Feb 11 (Reuters) -

GlobalFoundries ( GFS ) on Tuesday forecast first-quarter

revenue and profit below Wall Street estimates as the contract

chipmaker braces for the potential impact of President Donald

Trump's tariffs on automaker clients and a challenging

smartphone market in 2025.

Shares of the Malta, New York State-based company were down

5.1% before the bell.

GlobalFoundries ( GFS ) expects its first quarter revenue between

$1.55 billion and $1.60 billion. Analysts were expecting $1.66

billion, according to data compiled by LSEG.

The automotive sector, the company's third-largest revenue

segment, is particularly vulnerable to the effects of tariffs on

steel and aluminum imports in the U.S.

GlobalFoundries ( GFS ) signed a

long-term agreement

with General Motors ( GM ) in 2023 to establish dedicated

production capacity exclusively for the Detroit-based carmaker

at the chipmaker's Malta facility.

The company's biggest segment, smartphones, is also under

pressure, with the global smartphone market expected to be

turbulent in 2025, according to research firm Canalys.

On an adjusted basis, GlobalFoundries ( GFS ) expects to earn

between 24 cents per share and 34 cents per share in the first

quarter, the mid-point of which is below analyst estimates of 32

cents.

The world's third-largest chipmaker posted revenue of $1.83

billion in the fourth quarter, which missed analysts' estimates

of $1.98 billion, according to data compiled by LSEG.

Excluding items, GlobalFoundries ( GFS ) posted a profit of 46 cents

per share in the fourth quarter, compared to analysts'

expectations of 57 cents per share.

Earlier this month, the chipmaker appointed Tim Breen as its

CEO, succeeding Thomas Caulfield.