BrainChip Receives First Shipment of AKD1500 Chips in Silicon from Technology Partner GlobalFoundries

GlobalFoundries Unveils Key Innovations at Technology Summit 2023

Spotlight on Power Management, RF Connectivity, Intelligent and Secure Solutions

SAN JOSE, C.A., August 28, 2023 – At its annual Technology Summit beginning tomorrow, GlobalFoundries (Nasdaq: GFS), is spotlighting its differentiated technology advancements that are enabling more efficient deployment of power, more seamless connectivity and more intelligence that is driving innovation and enabling transformative products in the world’s most critical markets.

This year’s sessions will highlight GF’s ultra-low power technology platforms, RF and mmWave connectivity solutions, and localized, low-power intelligent applications with secure embedded Non-Volatile Memory technology. Attendees will be able to gain insight into how GF is helping its customers shape our world, from the solutions they pioneer to enabling the cutting-edge products they deliver.

GF’s President and CEO, Dr. Thomas Caulfield, will kick-off the event with a keynote address on how “Essential chips fuel the era of AI,” which emphasizes the transformative potential of these technologies and their significance in the rapidly evolving semiconductor landscape.

In addition, Charlie Kawwas, Chief Operating Officer of Broadcom and John Forsyth, Chief Executive Officer of Cirrus Logic, along with other leaders from the fabless semiconductor and end-markets industries will take the stage, joined by experts from the expansive electronics ecosystem, including OEM, fabless, OSAT, EDA, and IP. Together, their insights, keynote addresses, technology roadmaps, and demonstrations will showcase GF’s collaborative development and its impact, highlighting innovations tailored for automotive, IoT, smart mobile, data centers and communications infrastructure markets.

Held at the San Jose Marriott in San Jose, California, the two-day summit also introduces a new format. This year, representatives from GF’s Technology, Business, and Commercial teams are on hand to host small group meetings, facilitating deeper discussions and partnerships.

About GTS:

GF Technology Summit (GTS) 2023 is GF’s worldwide, annual series of technology-focused events. GTS brings together leaders from the commercial, business and research worlds to understand the latest technology challenges and opportunities, and partner to create the most innovative applications and solutions.

About GlobalFoundries

GlobalFoundries® (GF®) is one of the world’s leading semiconductor manufacturers. GF is redefining innovation and semiconductor manufacturing by developing and delivering feature-rich process technology solutions that provide leadership performance in pervasive high growth markets. GF offers a unique mix of design, development and fabrication services. With a talented and diverse workforce and an at-scale manufacturing footprint spanning the U.S., Europe and Asia, GF is a trusted technology source to its worldwide customers. For more information, visit www.gf.com.

Forward-looking Information

This news release may contain forward-looking statements, which involve risks and uncertainties. Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. GF undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, unless required by law. 

Media Contact:

Erica McGill
[email protected]
518-795-5240

GlobalFoundries Reports Second Quarter 2023 Financial Results

MALTA, New York, Aug. 08, 2023 (GLOBE NEWSWIRE) — GlobalFoundries Inc. (GF) (Nasdaq: GFS) today announced preliminary financial results for the second quarter ended June 30, 2023.

Key Second Quarter Financial Highlights

  • Revenue of $1,845 million.
  • Gross margin of 28.8% and adjusted gross margin(1) of 29.6%.
  • Operating margin of 14.9% and adjusted operating margin(1) of 18.3%.
  • Net income of $237 million and adjusted net income(1) of $297 million.
  • Adjusted EBITDA(1) of $668 million.
  • Cash, cash equivalents and marketable securities of $3.3 billion.

“In the second quarter, GF delivered financial results at the upper end of the guidance ranges we provided in our May earnings release” said Dr. Thomas Caulfield, president and CEO of GF. “Despite the cyclical headwinds impacting our industry and continued macroeconomic uncertainty, we delivered consistent financial performance and generated $146 million of free cash flow in the quarter, as GF’s global teams diligently managed costs, while driving differentiated solutions to meet our customers’ needs, across several critical growth markets.”

Recent Business Highlights

  • GF and Lockheed Martin announced a strategic collaboration to advance U.S. semiconductor manufacturing and innovation and to increase the security, reliability and resilience of domestic supply chains for national security systems.

  • The U.S. Department of Defense accredited GF’s advanced manufacturing facility in Malta, New York, as a Category 1A Trusted Supplier with the ability to manufacture secure semiconductors for a range of critical aerospace and defense applications.

(1) Adjusted gross profit, adjusted operating profit, adjusted net income, adjusted EBITDA and related margins are Non-IFRS measures. See “Unaudited Reconciliation of IFRS to Non-IFRS” for a detailed reconciliation of Non-IFRS measures to the most directly comparable IFRS measure. See “Financial Measures (Non-IFRS)” for a discussion of why we believe these Non-IFRS measures are useful.

