment being fully depreciated and to, a lesser extent, the impact of the 2024 impairment of certain long-lived assets.
Gross margin increased to 24.9% for the year ended December 31, 2025 from 24.5% for the year ended December 31, 2024. The increase of 40 basis points was primarily driven by improved factory loading and lower factory spending, partially offset by reduced customer underutilization payments and capacity reservation fees and a decline in ASPs as discussed in the net revenue section above.
Research and Development
| (in millions) |
Year ended December 31,
|
|||||||||||||||||||||||||
| 2025 | 2024 | Change | % Change | |||||||||||||||||||||||
|
Research and development expenses
|
$ | 518 | $ | 496 | $ | 22 | 4.4 | % | ||||||||||||||||||
| As a % of revenue | 7.6 | % | 7.3 | % | ||||||||||||||||||||||
Research and development expenses increased by $22 million, or 4.4%, for the year ended December 31, 2025, compared to the year ended December 31, 2024. The change was a result of $11 million higher share-based compensation and $22 million higher employee-related expenses due to 28% increased headcount to support R&D efforts partially offset by $12 million lower R&D portfolio investments.
Selling, General and Administrative Expenses
| (in millions) |
Year ended December 31,
|
|||||||||||||||||||||||||
| 2025 | 2024 | Change | % Change | |||||||||||||||||||||||
|
Selling, general and administrative expenses
|
$ | 375 | $ | 427 | $ | (52) | (12.2) | % | ||||||||||||||||||
| As a % of revenue | 5.5 | % | 6.3 | % | ||||||||||||||||||||||
Selling, general and administrative expenses decreased by $52 million, or 12.2%, for the year ended December 31, 2025, compared to the year ended December 31, 2024. The change was primarily a result of $59 million higher tool sales gains, $17 million lower withholding tax related to an intercompany loan, and $19 million lower digital transformation expenses due to lower consulting spend, offset by an increase of $21 million employee-related expenses due to 17% increased headcount, increased depreciation and amortization of $12 million, higher stock based compensation of $4 million and a decrease of $3 million advanced manufacturing investment tax ("AMITC").
Finance income
|
(in millions)
|
Year ended December 31,
|
|||||||||||||||||||||||||
| 2025 | 2024 | Change | % Change | |||||||||||||||||||||||
| Finance Income | $ | 159 | $ | 201 | $ | (42) | (20.9) | % | ||||||||||||||||||
Finance income decreased by $42 million, or 20.9%, for the year ended December 31, 2025, compared to the year ended December 31, 2024. The decrease was primarily due to lower interest income generated from lower year-over-year cash balance and a decline in interest rates.
Finance expense
| (in millions) |
Year ended December 31,
|
|||||||||||||||||||||||||
| 2025 | 2024 | Change | % Change | |||||||||||||||||||||||
|
Finance (expenses)
|
$ | (93) | $ | (145) | $ | 52 | 35.9 | % | ||||||||||||||||||
Finance expenses decreased by $52 million or 35.9% for the year ended December 31, 2025 compared to the year ended December 31, 2024. The decrease in interest expense was due to lower debt balances as a result of prepayment of the term loan in 2025.
Other Income (expense), net
| (in millions) |
Year ended December 31,
|
|||||||||||||||||||||||||
| 2025 | 2024 | Change | % Change | |||||||||||||||||||||||
|
Other income (expense), net
|
$ | 48 | $ | (12) | $ | 60 |
*N/M
|
|||||||||||||||||||
|
*N/M - Not meaningful
|
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Other income (expense), net increased by $60 million for the year ended December 31, 2025, compared to the year ended December 31, 2024. The increase was primarily due to a $31 million gain on the remaining equity interest of a joint venture, a nonrecurring gain of $24 million recognized in connection with the liquidation of a manufacturing plant that was not material to the Company's operations, $16 million increase in gains on equity investments and $7 million of increased interest income related to an AMITC refund. This was partially offset by a $9 million contingency loss and $8 million higher foreign exchange currency losses.
