GlobalFoundries Reports Fourth Quarter and Fiscal Year 2022 Financial Results February 14, 2023 Record Revenue, Gross Margin, Adjusted EBITDA, and Net Income MALTA, N.Y., February 14, 2023 (GLOBE NEWSWIRE) — GlobalFoundries Inc. (GF) (Nasdaq: GFS) today announced preliminary financial results for the fourth quarter and fiscal year ended December 31, 2022. Key Fourth Quarter Financial Highlights Revenue of $2,101 million, up 14% year-over-year. Gross margin of 29.6% and adjusted gross margin of 30.1%. Net income of $668 million. Adjusted EBITDA of $821 million. Cash, cash equivalents and marketable securities of $3,346 million. Key Full Year 2022 Financial Highlights Revenue of $8,108 million, up 23% year-over-year. Gross margin of 27.6% and adjusted gross margin of 28.4%. Net income margin of 17.8% and adjusted EBITDA margin of 38.1%. “Our revenue in 2022 grew 23% year-over-year, and we delivered record gross margin and net income, making significant progress toward our long-term financial model,” said CEO Dr. Thomas Caulfield. “In the fourth quarter, the GF team continued to execute on its commitments to customers and shareholders, despite the well-publicized inventory correction. As we look to 2023, we will continue to deepen our engagements with our customers in bringing specialty and differentiated solutions to market.” Recent Business Highlights GF and General Motors jointly announced that General Motors has entered into a long-term agreement with GF to secure a capacity corridor in our advanced Fab in Upstate NY for GM’s U.S. supply chain. This first-of-its-kind, multi-year agreement brings a critical process to the U.S. and supports GM’s strategy to reduce the number of unique chips needed to power increasingly complex and tech-laden vehicles. GF announced that it has acquired Renesas Electronics Corporation’s proprietary and production-proven Conductive Bridging Random Access Memory (CBRAM) Technology, a low power memory solution designed to enable a range of applications in home and industrial IoT and smart mobile devices. The transaction further strengthens GF’s memory portfolio and extends its roadmap of embedded nonvolatile memory solutions that is easy to integrate into other technology nodes. GF completed the sale of its East Fishkill, NY, facility to onsemi, on December 31, 2022, for a final purchase price of $406m. The deal enables GlobalFoundries to further optimize our assets globally and intensify our investments in the differentiated technologies that fuel our growth while securing a long-term future for the East Fishkill facility and its employees. Unaudited Summary Quarterly Results (in millions USD, except per share amounts and wafer shipments) Year-over-year Sequential Q4’22 Q3’22 Q4’21 Q4’22 vs Q4’21 Q4’22 vs Q3’22 Net revenue $ 2,101 $ 2,074 $ 1,847 $ 254 14 % $ 27 1 % Gross profit 622 610 384 $ 238 62 % $ 12 2 % Gross margin 29.6 % 29.4 % 20.8 % +880bps +20bps Adjusted gross profit(1) $ 633 $ 621 $ 397 $ 236 59 % $ 12 2 % Adjusted gross margin 30.1 % 29.9 % 21.5 % +860bps +20bps Operating profit $ 288 $ 357 $ 87 $ 201 231 % $ (69 ) (19 )% Operating margin 13.7 % 17.2 % 4.7 % +900bps (350)bps Adjusted operating profit(1) $ 425 $ 389 $ 142 $ 283 199 % $ 36 9 % Adjusted operating margin 20.2 % 18.8 % 7.7 % +1,250bps +140bps Net income(2) $ 668 $ 336 $ 43 $ 625 1,453 % $ 332 99 % Net income margin 31.8 % 16.2 % 2.3 % +2,950bps +1,560bps Adjusted net income(1)(2)(3) $ 800 $ 368 $ 98 $ 702 716 % $ 432 117 % Adjusted net income margin 38.1 % 17.7 % 5.3 % +3,280bps +2,040bps Diluted earnings per share (“EPS”) $ 1.21 $ 0.61 $ 0.08 $ 1.13 1,413 % $ 0.60 98 % Adjusted diluted earnings per share(1) $ 1.44 $ 0.67 $ 0.18 $ 1.26 700 % $ 0.77 115 % Adjusted EBITDA(1)(4) $ 821 $ 793 $ 584 $ 237 41 % $ 28 4 % Adjusted EBITDA margin 39.1 % 38.2 % 31.6 % +750bps +90bps Cash from operations $ 491 $ 679 $ 1,148 $ (657 ) (57 )% $ (188 ) (28 )% Wafer shipments (300mm equivalent) (in