GlobalFoundries (GF) reported fourth-quarter 2025 revenue of $1.83 billion and highlighted silicon photonics, advanced packaging, and GaN power as central growth engines tied to AI data center buildouts. Communications infrastructure and data center revenue rose 32% year-over-year in Q4 and 29% for the full year, driven by optical networking, silicon photonics, and satellite communications.
GF said it doubled silicon photonics revenue in 2025 to more than $200 million and expects to nearly double it again in 2026. The company now targets a $1 billion silicon photonics run-rate by the end of 2028, supported by capacity expansion, 200G per lane production today, and a roadmap to 400G per lane and beyond. Recent acquisitions of Advanced Micro Foundry (AMF) and InfiniLink add process IP, customer programs, and high-speed design expertise, including support for co-packaged optics (CPO) architectures.
Beyond optics, GF pointed to gallium nitride (GaN) momentum in data center power, including first design wins on 650V and 100V platforms, and ongoing investment in silicon germanium (SiGe) for TIAs and driver ICs used in optical modules. The company plans higher 2026 CapEx in oversubscribed “capacity corridors,” including silicon photonics, FDX, SiGe, and advanced packaging, with government grants offsetting part of the gross spend.
- Q4 2025 revenue: $1.83B; non-IFRS gross margin: 29.0%
- FY 2025 revenue: $6.79B; communications infrastructure & data center up 29% YoY
- Silicon photonics revenue: >$200M in 2025; target ~$1B run-rate by end of 2028
- Satellite communications revenue: >$100M in 2025
- 2026 net CapEx guidance: 15–20% of revenue, focused on silicon photonics, FDX, SiGe, and advanced packaging
- Share repurchase authorization: up to $500M
“Optical networking has clearly emerged as a strong acceleration opportunity for our business at GF,” said CEO Tim Breen. “We now believe that we are on a path to reach a $1 billion run-rate revenue level for silicon photonics by the end of 2028.”
🌐 Analysis: GF is positioning silicon photonics and GaN power as structural enablers of AI infrastructure, not niche add-ons. With pluggable optics driving near-term revenue and CPO targeting 2027-scale ramps, the company is aligning 300mm manufacturing scale, packaging, and IP to capture value across the optical stack as hyperscalers push bandwidth and power density higher.
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Addendum: Investor Call Highlights
- Co-Packaged Optics (CPO) Design Wins: GF secured a CPO design win for scale-up AI networks on its CLO silicon photonics platform, with photonic ICs at both endpoints of the link. Management indicated 2027 as the expected scale ramp window for CPO, with 2026 focused on tape-outs and early customer programs.
- 400G per Lane Roadmap: GF reiterated production capability at 200G per lane today and confirmed active development toward 400G per lane and beyond, positioning its process technology for next-generation AI interconnect bandwidth requirements.
- Enablement & Ecosystem Strategy: Management emphasized PDK maturity, modeling, and simulation support as differentiation points in silicon photonics, along with ecosystem partnerships such as Corning for detachable fiber attach to support CPO transitions.
- 300mm Silicon Photonics Scale: GF is expanding silicon photonics manufacturing in Singapore and the U.S., including on 300mm wafers, to support higher volumes and improved cost structure versus legacy 200mm approaches.
- SiGe as Optical Pull-Through: Silicon germanium capacity is “running hot,” driven by TIAs and driver IC demand in optical modules. Management identified SiGe as an additional investment corridor tied directly to AI data center optics.
- Non-Wafer Revenue Mix Shift: IP, royalties, masks, and NRE are rising to 10–12% of revenue in Q1 2026 guidance, up from historical ranges. Processor IP (MIPS and pending Synopsys ARC assets) is expected to expand this higher-margin revenue stream over time.
- Margin Expansion Framework: Management cited silicon photonics as “highly accretive” to corporate gross margin. Combined automotive and communications infrastructure/data center revenue now represents roughly one-third of total revenue, supporting a path toward the company’s long-term 40% gross margin target.
- Government Grants Leverage: Gross CapEx rose in 2025, but net CapEx declined year-over-year due to higher government grants (~$150M in 2025 vs. ~$10M in 2024). Grants are expected to increase again in 2026, supporting capital-efficient expansion in strategic technologies.
