April 7, 2025 /SemiMedia/ — GlobalFoundries is expanding its manufacturing footprint in China despite a weak outlook for the third quarter, partnering with a local foundry to accelerate its “Made in China” strategy. The collaboration will initially focus on launching automotive-grade CMOS and BCD processes.

Executives at GlobalFoundries said the initiative targets domestic and international semiconductor companies operating in China. Customers will be able to shift production without redesigning or requalifying their chips. The company also emphasized that it will retain full control over intellectual property and quality while strengthening ties with its Chinese customer base.

Over the past year, GlobalFoundries has secured design wins in battery management, radar systems, microcontrollers (MCUs), and power management ICs (PMICs). It has also begun shipping automotive chips to customers in China.

CEO Tim Breen noted strong interest from Chinese clients, many of whom are adopting a dual-sourcing model that includes both local production and leveraging GlobalFoundries’ global manufacturing capabilities to serve international markets.

GlobalFoundries is not alone in this trend. NXP is reportedly exploring partnerships with Chinese foundries to achieve full in-country production. Although NXP operates a major packaging and testing facility in Tianjin, its wafer fabrication is still concentrated in the U.S. and Singapore.

While expanding local operations, GlobalFoundries provided a cautious Q3 outlook, projecting $1.68 billion in revenue—below Wall Street’s $1.79 billion forecast—citing weak demand in consumer electronics.

Still, the company raised its investment plan in June to $16 billion, including $3 billion for R&D in next-generation EV and AI server chips. With disciplined cost management and strong growth in automotive and data center markets, GlobalFoundries reported $1.69 billion in Q2 revenue and earnings of $0.42 per share, beating analyst expectations.