Unaudited Summary Quarterly Results (in millions USD, except per share amounts and wafer shipments)</u ></strong >
        Year-over-year Sequential
  Q2’23 Q1’23 Q2’22 Q2’23 vs Q2’22 Q2’23 vs Q1’23
             
Net revenue $1,845  $1,841  $1,993  $(148)(7)% $4 %
             
Gross profit   532   515   538  $(6)(1)% $17 3%
Gross margin   28.8%  28.0%  27.0%  +180bps  +80bps
             
Adjusted gross profit(1) $546  $525  $559  $(13)(2)% $21 4%
Adjusted gross margin (1)  29.6%  28.5%  28.0%  +160bps  +110bps
             
Operating profit $275  $290  $297  $(22)(7)% $(15)(5)%
Operating margin  14.9%  15.8%  14.9%  0bps  (90)bps
             
Adjusted operating profit(1) $338  $326  $350  $(12)(3)% $12 4%
Adjusted operating margin (1)  18.3%  17.7%  17.6%  +70bps  +60bps
             
Net income $237  $254  $264  $(27)(10)% $(17)(7)%
Net income margin  12.8%  13.8%  13.2%  (40)bps  (100)bps
             
Adjusted net income(1)(2) $297  $290  $317  $(20)(6)% $7 2%
Adjusted net income margin (1)  16.1%  15.8%  15.9%  +20bps  +30bps
             
Diluted earnings per share (“EPS”) $0.43  $0.46  $0.48  $(0.05)(10)% $(0.03)(7)%
             
Adjusted diluted earnings per share</strong >(1)  $0.53  $0.52  $0.58  $(0.05)(9)% $0.01 2%
             
Adjusted EBITDA(1)(3) $668  $655  $784  $(116)(15)% $13 2%
Adjusted EBITDA margin (1)  36.2%  35.6%  39.3%  (310)bps  +60bps
             
Cash from operations $546  $479  $609  $(63)(10)% $67 14%
             
Wafer shipments (300mm equivalent) (in thousands)  573   511   630   (57)(9)%  62 12%
             
(1) Adjusted gross profit, adjusted operating profit, adjusted net income, adjusted diluted earnings per share, adjusted EBITDA, and related margins are all Non-IFRS measures. See “Unaudited Reconciliation of IFRS to Non-IFRS” section for a detailed reconciliation of Non-IFRS measures to the most directly comparable IFRS measure. See “Financial Measures (Non-IFRS)” for a discussion of why we believe these Non-IFRS metrics are useful.
 
(2) Beginning in Q4 2022, the Company revised its definition of adjusted net income to include an adjustment for restructuring charges and the associated tax impact. The change was made due to a restructuring undertaken in Q4 2022. The Company believes the revised definition provides management and investors with more useful information to evaluate the operations of our business. Adjusted net income is now defined as net income adjusted for share-based compensation expense, restructuring charges and the associated tax impact.
 
(3) Beginning in Q3 2022, the Company revised its definition of adjusted EBITDA to include an adjustment for finance income. The change was made due to the Company making an investment during Q2 2022 of approximately $1.0 billion in marketable securities. The Company believes the revised definition provides management and investors more useful information to evaluate the operations of our business. Adjusted EBITDA is now defined as net income, adjusted for the impact of finance expense, finance income, income tax expense, depreciation, amortization, share-based compensation expense, divestiture gains and associated expenses, restructuring charges, labor optimization initiatives and litigation settlement.
 
Summary of Third Quarter 2023 Outlook (unaudited in millions USD, except per share amounts)</u ></strong >(1)
 IFRS Share-based compensation Non-IFRS Adjusted(2)
Net revenue$1,825 – $1,870  
Gross Profit$485 – $527 $15- $17 $502 – $542
Gross Margin(3)</sup > (mid-point) 27.4%   28.3%
Operating Profit$227 – $287 $40 – $50 $277 – $327
Operating Margin(3) (mid-point)13.9%   16.3%
Net Income$204 – $262 $40 – $50 $254 – $302
Net Income Margin(3)</sup > (mid-point) 12.6%   15.0%
Diluted EPS$0.37 – $0.47   $0.46 – $0.54
      
(1) The guidance provided above contains forward-looking statements as defined in the U.S. Private Securities Litigation Act of 1995, and is subject to the safe harbors created therein. The guidance includes management’s beliefs and assumptions and is based on information currently available. GF has not provided a reconciliation of its Second Fiscal Quarter outlook for adjusted Non-IFRS EBITDA and related margin because estimates of all of the reconciling items cannot be provided without unreasonable efforts. Certain factors that are materially significant to GF’s ability to estimate these items are out of its control and/or cannot be reasonably predicted.
 
(2) Adjusted gross profit, adjusted operating profit, adjusted net income, and adjusted diluted EPS are non-IFRS metrics and, for purposes of the Outlook only, are defined as gross profit, operating profit, net income, and EPS before share-based compensation expense, respectively.
 
(3) Adjusted margins are non-IFRS metrics and for purposes of the Outlook only, are defined as adjusted gross profit, adjusted operating profit and adjusted net income, each divided by net revenue (using the definitions of adjusted gross profit, adjusted operating profit, and adjusted net income, in footnote (2) above, as appropriate).
 
Unaudited Consolidated Statements of Operations
  Three Months Ended
(in millions USD except for per share amounts) June 30, 2023 June 30, 2022
     
Net revenue $1,845  $1,993 
Cost of revenue  1,313   1,455 
Gross profit $532  $538 
Operating expenses:    
Research and development  106   120 
Sales, marketing, general and administrative  132   121 
Restructuring charges  19    
Total operating expenses $257  $241 
Operating profit $275  $297 
Finance income (expense), net     (19)
Other income (expense)  (10)  16 
Income tax expense  (28)  (30)
Net income $237  $264 
Attributable to:    
Shareholders of GlobalFoundries  240   264 
Non-controlling interest  (3)   
Earnings per share :    
Basic $0.43  $0.49 
Diluted $0.43  $0.48 
Shares used in earnings per share calculation:    
Basic  552   535 
Diluted  556   550 
 
Unaudited Consolidated Statements of Financial Position</strong >
(in millions USD) June 30, 2023 December 31, 2022
     