thousands) 580 637 622 (42 ) (7 )% (57 ) (9 )% (1) Adjusted gross profit, adjusted operating profit, adjusted net income, adjusted diluted earnings per share, and adjusted EBITDA are adjusted non-IFRS metrics; please see the reconciliation of IFRS to adjusted non-IFRS metrics in the section “Unaudited Reconciliation of IFRS to Adjusted non-IFRS” below. (2) Includes the gain on sale of our EFK business in December 2022. (3) Beginning in Q4 2022, the Company has 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 (loss) is now defined as net income (loss) adjusted for share-based compensation expense, restructuring charges and the associated tax impact. (4) Beginning in Q3 2022, the Company has 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 (loss), adjusted for the impact of finance expense, finance income, income tax expense, depreciation, amortization, share-based compensation expense, transaction gains and associated expenses, restructuring charges, labor optimization initiatives and litigation settlement. Unaudited Summary Annual Results (in millions USD, except per share amounts and wafer shipments) Year-over-year FY2022 FY2021 FY22 vs FY21 Net revenue $ 8,108 $ 6,585 $ 1,523 23 % Gross profit 2,239 $ 1,013 $ 1,226 121 % Gross margin 27.6 % 15.4 % +1,220bps Adjusted gross profit(1) $ 2,303 $ 1,068 $ 1,235 116 % Adjusted gross margin 28.4 % 16.2 % +1,220bps Operating profit (loss) $ 1,167 $ (60 ) $ 1,227 2,045 % Operating margin 14.4 % (0.9 )% +1,530bps Adjusted operating profit(1) $ 1,443 $ 168 $ 1,275 759 % Adjusted operating margin 17.8 % 2.6 % +1,520bps Net income (loss)(2) $ 1,446 $ (254 ) $ 1,700 669 % Net income margin 17.8 % (3.9 )% +2,170bps Adjusted net income (loss)(1)(2)(3) $ 1,717 $ (26 ) $ 1,743 6,704 % Adjusted net income(loss) margin 21.2 % (0.4 )% +2,160bps Diluted EPS $ 2.62 $ (0.49 ) $ 3.11 635 % Adjusted diluted earnings per share(1) $ 3.11 $ (0.05 ) $ 3.16 6,320 % Adjusted EBITDA(1)(4) $ 3,088 $ 1,848 $ 1,240 67 % Adjusted EBITDA margin 38.1 % 28.1 % +1,000bps Cash from operations $ 2,624 $ 2,839 $ (215 ) 8 % Wafer shipments (300mm equivalent) (in thousands) 2,472 2,374 98 4 % (1) Adjusted gross profit, adjusted operating profit, adjusted net income, adjusted diluted earnings per share, and adjusted EBITDA are adjusted non-IFRS metrics; please see the reconciliation of IFRS to adjusted non-IFRS metrics in the section “Unaudited Reconciliation of IFRS to Adjusted non-IFRS” below. (2) Includes the gain on sale of our EFK business in December 2022. (3) Beginning in Q4 2022, the Company has 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 (loss) is now defined as net income (loss) adjusted for share-based compensation expense, restructuring charges and the associated tax impact. (4) Beginning in Q3 2022, the Company has 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 (loss), adjusted for the impact of finance expense, finance income, income tax expense, depreciation, amortization, share-based compensation expense, transaction gains and associated expenses, restructuring charges, labor optimization initiatives and litigation settlement. Summary of First Quarter 2023 Outlook (unaudited in millions USD, except per share amounts)(1) IFRS Share-based compensation Non-IFRS Adjusted Net revenue $1,810 – $1,850 — — Gross Profit $481 – $512 $15- $17 $498 – $527 Gross Margin (mid-point) 27.1% 28.0% Operating Profit $233 – $282 $40 – $50 $283 – $322 Operating Margin (mid-point) 14.1% 16.5% Net Income $202 – $257 $40 – $50 $252 – $297 Net Income Margin (mid-point) 12.5% 15.0% Diluted EPS $0.36 – $0.46 $0.45 – $0.53 Adjusted EBITDA(2) NA $667 – $722 Adj. EBITDA Margin (mid-point) 37.9% (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 First 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)Reflects change to adjusted EBITDA definition discussed in more detail elsewhere in this release. Unaudited Consolidated Statements of Operations Three