Stock of
GlobalFoundries
traded higher Tuesday after the contract-chip manufacturer posted strong financial results. Demand for production capacity remained high even though some chip vendors have reported excess supplies.
GlobalFoundries (ticker: GFS) focuses on “lagging edge” semiconductor production, used in industrial, communications, and automotive applications, as well as PCs and handsets. The company deals mainly with commodity parts that in many cases remain in tight supply, in contrast with softer conditions for microprocessors, memory chips, and other parts that target PCs and smartphones.