Assets:    
Cash and cash equivalents $1,832  $2,352 
Receivables, prepayments and other  1,232   1,487 
Marketable securities  955   622 
Inventories  1,504   1,339 
Current assets $5,523  $5,800 
Deferred tax assets $245  $292 
Property, plant, and equipment, net  10,789   10,596 
Marketable securities  516   372 
Other assets  742   781 
Non-current assets $12,292  $12,041 
Total assets $17,815  $17,841 
Liabilities and equity:    
Current portion of long-term debt $221  $223 
Other current liabilities  2,569   3,136 
Current liabilities $2,790  $3,359 
Non-current portion of long-term debt $2,208  $2,288 
Other liabilities  2,243   2,234 
Non-current liabilities $4,451  $4,522 
Shareholders’ equity:    
Common stock/additional paid-in capital $23,979  $23,842 
Accumulated deficit  (13,527)  (14,021)
Accumulated other comprehensive income  77   92 
Non-controlling interest  45   47 
Total liabilities and equity $17,815  $17,841 
         
Unaudited Consolidated Statements of Cash Flows
  Three Months Ended
(in millions USD) June 30, 2023 June 30, 2022
     
Cash flows from operating activities:    
Net income$237  $264 
Depreciation and amortization 340   411 
Finance expense, net and other(1) (14)  (10)
Deferred income taxes 24   22 
Other non-cash operating activities 50   23 
Net change in working capital (91)  (101)
Net cash provided by operating activities$546  $609 
    
Cash flows from investing activities:   
Purchases of property, plant, equipment, and intangible assets$(400) $(812)
Other investing activities (488)  (792)
Net cash used in investing activities$(888) $(1,604)
    
Cash flows from financing activities:   
Proceeds from issuance of equity instruments and other $9  $ 
Proceeds (repayment) of debt, net (87)  124 
Other financing activities (4)  83 
Net cash (used in) provided by financing activities $(82) $207 
Effect of exchange rate changes    (2)
Net change in cash and cash equivalents$(424) $(790)
Cash and cash equivalents at the beginning of the period 2,256   3,264 
Cash and cash equivalents at the end of the period$1,832  $2,474 
     
(1) Finance expense, net and other has been adjusted to include interest and taxes paid that were previously included in “Other non-cash operating activities.” Prior period amounts have been adjusted accordingly.
 

Unaudited Reconciliation of IFRS to Non-IFRS

  Three Months Ended
(in millions USD) June 30, 2023 March 31, 2023 June 30, 2022
       
Gross profit $532  $515  $538 
Gross profit margin  28.8%  28.0%  27.0%
Share-based compensation $14  $10  $21 
Adjusted gross profit (1) $546  $525  $559 
Adjusted gross margin(1)  29.6%  28.5%  28.0%
       
Selling, general and administrative expense $132  $111  $121 
Share-based compensation $24  $17  $24 
Adjusted selling, general and administrative expense</strong >(1)  $108  $94  $97 
       
Research and development expense $106  $109  $120 
Share-based compensation $6  $4  $8 
Adjusted research and development expense</strong >(1)  $100  $105  $112 
       
Operating profit  $275  $290  $297 
Operating profit margin  14.9%  15.8%  14.9%
Share-based compensation $44  $31  $53 
Restructuring charges $19  $5    
Adjusted operating profit(1) $338  $326  $350 
Adjusted operating profit margin(1)  18.3%  17.7%  17.6%
       
Net income $237  $254  $264 
Net income margin  12.8%  13.8%  13.2%
Share-based compensation $44  $31  $53 
Restructuring charges $19  $5    
Income tax effect(2) $(3) $  $ 
Adjusted net income(1)</sup >(3)  $297  $290  $317 
Adjusted net income margin(1)  16.1%  15.8%  15.9%
       
Diluted earnings per share $0.43  $0.46  $0.48 
Share-based compensation $0.08  $0.05  $0.10 
Restructuring charges $0.03  $0.01    
Income tax effect $(0.01) $    
Adjusted diluted earnings per share</strong >(1)  $0.53  $0.52  $0.58 
       
Net cash provided by (used in) operating activities $546     
Less: Purchase of property, plant and equipment and intangible assets $400     
Free cash flow</strong >(1)  $146     
       
(1) Adjusted gross profit, adjusted selling, general and administrative expense, adjusted research and development expense, adjusted operating profit, adjusted net income, adjusted diluted earnings per share, free cash flow and any related margins are all Non-IFRS measures. See “Financial Measures (Non-IFRS)” for a discussion of why we believe these Non-IFRS measures are useful.
 
(2) Relates to restructuring charges.
 
(3) Reflects change to adjusted net income definition discussed in more detail elsewhere in this release.
 
Unaudited Reconciliation of Net Income to Adjusted EBITDA</u ></strong >
  Three Months Ended
(in millions USD) June 30, 2023 March 31, 2023 June 30, 2022
       
Net income for the period $237  $254  $264 
Depreciation and amortization  340   343   411 
Finance expense  34   31   26 
Finance income  (34)  (32)  NA 
Income tax expense  28   23   30 
Share-based compensation  44   31   53 
Restructuring charges  19   5    
Adjusted EBITDA(1)(2) $668  $655  $784 
Adjusted EBITDA margin(2)  36.2%  35.6%  39.3%
 
(1) Reflects change to adjusted EBITDA definition discussed in more detail elsewhere in this release.
 
(2) Adjusted EBITDA and related margin are Non-IFRS measures. See “Unaudited Reconciliation of IFRS to Non-IFRS” for a detailed reconciliation of Non-IFRS measures to the most directly comparable IFRS measure. See “Financial Measures (Non-IFRS)” for a discussion of why we believe these Non-IFRS measures are useful.
 

