CRUS, GlobalFoundries Deepen Alliance on Next-Gen Chip Technologies

Cirrus Logic Inc. (CRUS) recently expanded its long-standing collaboration with GlobalFoundries (GFS), which specializes in semiconductor manufacturing. The initiative is set to boost the development and commercialization of cutting-edge semiconductor technologies, with broader implications for industries ranging from consumer electronics to automobiles.

A key aspect of this collaboration is the development of BCD (Bipolar-CMOS-DMOS) process technology. BCD integrates three different semiconductor processes on a single chip. This integration allows devices to become more compact, efficient and versatile, reducing both power consumption and form factor, critical attributes in today’s technology-driven markets.

The technology will be manufactured at GFS’ facility in Malta, NY, providing a U.S.-based option to complement existing production in Singapore and Germany. This geographic diversity ensures greater supply chain resilience and aligns with the growing need for domestic semiconductor manufacturing capabilities.

In addition to BCD technology, Cirrus Logic and GFS are also deepening their collaboration in Gallium Nitride (GaN), a material that is advancing the semiconductor industry due to its high-power density, ability to withstand high voltages and superior energy efficiency compared to traditional silicon. Applications for GaN technology are broad and transformative, spanning consumer electronics, industrial systems and automotive. For CRUS, the integration of GaN into its mixed-signal and power portfolio represents an opportunity to expand into new markets while providing customers with state-of-the-art solutions for energy efficiency and high-performance power management.

CRUS Drives Innovation & Growth in Consumer Electronics

Cirrus Logic is gaining momentum in laptops and next-gen smartphones, fueled by its amplifier launch and debut of a 22nm smart codec in fiscal 2025. Strong design wins with major platforms and the introduction of general market components broaden its portfolio and expand revenue opportunities.

Partnering with Intel on Arrow Lake strengthens its laptop presence, with new amplifier and codec solutions enhancing audio quality. With products shipping across multiple phone generations and rising adoption in laptops, Cirrus Logic is well-positioned to capture growth as the mixed-signal market expands from $6.8 billion in 2025 to $8.5 billion in 2029.

However, customer concentration remains a key risk for the company. Despite its broad global customer base, losing a major customer, facing a sharp drop in sales or pricing with one, or having to offer significant discounts to preserve relationships could materially affect its revenue, margins, earnings and overall performance.

CRUS also faces risks from macroeconomic uncertainty, tariffs and currency fluctuations. While it is working with its supply chain to adapt, these challenges could still disrupt operations and weigh on growth.

CRUS’ Zacks Rank & Stock Price Performance

CRUS currently carries a Zacks Rank #3 (Hold). The stock has lost 19.3% in the past year against the Zacks Electronics-Semiconductors industry’s growth of 35.1%.

Stocks to Consider

Ubiquiti Inc. (UI) carries a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1(Strong Buy) Rank stocks here.

In the last reported quarter, it delivered an earnings surprise of 61.29%. Ubiquiti spends significantly on research and development activities for developing innovative products and state-of-the-art technology to expand its addressable market and remain at the cutting edge of networking technology. The company believes its new product pipeline will help to increase average selling prices for high-performance, best-value products, thus raising the top line. Ubiquiti is witnessing healthy traction in the Enterprise Technology segment.

Jabil, Inc. (JBL) currently carries a Zacks Rank #1. In the last reported quarter, it delivered an earnings surprise of 9.44%.

Jabil’s focus on end-market and product diversification is a key catalyst. The company’s target of “no product or product family should be greater than 5% operating income or cash flows in any fiscal year” is commendable. This initiative should position Jabil well on the growth trajectory.

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This article originally published on Zacks Investment Research (zacks.com).

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