How GlobalFoundries, Unsung Hero of Tech, Powers AI and Electronic Innovations

Established in 2009, GlobalFoundries Inc GFS has made significant strides in the semiconductor industry. Strategic decisions, technological innovations, and global expansions mark the company's evolution. 

It has become a silent force, with its chips being integral components in various electronic devices, from smartphones and smart speakers to cars and AI servers running generative artificial intelligence models, leading to the boom of Nvidia Corp NVDA.

Within generative AI, GlobalFoundries manufactures chips that perform functions like power management, connecting to displays, or enabling wireless connections.

Thomas Caulfield, GlobalFoundries CEO, says AI is "the catalyst for our industry to double in the next eight years, and GF will have its fair share, if not more, of that opportunity," CNBC reports.

GlobalFoundries specializes in creating "essential" chips, focusing on 12-nanometer technology and above. 

These chips are pivotal for power management, wireless connections, and display functionalities. 

During the 2021 chip shortage, the company's significance became even more pronounced as it sold out entirely, highlighting its critical role in the global supply chain.

With significant investments in Singapore, Germany, France, and upstate New York, GlobalFoundries is enhancing its production capacity and technological capabilities. Singapore's $4 billion expansion has positioned it as the country's most advanced fab.

GlobalFoundries' strategic positioning outside the geopolitical crosshairs, especially amid U.S.-China tech tensions, underscores its strategic planning. 

The company's focus on older yet essential chips has minimized its impact from export bans on sending advanced tech to China.

The company has forged strong alliances with giants in the automotive and defense sectors. Exclusive deals, like the one with Lockheed Martin Corp LMT and a $3 billion agreement with the U.S. Department of Defense, underscore GlobalFoundries' significance in these industries. The company's chips are omnipresent in consumer electronics and pivotal in national defense and automotive innovations.

Price Action: GFS shares are trading higher by 0.05% at $58.22 on the last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.