Financial Measures (Non-IFRS)

In addition to the financial information presented in accordance with IFRS, this press release includes the following Non-IFRS metrics: adjusted gross profit, adjusted selling, general and administrative expense, adjusted research and development expense, adjusted operating profit, adjusted net income, adjusted diluted earnings per share, adjusted EBITDA, free cash flow and any related margins. We define adjusted gross profit as gross profit adjusted for share-based compensation expense. We define adjusted selling, general and administrative expense as selling, general and administrative expense adjusted for share-based compensation expense. We define adjusted research and development expense as research and development expense adjusted for share-based compensation expense. We define adjusted operating profit as profit from operations adjusted for share-based compensation expense and restructuring charges. We define adjusted net income as net income adjusted for share-based compensation expense, restructuring charges and the associated tax impact. We define adjusted diluted EPS as adjusted net income divided by the dilutive shares. We define free cash flow as cash flow provided by (used in) operating activities less purchases of property, plant and equipment and intangible assets. We define adjusted EBITDA as net income, adjusted for the impact of finance expense, finance income, income tax expense, depreciation, amortization, share-based compensation expense, divestiture gains and associated expenses, restructuring charges, labor optimization initiatives and litigation settlements.

We believe that in addition to our results determined in accordance with IFRS, these Non-IFRS measures provide useful information to both management and investors in measuring our financial performance and highlight trends in our business that may not otherwise be apparent when relying solely on IFRS measures. These Non-IFRS financial measures provide supplemental information regarding our operating performance that excludes certain gains, losses and non-cash charges that occur relatively infrequently and/or that we consider to be unrelated to our core operations. Management believes that free cash flow as a Non-IFRS measure is helpful to investors as it provides insights into the nature and amount of cash the Company generates in the period. For further information regarding these Non-IFRS measures, please refer to “Unaudited Reconciliation of IFRS to Non-IFRS” table above.

Non-IFRS financial information is presented for supplemental informational purposes only and should not be considered in isolation or as a substitute for financial information presented in accordance with IFRS. Our presentation of Non-IFRS measures should not be construed as an inference that our future results will be unaffected by unusual or nonrecurring items. Other companies in our industry may calculate these measures differently, which may limit their usefulness as a comparative measure.

Conference Call and Webcast Information

GF will host a conference call with the financial community on Tuesday, August 8, 2023 at 8:30 a.m. U.S. Eastern Time (ET) to review the Second Quarter 2023 results in detail. Interested parties may join the scheduled conference call by registering at https://register.vevent.com/register/BI977824f4c1e540208394c14fc51ef4e0.

The call will be webcast and can be accessed from the GF Investor Relations website https://investors.gf.com. A replay of the call will be available on the GF Investor Relations website within 24 hours of the actual call.

About GlobalFoundries

GlobalFoundries® (GF®) is one of the world’s leading semiconductor manufacturers. GF is redefining innovation and semiconductor manufacturing by developing and delivering feature-rich process technology solutions that provide leadership performance in pervasive high growth markets. GF offers a unique mix of design, development and fabrication services. With a talented and diverse workforce and an at-scale manufacturing footprint spanning the U.S., Europe and Asia, GF is a trusted technology source to its worldwide customers. For more information, visit www.gf.com.

Forward-looking Statements

This press release includes “forward-looking statements” that reflect our current expectations and views of future events. These forward-looking statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995 and include but are not limited to, statements regarding our financial outlook, future guidance, product development, business strategy and plans, and market trends, opportunities and positioning. These statements are based on current expectations, assumptions, estimates, forecasts, projections and limited information available at the time they are made. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall,” “outlook,” “on track,” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are subject to a broad variety of risks and uncertainties, both known and unknown. Any inaccuracy in our assumptions and estimates could affect the realization of the expectations or forecasts in these forward-looking statements. For example, our business could be impacted by geopolitical conditions such as the ongoing political and trade tensions with China and the Russia/Ukraine conflict; the market for our products may develop or recover more slowly than expected or than it has in the past; we may fail to achieve the full benefits of our current restructuring plan; our operating results may fluctuate more than expected; there may be significant fluctuations in our results of operations and cash flows related to our revenue recognition or otherwise; a network or data security incident that allows unauthorized access to our network or data or our customers’ data could damage our reputation; we could experience interruptions or performance problems associated with our technology, including a service outage; and global economic conditions could deteriorate, including due to increasing interest rates, rising inflation and any potential recession. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make. Moreover, we operate in a competitive and rapidly changing market, and new risks may emerge from time to time. You should not rely upon forward-looking statements as predictions of future events. These statements are based on our historical performance and on our current plans, estimates and projections in light of information currently available to us, and therefore you should not place undue reliance on them.

Although we believe that the expectations reflected in our statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances described in the forward-looking statements will be achieved or occur. Moreover, neither we, nor any other person, assumes responsibility for the accuracy and completeness of these statements. Recipients are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date such statements are made and should not be construed as statements of fact. Except to the extent required by federal securities laws, we undertake no obligation to update any information or any forward-looking statements as a result of new information, subsequent events, or any other circumstances after the date hereof, or to reflect the occurrence of unanticipated events. For a discussion of potential risks and uncertainties, please refer to the risk factors and cautionary statements in our 2022 Annual Report on Form 20-F, current reports on Form 6-K and other reports filed with the Securities and Exchange Commission. Copies of our SEC filings are available on our Investor Relations website, investors.gf.com, or from the SEC website, www.sec.gov.

