Cirrus Logic and GlobalFoundries expand partnership for chip development

AUSTIN & MALTA - Cirrus Logic (NASDAQ:CRUS) and GlobalFoundries (NASDAQ:GFS) announced Tuesday they are expanding their long-standing relationship to accelerate development of next-generation semiconductor technologies.

The companies will jointly develop Bipolar-CMOS-DMOS (BCD) process technology, which enables multiple functions on a single chip to improve power efficiency and reduce size. This technology will be manufactured at GlobalFoundries’ facility in Malta, New York, adding a U.S.-based production option to complement existing manufacturing in Singapore and Germany.

The collaboration also includes accelerating innovation in Gallium Nitride (GaN) technology at GlobalFoundries’ facility in Essex Junction, Vermont. GaN technology offers high power density and voltage handling capabilities that provide efficiency benefits for consumer and industrial applications.

"We are excited to deepen our long-standing relationship with GlobalFoundries and help accelerate cutting-edge mixed-signal chip manufacturing to the U.S.," said John Forsyth, Cirrus Logic President and CEO.

Tim Breen, CEO of GlobalFoundries, noted that the partnership would strengthen "domestic manufacturing capabilities that are vital to national competitiveness and economic resilience."

Cirrus Logic, headquartered in Austin, Texas, specializes in low-power, high-precision mixed-signal processing solutions for mobile and consumer applications. GlobalFoundries is a semiconductor manufacturer with facilities across the U.S., Europe, and Asia.

The expanded collaboration is expected to support Cirrus Logic’s delivery of mixed-signal products while strengthening supply chain resilience and geographic diversity for its customers, according to the press release statement.

In other recent news, Cirrus Logic reported impressive first-quarter results, with earnings per share reaching $1.51, significantly surpassing the forecasted $1.08 by 39.81%. The company’s revenue for the quarter was $407.3 million, exceeding expectations by 11.58%. Benchmark has reiterated its Buy rating on Cirrus Logic, maintaining a price target of $125, citing the company’s strong performance and guidance for the next quarter, which is 8% to 10% above consensus. Similarly, Stifel has also maintained its Buy rating with a price target of $120, attributing the outperformance to stronger-than-expected smartphone unit volumes.

The company’s revenue showed a 4.0% sequential decline but still exceeded Stifel’s estimate of $360.0 million by 13.1%. Benchmark highlighted that Cirrus Logic’s revenue was 12% above estimates, and earnings per share were 38% ahead of expectations. These results have positively influenced investor sentiment, as reflected in the stock’s performance in aftermarket trading. The company’s robust earnings and optimistic guidance have contributed to analyst firms maintaining their positive outlooks.

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