May 6 (Reuters) - GlobalFoundries ( GFS ) forecast

second-quarter revenue and profit slightly above Wall Street

estimates on Tuesday, in a sign that the contract chipmaker was

seeing stable demand despite choppy auto production and a soft

smartphone market.

U.S. President Donald Trump's sweeping global tariff plans

have threatened to upend the semiconductor industry. Tariffs on

automakers - the third largest end-market for GlobalFoundries ( GFS ) -

have already kicked in, roiling the sector.

However, tariffs on foreign-made chips could help U.S.

manufacturers like GlobalFoundries ( GFS ) by helping redirect customers

toward chips being made in U.S. factories, outgoing CEO Thomas

Caulfield has said.

GlobalFoundries ( GFS ) said on Tuesday it saw an increase in its

automotive segment in the first quarter ended March 31 from a

year ago.

Still, the smartphone market - the company's biggest revenue

segment - is facing pressure, with estimates pointing to a

decline in smartphone demand this year.

Policy uncertainty is also clouding the chip industry, which

is bracing for potential changes to the CHIPS Act, a 2022 law

that made $52.7 billion in subsidies available for domestic

semiconductor chips manufacturing and production.

The world's third-largest chipmaker, GlobalFoundries ( GFS ),

expects net revenue of $1.68 billion, plus or minus $25 million,

in the second quarter. Analysts on average expect revenue of

$1.67 billion, according to data compiled by LSEG.

The company projected adjusted per-share profit of 36 cents,

plus or minus 5 cents, compared with estimates of 35 cents.

It reported total revenue of $1.59 in the first quarter, a

touch above expectations of $1.58 billion. Adjusted earnings of

34 cents beat estimates of 28 cents.

Reuters reported in March GlobalFoundries and Taiwanese

chipmaker United Microelectronics Corp ( UMC ) were

looking into the possibility of a merger. UMC in April, however,

said there was no on-going merger activity at the time.