For further information, please contact:</strong >

Investor Relations
[email protected]

Cadence, GlobalFoundries, Hoerzentrum Oldenburg and Leibniz University Hannover Collaborate to Advance Hearing Aid Technology

Ensuring the Supply of Trusted Chips for Critical Needs

by Ezra Hall
Senior Director of Aerospace and Defense business, GlobalFoundries 

GlobalFoundries (GF) recently announced its facility in Malta, New York, was accredited by the U.S. Department of Defense as a Trusted Foundry with the ability to manufacture secure semiconductors for a range of critical aerospace and defense applications. Why is this important? Read below to learn more. 

Technology use is pervasive in our daily lives, not just on a personal level but also in the critical systems and infrastructure that we may take for granted: power, water, transportation, healthcare, telecom, banking, defense and more.  

All of these end-uses depend upon semiconductor technology to function. And while advances at single-digit nanometer nodes grab most of the headlines, the reality is that most of these applications are made – and will continue to be made – using 12nm and larger nodes to deliver essential chips that serve 70% of the addressable market. Thanks to our commitment to technology innovation and differentiation, this is exactly the space GlobalFoundries (GF) specializes in, which addresses the vast majority of needs for chips used in defense and critical infrastructure applications.  

It is vital not only to protect availability of supply for these chips, but also to ensure they are designed, manufactured and tested in a trusted and secure manner to avoid the potentially nefarious introduction of security risks which could negatively impact the operation of critical systems. Chips not following this approach risk being compromised and subsequently – remotely or otherwise triggered to shut down a system or perform other damaging actions by those with ill intents. We must prevent this from happening, to protect both national and economic security. 

Thus, the electronics industry needs to make security of design, manufacturing and testing a requirement valued every bit as much as the traditional size, weight, power and cost (SWaPc) metrics. We must include security in our program requirements, budget for it and require our supply chains to deliver on the full “CIA” triad framework. That model stresses Confidentiality (protecting from disclosure), Integrity (include only what was intended, nothing else) and Availability (ensuring access to what, and when it’s needed).

A Trusted Partner With a Wide Range of Differentiated Technologies 

No one understands chip security better than GF, a longstanding partner to the U.S. Department of Defense (DoD), and the most advanced and the only at-scale U.S. Trusted Foundry. 

Trusted Foundry is a DoD designation certifying that GF meets stringent U.S. government requirements for all aspects of designing and producing classified, secure semiconductor components, both physical and digital. Trusted Foundry accreditation status enables the U.S. government to count on us as a secure source of supply and to protect all of the government’s intellectual property and designs. Trusted Foundry is the security solution today that best addresses all three factors in the CIA triad to their fullest potential.

Some advocate for the softening of Trusted Foundry requirements under the belief that it will cut costs. I see it a different way: using less-secure manufactured chips in sensitive applications will only lead to significant issues down the road, be it supply disruption due to geological, weather, or future pandemic related issues, or increasingly, the realization of geopolitical threats. Ultimately, this is a price we cannot afford. We should not let that happen. 

GF’s differentiated technologies offer features such as the ability to operate with extremely low-power draw, and/or at low- or high-temperature and other extreme environments. These features include: class-leading millimeter-wave (mmWave) communications capabilities; communicating with photons instead of electrons for extreme performance at lowest possible power, delivering advanced power-management functionality; incorporating non-volatile memory; and with the game changing ability to integrate combinations of high-performance signal processing, power, RF communications, and memory onto a system-on-a-chip (SoC). 

Instead of large, heavy power-hungry racks comprised of many boards containing many chips, these systems can be designed into one or several chips to not only perform the same functionality, but extend capabilities, range, reduce size, weight and power. That’s a game-changer, especially for the increasingly smaller and more pervasive defense applications of the future. 

Scale is Needed to Ensure Supply 

Semiconductor manufacturing is a capital-intensive industry with significant technology development, production, and ecosystem costs. For supply resiliency, manufacturing must take place at scale so that a manufacturer can develop the technologies and achieve the yields and quality required by customers and realize a sustainable business case to remain competitive. 

Take GF as an example. Headquartered in the U.S., we have a global footprint with manufacturing facilities in New York, Vermont, Germany and Singapore. Because we operate on three continents, we have three different sets of supply chains which makes us an extremely resilient supplier. In fact, throughout the pandemic, GF didn’t miss a single wafer of output. 

Moreover, our teams have woven extensive supply chain mapping and chip traceability into GF’s operations. This guaranteed assurance is already transforming automotive supply chains.  

To ensure and to fulfill the supply of secure chips needed for aerospace, defense, critical infrastructure, and other applications critical to economic and national security, and to fulfil the vision of the U.S. CHIPS and Science Act, we must increase the demand for domestically manufactured semiconductors. We have the tools we need to accomplish this, from acquisition policy to buying behaviors and market preferences, and we need to use them. 

The Way Forward: Dual-Use 

Dual-use is the concept of technologies that can be utilized both for defense and non-defense applications, a term that can be applied in a number of ways. As we know, scale is required for affordable high-yield high quality technologies, which dictates that higher volume non-defense related demand must be present. While at the same time, differentiation for defense applications is required to achieve technological superiority for defense applications.  

As such, dual-use research and development incentives must be at the center of our national technology strategy. The costly development of semiconductor technologies will only be justifiable if a foundry can leverage that technology across significant volume that defense applications realistically cannot achieve alone. Creating a platform for research and development that is secure from the start not only protects commercial products, but affords us the opportunity to extend those protections for more sensitive applications.  

