[News] GlobalFoundries CFO Departs Ahead of €1.1 Billion Expansion in Germany

U.S.-based semiconductor manufacturer GlobalFoundries is undergoing a major leadership change. The company announced that, effective immediately, John Hollister, its Chief Financial Officer, has departed. Hollister leaves the chipmaker after just over a year in the role, having been appointed as GlobalFoundries’ finance chief in February 2024, as noted by CFO Dive.

Sam Franklin, the firm’s Senior Vice President of Business Finance, Operations, and Investor Relations, will serve as Interim Chief Financial Officer while GlobalFoundries conducts a search for a permanent replacement, the press release notes.

GlobalFoundries Accelerates Expansion in Germany

The executive changes came just a day before the company announced its latest investment plans. On October 28, GlobalFoundries unveiled a €1.1 billion expansion of its manufacturing facilities in Dresden. The investment will raise production capacity to over one million wafers annually by the end of 2028, positioning the Dresden site as the largest of its kind in Europe, the company said in its press release.

The expansion, called Project SPRINT, is set to receive backing from the German federal government and the State of Saxony under the European Chips Act framework, with EU approval expected later this year, according to Investing.com.

Bloomberg adds that GlobalFoundries CEO Tim Breen said the expansion in Germany is aimed at meeting growing customer demand for semiconductor supply chains independent of China and Taiwan.

Alongside its European expansion, GlobalFoundries announced in June a $16 billion investment to expand semiconductor manufacturing and advanced packaging at its New York and Vermont facilities. The company is working with major partners — including Apple, SpaceX, AMD, Qualcomm, NXP, and GM — to help reshore chip production to the U.S. and diversify global supply chains, the press release notes.

Profit Pressure Amid Expansion

Meanwhile, amid its active global expansion, according to Reuters, GlobalFoundries has seen its adjusted gross margin remain largely within the 20–30% range over the past four years, with analysts citing pricing challenges and rising competitive pressures as key factors.

Reuters estimates that GlobalFoundries will report a roughly 4% decline in quarterly revenue to $1.68 billion when it announces results on November 12, based on data compiled by LSEG. The company’s profit is projected to fall 8%, to $165.4 million, the report adds.

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(Photo credit: GlobalFoundries)