Related Party - Equity Joint Ventures

6 Months Ended

Jun. 28, 2025

Equity Method Investments and Joint Ventures [Abstract]

Related Parties - Equity Joint Ventures

Related Party — Equity Joint Ventures

ATMP Joint Ventures

The Company holds a 15% equity interest in two joint ventures (collectively, the ATMP JV) with affiliates of Tongfu Microelectronics Co., Ltd, a Chinese joint stock company. The Company has no obligation to fund the ATMP JV. The Company accounts for its equity interests in the ATMP JV under the equity method of accounting due to its significant influence over the ATMP JV. The carrying value of the Company’s investment in ATMP JV was $165 million and $149 million as of June 28, 2025 and December 28, 2024, respectively, and is recorded within Other non-current assets on the Company’s consolidated balance sheets.

The ATMP JV provides assembly, test, mark and packaging (ATMP) services to the Company. The Company’s purchases from the ATMP JV during the three and six months ended June 28, 2025 were $529 million and $1.0 billion, respectively. The Company’s purchases from the ATMP JV during the three and six months ended June 29, 2024 were $389 million and $839 million, respectively. As of June 28, 2025 and December 28, 2024, the amounts payable to the ATMP JV were $522 million and $476 million, respectively, and are included in Accounts payable on the consolidated balance sheets.

On October 9, 2024, the Company entered into a one-year term loan agreement with one of the ATMP JVs for $100 million to provide funds for the ATMP JV’s general corporate purposes. The loan bears interest, payable quarterly, at the three months term Secured Overnight Financing Rate (SOFR) plus 50 basis points. The loan receivable is included within Prepaid expenses and other current assets on the Company’s consolidated balance sheets.

During the three and six months ended June 28, 2025, the Company recorded income related to the ATMP JV of $8 million and $15 million, respectively, in Equity income in investee on its consolidated statements of operations. During the three and six months ended June 29, 2024, the Company recorded income related to the ATMP JV of $7 million and $14 million, respectively, in Equity income in investee on its consolidated statements of operations.