Months Ended Year Ended (in millions USD, except for per share amounts) December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Net revenue $ 2,101 $ 1,847 $ 8,108 $ 6,585 Cost of revenue 1,479 1,463 5,869 5,572 Gross profit $ 622 $ 384 $ 2,239 $ 1,013 Operating expenses: Research and development 110 130 482 478 Sales, marketing, general and administrative 130 167 496 595 Restructuring charges 94 — 94 — Total operating expenses $ 334 $ 297 $ 1,072 $ 1,073 Operating profit (loss) $ 288 $ 87 $ 1,167 $ (60 ) Finance expense, net (2 ) (26 ) (60 ) (108 ) Other income (expense) (13 ) 8 22 (8 ) Gain on sale of a business 403 403 Income tax expense (8 ) (26 ) (86 ) (78 ) Net income (loss) $ 668 $ 43 $ 1,446 $ (254 ) Attributable to: Shareholders of GlobalFoundries 668 44 1,448 (250 ) Non-controlling interest — (1 ) (2 ) (4 ) Earnings (Loss) per share : Basic $ 1.22 $ 0.08 $ 2.69 $ (0.49 ) Diluted $ 1.21 $ 0.08 $ 2.62 $ (0.49 ) Shares used in earnings per share calculation: Basic 546 522 539 506 Diluted 554 540 552 506 Unaudited Consolidated Statements of Financial Position (in millions USD) December 31, 2022 December 31, 2021 Assets: Cash and cash equivalents $ 2,352 $ 2,939 Receivables, prepayments and other 1,487 1,231 Marketable securities 622 — Inventories 1,339 1,121 Current assets $ 5,800 $ 5,291 Deferred tax assets $ 292 $ 353 Property, plant, and equipment, net 10,596 8,713 Marketable securities 372 — Other assets 781 671 Non-current assets $ 12,041 $ 9,737 Total assets $ 17,841 $ 15,028 Liabilities and equity: Current portion of long-term debt $ 223 $ 297 Other current liabilities 3,136 2,866 Current liabilities $ 3,359 $ 3,163 Non-current portion of long-term debt $ 2,288 $ 1,716 Other liabilities 2,234 2,116 Non-current liabilities $ 4,522 $ 3,832 Shareholders’ equity: Common stock/additional paid-in capital $ 23,842 $ 23,498 Accumulated deficit (14,021 ) (15,469 ) Accumulated other comprehensive (loss) 92 (54 ) Non-controlling interest 47 58 Total liabilities and equity $ 17,841 $ 15,028 Unaudited Consolidated Statements of Cash Flows Three Months Ended Year Ended (in millions USD) December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Cash flows from operating activities: Net income (loss) $ 668 $ 43 $ 1,446 $ (254 ) Depreciation and amortization 409 419 1,623 1,619 Gain on the sale of a fabrication facility (403 ) — (403 ) — Finance expense, net and other(1) (3 ) (6 ) 1 1 Deferred income taxes 30 40 82 93 Other non-cash operating activities 16 23 50 150 Net change in working capital (226 ) 629 (175 ) 1,230 Net cash provided by operating activities $ 491 $ 1,148 $ 2,624 $ 2,839 Cash flows from investing activities: Purchases of property, plant, equipment, and intangible assets $ (991 ) $ (649 ) $ (3,059 ) $ (1,766 ) Other investing activities (60 ) 23 (999 ) 316 Net cash used in investing activities $ (1,051 ) $ (626 ) $ (4,058 ) $ (1,450 ) Cash flows from financing activities: Proceeds from issuance of equity instruments $ 12 $ 1,444 $ 168 $ 1,444 Repayments of shareholder loan — — — (568 ) Proceeds (repayment) of debt, net 255 (72 ) 581 (343 ) Other financing activities 93 27 93 117 Net cash provided by financing activities $ 360 $ 1,399 $ 842 $ 650 Effect of exchange rate changes 11 (1 ) 5 (8 ) Net change in cash and cash equivalents $ (189 ) $ 1,920 $ (587 ) $ 2,031 Cash and cash equivalents at the beginning of the period 2,541 1,019 2,939 908 Cash and cash equivalents at the end of the period $ 2,352 $ 2,939 $ 2,352 $ 2,939 (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 Adjusted Non-IFRS Three Months Ended Year Ended (in millions USD) December 31, 2022 September 30, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Gross profit $ 622 $ 610 $ 384 $ 2,239 $ 1,013 Gross profit margin 29.6 % 29.4 % 20.8 % 27.6 % 15.4 % Share based compensation $ 11 $ 11 $ 13 $ 64 $ 55 Adjusted gross profit $ 633 $ 621 $ 397 $ 2,303 $ 1,068 Adjusted gross margin 30.1 % 