GF posted a strong Q1 with gross margin hitting a record 29%. Smartphones remain soft, but silicon photonics and automotive demand are surging, and management expects SiGe capacity to stay sold out through 2027. Here's how the foundry is transforming through its SCALE platform and IP acquisitions.

GF raised its full-year CID growth target from the high 30s to 50–60% and now expects silicon photonics revenue to more than double, while non-IFRS gross margin touched 30% a year ahead of plan. With incremental revenue dropping almost entirely to gross profit, the market has to reprice GF's content, not its capacity.