The firm benefited from an industry-wide deficit

GlobalFoundries Inc., the largest US provider of custom-made semiconductors, revealed quarterly revenues and earnings that exceeded analysts’ expectations, indicating that the company has profited from an industry-wide shortage.

Revenue increased by 37% to $1.94 billion in the first quarter, with earnings of 42 cents per share excluding certain factors. Analysts predicted $1.9 billion and 24 cents per share on average.

The company’s revenue forecast for the current quarter coincided with forecasts

GlobalFoundries, which is majority-owned by the Abu Dhabi government, is attempting to obtain market share in the outsourced chip production business and grow to compete with Taiwan Semiconductor Manufacturing Co.

Tom Caulfield, CEO of GlobalFoundries, and others predict that new applications for semiconductors will result in a period of rapid demand growth.

GlobalFoundries’ stock has dropped 19% this year as part of a broader sell-off in chip-related stocks.