29.9 % 21.5 % 28.4 % 16.2 % Operating profit (loss) $ 288 $ 357 $ 87 $ 1,167 $ (60 ) Operating profit margin 13.7 % 17.2 % 4.7 % 14.4 % (0.9 )% Share based compensation $ 43 $ 32 $ 55 $ 182 $ 228 Restructuring charges(1) $ 94 — — $ 94 — Adjusted operating profit $ 425 $ 389 $ 142 $ 1,443 $ 168 Adjusted operating profit margin 20.2 % 18.8 % 7.7 % 17.8 % 2.6 % Net income (loss)(2) $ 668 $ 336 $ 43 $ 1,446 $ (254 ) Net income (loss) margin 31.8 % 16.2 % 2.3 % 17.8 % (3.9 )% Share based compensation $ 43 $ 32 $ 55 $ 182 $ 228 Restructuring charges(1) $ 94 — — $ 94 — Income tax effect(3) $ (5 ) $ — $ — $ (5 ) $ — Adjusted net income (loss)(4) $ 800 $ 368 $ 98 $ 1,717 $ (26 ) Adjusted net income (loss) margin 38.1 % 17.7 % 5.3 % 21.2 % (0.4 )% Diluted earnings (loss) per share $ 1.21 $ 0.61 $ 0.08 $ 2.62 $ (0.49 ) Share based compensation $ 0.07 $ 0.06 $ 0.10 $ 0.33 $ 0.44 Restructuring charges(1) $ 0.17 — — $ 0.17 — Income tax effect $ (0.01 ) — — $ (0.01 ) — Adjusted diluted earnings (loss) per share $ 1.44 $ 0.67 $ 0.18 $ 3.11 $ (0.05 ) (1) Includes $3.1 million of share based compensation in Q4 2022. (2)Includes the gain on sale of our EFK business in December 2022. (3) Relates to restructuring charges in Q4 2022. (4) Reflects change to adjusted net income (loss) definition discussed in more detail elsewhere in this release. Unaudited Reconciliation of Net Income to Adjusted EBITDA Three Months Ended Year Ended (in millions USD) December 31, 2022 September 30, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Net income for the period $ 668 $ 336 $ 43 $ 1,446 $ (254 ) Depreciation and amortization 409 395 419 1,623 1,619 Finance expense 28 28 28 111 114 Finance income (26 ) (17 ) NA (51 ) NA Income tax expense 8 19 26 86 78 Share based compensation 43 32 55 182 228 Restructuring charges(1) 94 — — 94 — Labor optimization initiatives — — 5 — 17 (Gains) on transactions, legal settlements and transaction expenses(2) (403 ) — 8 (403 ) 46 Adjusted EBITDA(3) $ 821 $ 793 $ 584 $ 3,088 $ 1,848 Adjusted EBITDA margin 39.1 % 38.2 % 31.6 % 38.1 % 28.1 % (1) Includes $3.1 million of share-based compensation in Q4 2022. (2)Activity for the year ended December 31, 2022, relates to the gain on sale of our EFK business. (3)Reflects change to adjusted EBITDA definition discussed in more detail elsewhere in this release. Adjusted Financial Measures (Non-IFRS) In addition to the financial information presented in accordance with IFRS, this press release includes the following adjusted non-IFRS metrics: adjusted gross profit, adjusted operating profit, adjusted net income (loss), adjusted diluted earnings (loss) per share and adjusted EBITDA. We define adjusted gross profit as gross profit 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 (loss) as net income (loss) adjusted for share-based compensation expense, restructuring charges and the associated tax impact. We define adjusted diluted EPS as adjusted net income (loss) divided by the dilutive shares. We define adjusted EBITDA as net income (loss), adjusted for the impact of finance expense, finance income, income tax expense, depreciation, amortization, share-based compensation expense, transaction 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 adjusted 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 adjusted 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. For further information regarding these non-IFRS measures, please refer to “Unaudited Reconciliation of IFRS to Adjusted Non-IFRS” table above. Adjusted 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 adjusted 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, February 14, 2022 at 8:30 a.m. U.S. Eastern Time (ET) to review the Fourth Quarter and Full Year 2022 results in detail. Interested parties may join the scheduled conference call by registering at https://register.vevent.com/register/BIb7c5c31960b748cb82f3624738c04f6d 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 the COVID-19 pandemic and supply chain disruptions due to the Russia/Ukraine conflict and actions taken in response to such events; the market for our products may develop 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 2021 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: Investor Relations [email protected]
