GlobalFoundries Hopes to Turn Profitable Amid the Chip Shortage
After years of losses, the newly public company shifted its focus to the low end of the market.
The GlobalFoundries chipmaking plant in upstate New York.
Photographer: Adam Glanzman/Bloomberg
When Apple Inc. reported its most recent quarterly earnings, it said that revenue was $6 billion less than it could have been because it couldn’t get all the chips it needed and that the current quarter would be even worse. In doing so, it was revealing not only that the global semiconductor shortage was affecting one of the world’s most valuable companies, but also how it did so.
Apple’s devices famously use cutting-edge chips that the company designs for its own needs. Those weren’t the problem, according to Chief Executive Officer Tim Cook—it was the simpler chips that carry out mundane functions such as managing power and data. “On legacy nodes, we compete with many different companies for supply, and it’s difficult to forecast when those things will balance,” he told investors on Oct. 28.