As an example, think of a helicopter and an automobile, both of which have radar, cameras, control systems and other systems that function similarly. Chips for these applications can be produced in dual-use technologies to survive the proverbial “valley of death,” and at the same time, the nation can also save time and money! At GF, we have a team of experts who are building unparalleled knowledge and insights into end-market requirements, because our differentiated technologies enable us to support these requirements in ways that offer unique benefits. 

GF’s end markets are automotive; communications infrastructure and data center; home/industrial IoT (Internet of Things); smart mobile devices; and aerospace, defense, and critical infrastructure. We have structured GF’s aerospace, defense and critical infrastructure activities to create synergies in technology products that GF produces for all end markets. 

In this way, we can offer specialized aerospace, defense and critical infrastructure technology solutions built upon robust high volume commercial foundational demand. In effect, we are riding the coattails of cost-effective commercial volume production to implement specific technology features in a secure fashion. 

In so doing, we are supporting a safer, more secure world. 

Ezra Hall, based in Burlington, Vermont, is responsible for GF’s aerospace and defense business, which offers novel and strategic solutions in support of national security and critical infrastructure needs. A 39-year industry veteran, Hall is recognized for his expertise in microelectronics supply chain security. He is a GF Master Inventor with 21 U.S. patents who co-founded and co-chairs the U.S. National Defense Industry Association’s Electronics Division. 

GlobalFoundries Announces CFO Update

MALTA, N.Y., July 11, 2023 – GlobalFoundries (NASDAQ: GFS) today announced that Tim Stone and GF have agreed that he will not assume his duties as CFO for GF and will depart the company effective July 11th. David Reeder will remain as GF’s CFO through the end of the year, to support the selection of a new CFO and ensure an orderly transition to new financial leadership. 

The company’s guidance for its fiscal 2023 second quarter, provided on May 9th, remains unchanged.  

About GF 

GlobalFoundries (GF) is one of the world’s leading semiconductor manufacturers. GF is redefining innovation and semiconductor manufacturing by developing and delivering feature-rich process technology solutions that provide leadership performance in pervasive high growth markets. GF offers a unique mix of design, development, and fabrication services. With a talented and diverse workforce and an at-scale manufacturing footprint spanning the U.S., Europe and Asia, GF is a trusted technology source to its worldwide customers. For more information, visit www.gf.com

©GlobalFoundries Inc., GF, GlobalFoundries, the GF logos and other GF marks are trademarks of GlobalFoundries Inc. Or its subsidiaries. All other trademarks are the property of their respective owners. 

Forward-looking Information 

This news release may contain forward-looking statements, which involve risks and uncertainties. Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. GF undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, unless required by law. 

Media:

Laurie Kelly
GlobalFoundries
+1 518 265 4580
[email protected] 

Investor Relations:

[email protected]

GlobalFoundries Announces Conference Call to Review Second Quarter 2023 Financial Results

MALTA, N.Y., July 05, 2023 (GLOBE NEWSWIRE) — GlobalFoundries (NASDAQ: GFS) today announced that it will host a conference call on Tuesday, August 8, 2023, at 8:30 a.m. ET following the release of the company’s second quarter 2023 financial results.

Conference Call and Webcast Information

The company will host a conference call with the financial community on Tuesday, August 8, 2023, at 8:30 a.m. ET. Interested parties may join the scheduled conference call by registering here.

The company’s financial results and a webcast of the conference call will be available on GlobalFoundries’ Investor Relations website at https://investors.gf.com.

About GF

GlobalFoundries Inc. (GF) is one of the world’s leading semiconductor manufacturers. GF is redefining innovation and semiconductor manufacturing by developing and delivering feature-rich process technology solutions that provide leadership performance in pervasive high growth markets. GF offers a unique mix of design, development and fabrication services. With a talented and diverse workforce and an at-scale manufacturing footprint spanning the U.S., Europe and Asia, GF is a trusted technology source to its worldwide customers. For more information, visit www.gf.com.

©GlobalFoundries Inc. GF, GlobalFoundries, the GF logos and other GF marks are trademarks of GlobalFoundries Inc. or its subsidiaries. All other trademarks are the property of their respective owners.

For further information, please contact:
                  
[email protected]

GlobalFoundries Showcases Commitment to ESG in New 2023 Corporate Responsibility Report

by Stacey Barrick
Global Head of ESG, Labor and Employment law, and Employee Relations

Corporate Responsibility Report 2023

I am proud to share that GlobalFoundries (GF) has published its 2023 Corporate Responsibility Report. This comprehensive report details GF’s environmental, social, and governance (ESG) efforts over the past year. It highlights our company’s commitment to ESG leadership and showcases the positive outcomes driven by our global team, as we work every day to deliver GF’s mission of innovating and partnering with customers to deliver semiconductor solutions for all humanity, and guided by our vision of changing the industry that is changing the world.

GF’s Corporate Responsibility Report includes a wealth of information and demonstrates the ways that  our global team is creating value through doing the right thing. Covered topics range from our top priority of employee health, safety, and well-being, to our critical diversity, equity, inclusion, and belonging efforts. They include our commitment to resource conservation and sustainable chip manufacturing, responsible sourcing, the many ways in which GF semiconductor technology is benefitting humanity, corporate governance, employee giving, community support and engagement, and so much more.