GlobalFoundries and GM Announce Long-Term Direct Supply Agreement for U.S. Production of Semiconductor Chips February 9, 2023 MALTA, N.Y. and DETROIT, Mich. — February 9, 2023 — General Motors Co. (NYSE: GM) and GlobalFoundries (NASDAQ: GFS) (GF) today announced a strategic, long-term agreement establishing a dedicated capacity corridor exclusively for GM’s chip supply. Through this first-of-its-kind agreement, GF will manufacture for GM’s key chip suppliers at GF’s advanced semiconductor facility in upstate New York bringing a critical process to the U.S. This agreement supports GM’s strategy to reduce the number of unique chips needed to power increasingly complex and tech-laden vehicles. With this strategy, chips can be produced in higher volumes and are expected to offer better quality and predictability, maximizing high value content creation for the end customer. Semiconductors are the foundation of the technologies that are powering the electrification, autonomous driving and connectivity of the auto industry, and they have been center stage in the global chip shortage that has impacted automakers the last couple of years. “We see our semiconductor requirements more than doubling over the next several years as vehicles become technology platforms,” said Doug Parks, GM executive vice president of Global Product Development, Purchasing and Supply Chain. “The supply agreement with GlobalFoundries will help establish a strong, resilient supply of critical technology in the U.S. that will help GM meet this demand, while delivering new technology and features to our customers.” “At GF we are committed to working with our customers in new and innovative ways to best address the challenges of today’s global supply chains,” said Dr. Thomas Caulfield, president and CEO of GF. “GF will expand its production capabilities exclusively for GM’s supply chain, enabling us to strengthen our partnership with the automotive industry and New York State, while further accelerating automotive innovation with U.S.-based manufacturing for a more resilient supply chain.” “This first of its kind agreement between GlobalFoundries and General Motors is going to drive the Capital Region economy forward and ensure Upstate New York remains in the driver’s seat as one of the nation’s leading hubs for semiconductor manufacturing that is so critical to the supply chain of the auto industry. I have long said that Upstate New York’s semiconductor corridor will be a major engine powering America’s technological future, and now ‘Made in New York’ chips will help jumpstart the next generation of vehicles for GM across the country,” said U.S. Senate Majority Leader Charles Schumer. “Thanks to my CHIPS and Science Act, we are bringing manufacturing back to our country and America’s supply chains are being secured, creating good-paying jobs here in Upstate New York, not overseas. This partnership is yet another example that our nation’s future will be built in Upstate New York, with the Capital Region as a global center for the future of the microchip industry.” New York Governor Kathy Hochul said: “We’re making New York State not only the semiconductor capital of the country — but of the globe. This agreement will help to further establish New York State as a major hub for semiconductor manufacturing. With our nation-leading Green CHIPS legislation and the new Governor’s Office of Semiconductor Expansion, Management, and Integration, we are helping businesses like GM and GlobalFoundries expand the chips manufacturing ecosystem in our state, creating jobs and opportunities for