GlobalFoundries posts 56% jump in quarterly revenue

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GlobalFoundries posts 56% jump in quarterly revenue

Screen displays the company logo for semiconductor and chip maker, GlobalFoundries Inc. during the company's IPO at the Nasdaq MarketSite in Times Square in New York City.

The Reuters GlobalFoundries posted a 56% increase in revenue on Tuesday, in its first earnings update after going public in October, as the global semiconductor shortage forces companies to secure chips used in everything from cars to mobile phones.

The company makes silicon wafers for chip designers such as Advanced Micro Devices and Broadcom Inc, which do not have their own fabrication plants.

The supply shock triggered by the shortage has helped the company, which makes chips that are seen as being non-cutting edge but important at the same time.

Revenue increased to $1.7 billion from $1.09 billion in the quarter ended Sept. 30.

It forecast current-quarter sales to be between $1.8 billion and $1.83 billion.

In the third quarter, GlobalFoundries posted a net income of $5 million, or 1 cent per share, compared to a year earlier, which was $293 million, or 58 cents per share.