Oct 27 (Reuters) -

GlobalFoundries' ( GFS ) John Hollister has stepped down

from the CFO position and will be succeeded by Sam Franklin on

an interim basis, the contract chipmaker said on Monday.

The management reshuffle comes at a time when the company

has pledged to invest $16 billion partly towards building more

manufacturing facilities on American soil amid U.S. President

Donald Trump's push to onshore supply chains.

The company, unlike leader TSMC, does not largely produce

cutting-edge artificial intelligence chips and is spending

heavily on upgrading its manufacturing processes to produce more

advanced chips for markets such as automotive and smartphones.

While Taiwan's TSMC manufactures the most

advanced processors designed by the likes of Nvidia ( NVDA ),

AMD and Qualcomm ( QCOM ), GlobalFoundries ( GFS ) produces the

chips used alongside them that form an essential part of

electronic systems.

Hollister, who joined the company as CFO early last year, is

leaving due to "personal reasons", GlobalFoundries ( GFS ) said, without

providing further details.

Franklin, who is currently vice president of business

finance, operations and investor relations, joined Global

Foundries in 2022.

He has previously held banking and finance positions across

firms including Mubadala, a unit of Abu Dhabi's sovereign wealth

fund that is also GlobalFoundries' ( GFS ) largest shareholder,

according to LSEG data.

"While the company determines a permanent successor, we are

confident in Sam's ability," CEO Tim Breen said in a statement.

"GF (GlobalFoundries ( GFS )) remains focused on our strategic

priorities."

GlobalFoundries' ( GFS ) adjusted gross margin has struggled to

break out of the 20-30% range for a large part of the last four

years, with analysts citing pricing problems and increased

competitive pressure.

The company is expected to report a drop of about 4% in

quarterly revenue to $1.68 billion on November 12, according to

data compiled by LSEG. Its profit is expected to fall 8% to

$165.4 million.

(Reporting by Arsheeya Bajwa; Editing by Anil D'Silva)