Here are just a few examples of the information and stories you will find in the report:

  • The health and wellbeing of our global team is paramount to GF, and we achieved our goal to keep employees safe with best-in-class recordable injury rates
  • GF is benefitting from a diversity of perspectives by growing executive women and executive minority representation, and partnering with leading organizations to grow and cultivate our diverse workforce
  • GF continues to deliver on its commitment to sustainable manufacturing, and in 2022 we executed on projects resulting in the avoidance of greenhouse gas emissions, chemical use and waste generation, and savings in water and electricity use

This is the kind of work the GF team does every day. ESG and corporate responsibility are embedded in the fabric of our company, and have been for years. Along with the vital role our company plays by manufacturing the essential chips that enable nearly every important technology in our lives, GF is committed to being a world-class employer, an engaged corporate citizen, and a strong neighbor to our communities. The 2023 Corporate Responsibility Report demonstrates these efforts and outcomes in a succinct way.

As Dr. Thomas Caulfield, president and CEO of GF, Tom Caulfield says in his introduction to the report :

“All of these efforts are informed by our corporate responsibilities, which are fundamental to who we are as a company. These priorities underpin our day-to-day operations and our long-term strategic goals, and there is no process, project, or corner of our company in which our corporate responsibilities are not critical factors in our decision making and actions. Prioritizing these responsibilities makes us better as a company and enables us to better deliver on our commitments to all our stakeholders.”

I invite you to invest some time clicking through and reading GF’s 2023 Corporate Responsibility Report, to learn more about what our team has accomplished together, and our ongoing commitment to ensuring a better tomorrow for everyone.

Stacey Barrick leads Environment Social Governance, Employment Law and Employee Relations at GF.  In her role, she leads a global team that oversees GF’s sustainability strategy and programs that focus on reducing GF’s environmental impact, advance sustainable supply chains, foster diversity equity and inclusion, and build inclusive and resilient communities.  Prior to joining GF, Stacey held various senior leadership roles in Human Capital Management and Financial Counseling with Goldman Sachs.

How Do You Replace a Semiconductor in Space? 

By Deniz Civay 
Deputy Director, Aerospace and Defense, GlobalFoundries 

What does a semiconductor chip on the International Space Station have in common with a chip in your phone or car? Security, reliability, and GlobalFoundries (GF). 

GF is the most advanced semiconductor foundry in the United States with capability and accreditation to manufacture highly sensitive chips for use in defense systems on land, sea, air, and in space. Many of these chips, as well as many of the chips we manufacture for other customers in different industries, are built on GF’s 12LP platform. This technology is purpose-built to deliver high performance and power efficiency for demanding applications. 

Space certainly qualifies as a demanding application. In fact, space is the ultimate extreme environment. The low temperatures and radiation variability in space can easily cause electronics to stop functioning and fail. This can happen in a few different ways. Sometimes radiation hits the chip and causes what’s called a “single event upset.” Other times, chips fail from the long-term “total ionizing dose” that accrues on the chip.  

So back to the question in the headline: If a chip fails in space, how do you replace it? You don’t. That’s why it’s critical for these chips to be reliable, secure, and able to withstand the harsh environments of space including radiation effects and a wide range of extreme temperatures. 

The International Space Station  
Credit: NASA

Long Journey to Deep Space 

GF’s 12LP platform is a 3D FinFET technology used for many chip designs, each implementing a wide range of features and capabilities for different end uses. For space applications such as satellites, International Space Station systems, or rovers used on Mars, the chips are customized with Radiation Hardened by Design (RHBD) features. This RHBD work is done by GF ecosystem partners and other companies that focus on semiconductor design, as well as by GF customers that produce satellites and their subsystems, to ensure the chips can withstand the harsh environment of space. RHBD introduces techniques such as design redundancy with spatial positioning awareness to ensure the chip will not fail during the timeframe it’s needed. The time a chip must perform depends upon the use lifetime, for example how far out into space the chip is traveling and how long that journey will take. 

There are GF-made chips in systems in low-earth orbit (LEO), geosynchronous orbit (GEO), and deep space. More than 3,000 satellites are currently in LEO, whereas there are about 5,000 satellites further out in GEO. The further away from the Earth’s surface, the harsher the environment. GF 12LP semiconductors with RHBD are one of the few chips that meet the stringent requirements for the long journey to deep space. 

Icy cliffs at the Martain North Pole as seen by the Mars Reconnaissance Orbiter 
Credit: NASA

Dual-Use Technologies 

GF delivers high-volume manufacturing (HVM) production to achieve economies of scale. In other words, we make a lot of the same type of chip at once – a process that is much easier said than done and requires innovation, technical know-how, and a world-class team of engineers and technicians. But there are billions more AI servers, phones and cars than satellites, and trillions more chips on Earth than in space.  

So why does GF even make chips for space? And how does this work with HVM? 

We focus on what are called “dual-use” technologies for the needs of our aerospace and defense customers. GF manufactures smaller batches of chips for satellites or other applications, which other companies have customized with RHBD to make them suitable for space. We also aggressively partner with our customers and others to innovate on new ways of customizing these (pre-RHBD) chips, and adding new features, to suit the needs of larger commercial markets such as smartphones or automobiles. Dual-use technologies help ensure the U.S. has the most secure and advanced chips in satellites as well as cars, datacenters, cell phone towers, and many other technologies, with the best economics. 

Any chip’s space performance can be improved with RHBD, however some chips are better suited than others. GF has several technologies that work particularly well with RHBD – including our 12LP, 22FDX and 45CMOS platforms – and enable customers to optimize the performance, power, and size of chips to meet the needs of their specific applications. GF has many ecosystem partners that implement RHBD to create these kinds of chips, and some customers take advantage of this and use the capability to put chips in space.

