GlobalFoundries announced a new partnership with BAE Systems to supply radiation‑hardened 12‑nanometer FinFET chips for the company’s RH12™ Storefront, a turnkey solution that integrates RF, low‑power memory, and logic into a single package. The chips will be fabricated on GlobalFoundries’ 12LP FinFET platform at its Malta, New York facility, which holds a Category 1A Trusted Supplier accreditation from the U.S. Department of Defense and complies with ITAR and EAR regulations.
The partnership follows a strong financial performance for GlobalFoundries. In the second quarter of 2025, the company reported revenue of $1.688 billion, up 3.4% from $1.632 billion in Q2 2024, and a net income of $228 million, a 47% increase from the prior year. Earnings per share rose to $0.41 from $0.38, beating consensus estimates of $0.36 by $0.05 or 14%. The beat was driven by disciplined cost management and a favorable mix shift toward higher‑margin automotive and communications‑infrastructure customers.
Segment analysis shows that automotive revenue grew 12% YoY, while communications‑infrastructure revenue increased 9%, reflecting robust demand for connected‑vehicle and 5G infrastructure. The company’s datacenter and edge‑AI segments also contributed to the earnings lift, with datacenter revenue up 8% and edge‑AI up 15%. These gains offset a modest decline in legacy consumer electronics revenue, which fell 4% due to a slowdown in the smartphone market.
Management highlighted the strategic importance of the BAE partnership. CEO Tim Breen noted that “the collaboration with BAE Systems exemplifies how GlobalFoundries can leverage its commercial FinFET platform to deliver high‑value, mission‑critical chips for defense and space applications.” Senior director Ezra Hall added that the partnership “demonstrates the versatility of our 12LP technology and reinforces our position as a trusted supplier for ITAR‑controlled products.”
Looking ahead, GlobalFoundries guided for Q4 2025 revenue of approximately $1.8 billion, up from $1.688 billion in Q3 2025, and a non‑IFRS diluted EPS of $0.47, a 6% increase from the prior quarter. The guidance reflects confidence in continued demand from automotive, communications, and defense markets, while acknowledging potential headwinds from raw‑material cost inflation.
The partnership with BAE Systems is expected to deepen GlobalFoundries’ footprint in the defense and aerospace sector, a high‑margin market that values secure, ITAR‑compliant manufacturing. By converting a commercial FinFET platform into a radiation‑hardened solution, GlobalFoundries positions itself to capture a growing share of the space‑electronics market, which is projected to expand as U.S. and allied governments invest in domestic semiconductor supply chains for national security.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.