Income tax expense
| (in millions) |
Year ended December 31,
|
|||||||||||||||||||||||||
| 2025 | 2024 | Change | % Change | |||||||||||||||||||||||
|
Income tax (expense)
|
$ | (23) | $ | (92) | $ | 69 | 75.0 | % | ||||||||||||||||||
Income tax expense decreased by $69 million, or 75.0%, for the year ended December 31, 2025, compared to the year ended December 31, 2024. The decrease is primarily due to $187 million of tax benefit from the recognition of German deferred tax assets that are no longer contingent, offset by $116 million of tax expense related primarily to the revaluation of Singapore deferred tax assets and liabilities and nondeductible expenses.
B.Liquidity and Capital Resources
We have historically financed operations primarily through cash and cash equivalents, marketable securities, as well as cash generated from our business operations, including prepayments under LTAs, debt and government grants. As of December 31, 2025, our cash and cash equivalents and marketable securities balances of $4.0 billion included $1.8 billion of cash and cash equivalents and $2.2 billion of marketable securities. As of December 31, 2024, our cash and cash equivalents and marketable securities of $4.2 billion included $2.2 billion of cash and cash equivalents and $2.0 billion of marketable securities.
As of December 31, 2025 and 2024, respectively, we had an undrawn revolving credit facility of $1.0 billion. In addition to our available revolvers, we had $1.2 billion and $1.8 billion of debt outstanding as of December 31, 2025, and 2024, respectively, which was comprised of multiple term loans and other debt facilities in various currencies. Our future capital requirements will depend on many factors, including our revenue growth rate, the timing and the amount of payments we receive from customers pursuant to our LTAs and other business arrangements, the timing and extent of spending to support development efforts, the introduction of new and enhanced products and solutions, the continuing market adoption of our platform, and our obligations to repay our indebtedness from time to time. We may from time to time seek to raise additional capital to support our growth. As of December 31, 2025, we believe that our existing cash, cash equivalents, investment in marketable securities, credit under our revolving credit facility, and expected cash generated from operations are sufficient to meet our capital requirements for at least the next 12 months and beyond.
The following table shows a summary of our term loan facilities, other debt facilities, which consists of the loan agreement with Singapore Economic Development Board and our committed undrawn revolvers.
|
(in millions)
|
Year ended December 31,
|
||||||||||
| 2025 | 2024 | ||||||||||
| Term loan facilities | $ | 53 | $ | 798 | |||||||
| Other debt facilities | $ | 1,098 | $ | 1,008 | |||||||
| Revolvers and letters of credit | $ | 1,011 | $ | 1,012 | |||||||
Government grants are also a source of capital. Those grants are primarily provided in connection with construction and operation of our wafer manufacturing facilities, employment and R&D. For the years ended December 31, 2025 and 2024, we received $315 million and $107 million, respectively, in proceeds from government grants. The grants received in 2025 relate primarily to grant programs in Singapore and U.S.
We monitor capital using a gearing ratio, which is net debt divided by total capital plus net debt. Our policy is to keep the gearing ratio within a range to meet our business needs. We may from time to time seek to raise additional capital to support our growth. Any equity financing we may undertake could be dilutive to our shareholders, and any additional debt financing we may undertake could require debt services and financial and operational requirements that could adversely affect our business. We cannot provide any assurance that we would be able to obtain future financing on favorable terms or at all.
