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Chip Demand Outpacing Ability to Supply by 10%: GlobalFoundries CEO

GlobalFoundries, similar to others in the chip industry, is seeing “some areas of the market beginning to rebalance supply and demand, including end markets such as low-end handsets, PCs and in general, the lower end of consumer electronics market,” said…

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CEO Thomas Caulfield on a Q2 earnings call Tuesday. “Although we've experienced some decrease in some pockets of our unconstrained demand, the total demand for GF solutions remains robust and capacity continues to be oversubscribed.” In GF’s “fast-growing” end markets of home and industrial IoT, automotive, communications infrastructure and data center, “demand continues to outpace our ability to supply by about 10%,” he said. GF’s Q2 revenue of $1.99 billion was up 23% year over year, driven by increases in wafer shipments and average selling prices, he said. Caulfield bypassed Q&A so he could be at the White House for the signing of the chips bill (see 2208090062), he said: “This landmark legislation will have a profound positive impact on our nation, our industry and GF for years to come.”