Close-up of GF-made semiconductors 

As I mentioned above, GF is the most advanced semiconductor foundry in the U.S. with capability and accreditation to manufacture highly sensitive chips for use in many of the nation’s mission-critical aerospace and defense applications. GF chips are produced using the highest standard of security. The reliability of these uncompromised chips, in turn, helps to ensure U.S. advancements in space are secure. This includes the GF 12LP chips headed into the vast expanse of space, and leads us back to the original question we set out to answer: 

Q: How do you replace a semiconductor in space?  

A: You don’t. And if you use GF chips that have been designed and manufactured to weather the harsh environment and challenges of space, you won’t need to.  

Dr. Deniz Civay leads the Harsh Environment battleground at GF with the goal of ensuring the most secure onshore advanced technologies for deep space and defense products. She’s deputy director of GF’s aerospace and defense business strategy team. When she started at GF 12 years ago, she worked in R&D inventing novel technologies resulting in 10 patents and many papers. She is PMP certified and holds a Ph.D. in polymer science and engineering from the University of Massachusetts Amherst. 

Lockheed Martin and GlobalFoundries Collaborate to Advance Innovation and Resiliency of Chips for National Security

Collaboration will boost U.S. semiconductor supply chain 
for mission-critical security systems, in support of the CHIPS and Science Act

MALTA, N.Y., June 12, 2023 — Lockheed Martin (NYSE: LMT) and GlobalFoundries (Nasdaq: GFS) (GF) today announced a strategic collaboration to advance U.S. semiconductor manufacturing and innovation and to increase the security, reliability and resiliency of domestic supply chains for national security systems. This collaboration will enable Lockheed Martin to more quickly and affordably produce secure solutions that increase the competitiveness and national security of the United States. The announcement was made today at GF’s advanced manufacturing facility in upstate New York with U.S. Senate Majority Leader Charles Schumer, Lockheed Martin Chairman, President and CEO Jim Taiclet and GF President and CEO Dr. Thomas Caulfield.

The companies will leverage GF’s differentiated technology and trusted manufacturing practices to increase anti-fragility in microelectronics systems and supply chains. The collaboration will explore critical needs in semiconductor innovation and secure manufacturing across a range of advanced and next-generation chip technologies, including 3D heterogeneous integration for optimized chip packaging that improves performance; silicon photonics for low-power and high-speed data transport; and gallium nitride on silicon to help chips work at higher temperatures. The companies will also work to develop a chiplet ecosystem to produce chips more rapidly and affordably.

The collaboration between Lockheed Martin and GF directly supports the CHIPS and Science Act’s objectives of increasing traceability, provenance, and onshore production of critical semiconductor technologies to strengthen national and economic security and domestic supply chains. 

“This major new partnership between GlobalFoundries and Lockheed Martin brings together two giants of Upstate NY industry to ensure that the chips used in the technology that keep our country and our troops safe are made right here in the Capital Region. That means that more of the most complex, critical components we need to protect our national security going forward are going to be stamped ‘Made in New York’,” said Senator Schumer. “I wrote my CHIPS & Science Act to spark partnerships like this that will secure our domestic supply chains and lead to job growth and investment in places like Upstate New York. Now more than ever, we need to secure our supply chains, and make sure the chips that our military relies on are built in places like the Capital Region, not overseas, and GlobalFoundries and Lockheed Martin are leading the charge to ensure that we build America’s tech future here in Upstate NY.”

“Lockheed Martin is focused on delivering cutting-edge 21st Century Security capabilities that advance deterrence and keep our customers ahead of emerging threats,” said Jim Taiclet, chairman, president and CEO of Lockheed Martin. “This begins with securely manufactured semiconductors. We look forward to working with GlobalFoundries to help increase access to domestically produced microelectronics – a true national security imperative.”

“The GF team has been a trusted partner of the U.S. government and the aerospace and defense industry for decades,” said Dr. Thomas Caulfield, president and CEO of GF. “We are proud to collaborate with Lockheed Martin to address the growing need for a reliable supply of trusted, feature-rich semiconductors for mission-critical security systems. Today’s announcement is another example of GF’s commitment to innovation, our global manufacturing footprint, and enabling a more resilient semiconductor supply chain in the U.S. and abroad.”

GF’s manufacturing facilities in New York and Vermont have Trusted accreditation from the U.S. government and are authorized to produce secure chips for use in the nation’s most sensitive systems on land, air, sea, and in space. 

Both companies are committed to helping strengthen the supply chain for semiconductors used in critical defense systems. To further advance this shared goal, Lockheed Martin and GF will jointly pursue external funding opportunities, technology development, and collaboration with the U.S. government.

About Lockheed Martin

Headquartered in Bethesda, Maryland, Lockheed Martin Corporation is a global security and aerospace company that employs approximately 116,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. Please follow @LMNews on Twitter for the latest announcements and news across the corporation.

About GF

GlobalFoundries (GF) is one of the world’s leading semiconductor manufacturers. GF is redefining innovation and semiconductor manufacturing by developing and delivering feature-rich process technology solutions that provide leadership performance in pervasive high growth markets. GF offers a unique mix of design, development, and fabrication services. With a talented and diverse workforce and an at-scale manufacturing footprint spanning the U.S., Europe and Asia, GF is a trusted technology source to its worldwide customers. For more information, visit gf.com.

©GlobalFoundries Inc., GF, GlobalFoundries, the GF logos and other GF marks are trademarks of GlobalFoundries Inc. or its subsidiaries. All other trademarks are the property of their respective owners.

Forward-looking Information

This news release may contain forward-looking statements, which involve risks and uncertainties. Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. GF undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, unless require by law.


Media Contacts:

Lockheed Martin
Cailin Schmeer
[email protected]
301-214-3030

GlobalFoundries

Michael Mullaney
[email protected]

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