In first, GlobalFoundries paying dividend to shareholders
May 18-MALTA - GlobalFoundries is paying its shareholders for the first time in its history, with a 12-cent-per-share dividend, a major milestone in the company's development. The dividend, which will be paid in July, was announced during its annual investor day, where executives spoke to stock analysts and investors about the chipmaker's long-term business strategy. The company also announced a new "capital allocation framework" to use half of the company's trailing 12-month adjusted cash flow, after investments, to pay shareholder dividends and repurchase company stock. CEO Tim Breen said the company is not only doing well financially, but its focus on artificial intelligence, data centers, automotive and defense chips has it poised for years of growth. GlobalFoundries "is positioned at the center of multiple secular megatrends that are reshaping the semiconductor industry," Breen said in a statement. "We are laser-focused on the areas where our customers need true differentiation and scale, and our more comprehensive business model is enabling us to partner more deeply and innovate together." At the May 7 investor day, GlobalFoundries highlighted the revenue growth it has experienced making chips for the auto manufacturers. The company's revenue from the car companies has gone from $100 million in 2020 to $1.4 billion, with double-digit growth expected to dramatically increase that revenue by 2030. Not all companies in the semiconductor and chip sector pay dividends. Intel Corp., the largest U.S. chipmaker, stopped paying dividends in 2024 amid financial problems that led to the U.S. government taking a 10 percent stake in the company in 2025. GlobalFoundries was founded in 2009 as a spinoff off Advanced Micro Devices with billions of dollars in investment from the Emirate of Abu Dhabi. At the time, AMD had been planning a $1.2 billion computer chip factory in Saratoga County on land known as Luther Forest. It took years to not only build the factory, today known as Fab 8, but also to perfect the chipmaking process and hire the more than 2,500 people who work at the site. The company went public in October of 2021, raising $2.6 billion and listing its shares on the Nasdaq stock exchange. A month later, the company revealed its first-ever profitable quarter, having earned $5 million during the third quarter of 2021. As a comparison, the company had lost more than $1.7 billion during the six previous quarters combined. GlobalFoundries has invested more than $15 billion since it broke ground in July 2009 on what today is known as Fab 8. GlobalFoundries is planning another $16 billion in spending between Fab 8 and its Fab 9 factory in Essex Junction, Vt. Those plans include the construction of a second chip factory at Fab 8. The Times Union reached out to GlobalFoundries about the status of those projects on Monday. Shares of GlobalFoundries were trading for $67.08 Monday afternoon, down more than 5 percent for the day amid a tech stock selloff that included the chip sector.
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