GlobalFoundries targets 40% margins on AI growth
GlobalFoundries is positioning silicon photonics, co-packaged optics and advanced packaging as core growth drivers as it targets a 40% gross margin by 2028.
GlobalFoundries says it is aligning its long-term strategy with rising demand from data centres and AI infrastructure, with silicon photonics, co-packaged optics and advanced packaging expected to drive future growth.
Speaking at an investor conference, CFO Sam Franklin outlined a roadmap to reach a 40% gross margin by 2028, supported by a shift toward higher-value end markets including optical interconnects and custom silicon.
The company said it has invested heavily in silicon photonics over the past decade and is seeing growing demand from pluggable optical transceivers, with co-packaged optics expected to become more significant later in the decade.
Advanced packaging capabilities, including wafer-to-wafer and die-to-wafer bonding, are also being developed to support photonic and electronic integration for AI and data centre applications.
GlobalFoundries highlighted continued diversification across end markets, with data centre and communications infrastructure growing strongly, while reliance on smart mobile continues to decline.
The company expects silicon photonics and related technologies to become a larger contributor to revenue as AI-driven optical interconnect demand scales toward the end of the decade.