Cash Flows
The following table shows a summary of our cash flows for the periods presented:
| (in millions) |
Years Ended December 31,
|
||||||||||||||||
| 2025 | 2024 |
Change
|
|||||||||||||||
| Cash provided by operating activities | $ | 1,731 | $ | 1,722 | $ | 9 | |||||||||||
| Cash used in investing activities | (1,274) | (1,125) | (149) | ||||||||||||||
|
Cash used in financing activities
|
(845) | (785) | (60) | ||||||||||||||
| Effect of exchange rate changes on cash and cash equivalents | 5 | (7) | 12 | ||||||||||||||
|
Net decrease in cash and cash equivalents
|
$ | (383) | $ | (195) | $ | (188) | |||||||||||
Operating Activities
Cash provided by operating activities was $1,731 million for the year ended December 31, 2025, a $9 million increase from the $1,722 million provided by operating activities for the year ended December 31, 2024. The increase reflects higher net income of $1,150 million due to the impact of prior-year impairment charges as well as $81 million of higher inflows from working capital driven by $218 million favorable movement in inventory as a result of inventory builds during 2024. Trade and other payables decreased by $72 million driven by capacity reservation fees offset by timing differences. Unfavorable movement in receivables and prepayments of $209 million was also largely attributable to reduced capacity reservation fees. Cash paid or received for interest and taxes increased $51 million driven by $59 million decrease of interest paid due to lower debt balances and $12 million decrease in taxes paid offset by $20 million lower interest received as a result of lower cash balances and interest rates. The favorable changes were offset by lower non cash adjustments of $1,273 million primarily due to the impact of prior-period impairment charges of $935 million and reduced depreciation and amortization of
$254 million driven by some manufacturing equipment being fully depreciated in 2025 and to a lesser extent, the impact of the 2024 impairment of certain long-lived assets.
Investing Activities
Cash used in investing activities was $1.3 billion for the year ended December 31, 2025, compared to cash used in investing activities of $1.1 billion for the year ended December 31, 2024, reflecting a $149 million increase. The year-over-year change was primarily attributable to a $613 million increase in cash paid for acquisitions, $97 million higher purchases of property, plant and equipment and intangible assets and a $59 million increase in purchases of equity securities. These changes were offset by a $258 million decrease in purchases of marketable securities, $138 million increase in proceeds from government grants, $114 million increase in proceeds from the sales of property, plant and equipment, primarily related to tool sales, and $110 million higher proceeds from the sales and maturities of marketable securities.
Financing Activities
Cash used in financing activities was $845 million for the year ended December 31, 2025, compared to cash used in financing activities of $785 million for the year ended December 31, 2024, reflecting a $60 million increase. The year-over-year increase was due to higher repayments of debt and finance lease obligations of $223 million, a $28 million decrease in proceeds from issuance of equity instruments, net of taxes paid, and $11 million decrease in net proceeds from borrowings. These were offset by the purchase of treasury stock for $200 million in 2024.
Contractual Obligations
As of December 31, 2025, we had $800 million of purchase commitments related to contracts for capital expenditures. Of the total balance, $619 million is due within the next 12 months as of December 31, 2025. See Note 30. Commitments and Contingenciesto our Annual Consolidated Financial Statements for additional details.
C.Research and Development, Patents and Licenses
Refer to "Item 4. Information on the Company" for discussion on our research and development and intellectual property.
D.Trend Information
Please refer to "Item 5. Operating and Financial Reviews and Prospects- Executive Overview and Other Recent Events" for a discussion of material recent trends in our production, sales, costs and selling prices, and other known trends, uncertainties, demands, or other events that we believe are reasonably likely to have a material effect on our operating revenues, income from continuing operations, profitability, liquidity or capital resources, or that would cause reported financial information not necessarily to be indicative of future operating results or financial condition.
E.Critical Accounting Policies and Estimates
Our consolidated financial statements included elsewhere in this annual report have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). Management must make certain estimates and assumptions that affect the amounts reported in the financial statements, based on experience, existing and known circumstances, authoritative accounting guidance and pronouncements and other factors that management believes to be reasonable, but actual results could differ materially from these estimates. To the extent there are differences between our estimates and actual results, our future financial statement presentation, financial condition, results of operations and cash flows will be affected. Note 4. Critical Accounting Judgments, Estimates and Assumptionsto our consolidated financial statements contains a description that sets forth information about critical judgments, estimates and assumptions in applying accounting policies that have the most significant effect on the amounts recognized in the consolidated financial statements.
Off Balance Sheet Arrangements
During the periods presented, we did not have, and we do not currently have, any off-balance sheet financing arrangements or any relationships with unconsolidated entities or financial partnerships, including entities sometimes referred to as structured finance or special purpose entities, that were established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes.
Safe Harbor
See "Cautionary Statement Regarding Forward-Looking Information."
GLOBALFOUNDRIES Inc. published this content on February 27, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on February 27, 2026 at 13:36 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]