GlobalFoundries CFO Change and Future Strategies

GlobalFoundries announced that John Hollister is leaving his position as Chief Financial Officer (CFO), with Sam Franklin being appointed on an interim basis.

This management change comes at a time when the company pledged to invest $16 billion. This investment will be directed towards the construction of more manufacturing facilities, in line with U.S. President Donald Trump’s efforts to bring supply chains back to domestic production.

Unlike sector leader TSMC, the company is not producing advanced artificial intelligence chips; instead, it is making serious investments to strengthen its manufacturing processes to produce more advanced chips for markets such as automotive and smartphones.

While TSMC manufactures the most advanced processors designed by companies such as Nvidia, AMD, and Qualcomm, GlobalFoundries produces chips used alongside these processors, making it an essential part of electronic systems.

Hollister stated that he is leaving the company, which he joined as CFO at the beginning of last year, for "personal reasons," providing no further details. Franklin joined GlobalFoundries in 2022 as the vice president responsible for business finance, operations, and investor relations.

Franklin has worked in banking and finance for several firms, including Mubadala, which is part of Abu Dhabi's public investment fund and is also the largest shareholder of GlobalFoundries. CEO Tim Breen stated, “We are confident in Sam's abilities until a permanent successor is identified. GlobalFoundries continues to focus on our strategic priorities.”

Over the past four years, GlobalFoundries has struggled to move out of an adjusted gross margin range of 20-30%; analysts pointed to pricing issues and increased competitive pressure. According to data compiled by LSEG, the company’s quarterly revenue, set to be announced on November 12, is expected to decline by approximately 4% to $1.68 billion. Its profit is anticipated to decrease by 8% to $165.4 million.