generations to come.” GF is responding to the global demand for semiconductors through a series of strategic long-term agreements with existing and new customers and simultaneously expanding global capacity to meet customer demand in partnership with federal and local governments. Supportive policies like the bipartisan CHIPS and Science Act are encouraging the onshoring of semiconductor production and reestablishing the U.S. as a global leader of this critical technology. ### About General Motors (NYSE:GM) is a global company focused on advancing an all-electric future that is inclusive and accessible to all. At the heart of this strategy is the Ultium battery platform, which powers everything from mass-market to high-performance vehicles. General Motors, its subsidiaries and its joint venture entities sell vehicles under the Chevrolet, Buick, GMC, Cadillac, Baojun and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety and security services, can be found at https://www.gm.com. 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 require by law. Media Contacts: Dan Flores GM Communications[email protected] 313-418-2374 GF Erica McGill[email protected] 518-795-5240
GlobalFoundries Acquires Renesas’ Non-Volatile Resistive RAM Technology to Proliferate IoT and 5G Applications February 9, 2023 Technology acquisition expands GF’s portfolio and differentiated roadmap while accelerating the commercialization of memory solutions MALTA, N.Y., February 9, 2023 – GlobalFoundries (Nasdaq: GFS) (GF) today announced that it has acquired Renesas Electronics Corporation (Renesas)’s proprietary and production proven Conductive Bridging Random Access Memory (CBRAM) technology, a low power memory solution designed to enable a range of applications in home and industrial IoT and smart mobile devices. The transaction further strengthens GF’s memory portfolio and extends its roadmap of embedded non-volatile memory (NVM) solutions by adding another reliable, customizable embedded memory solution that is relatively easy to integrate into other technology nodes. Specifically, this technology will enable customers to further differentiate their SoC designs and advance a new generation of secure and intelligent devices. “We’re committed to differentiating our technology portfolio to be the foundation of our customers’ energy efficient IoT applications today and for decades to come,” said Mike Hogan, chief business officer of GF. “With the acquisition of this innovative memory technology, GF is now playing an essential role in accelerating development of NVM solutions which will enable our customers to design the next generation of intelligent and connected devices. CBRAM technology unleashes a new paradigm of performance and ultra-low energy use, enabling a wide range of applications, from wearable devices to smartphones, to extend the time between battery charges from hours to weeks to years in specific use cases.” CBRAM’s low power consumption, high read/write speeds, reduced manufacturing costs and tolerance for harsh environments make it particularly suitable for consumer, medical, and select industrial applications. In 2020, GF entered into a licensing agreement with Dialog Semiconductor, which was acquired by Renesas in 2021, to offer its CBRAM technology as an embedded, NVM option. Today, CBRAM is being qualified on the company’s 22FDX® platform, with plans to extend it to other platforms. 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 require by law. Media Contact: Erica McGill[email protected] +1-518-795-5240
GF Raises the Bar for Sustainability, Efficiency with Expansion in Singapore January 12, 2023 by HanBin Lim In today’s world, a semiconductor fab’s performance isn’t only measured by wafer output and yields, but also by how efficiently and sustainably it uses natural resources, and how effectively it minimizes the impacts of manufacturing on its neighborhood. Nowhere are those considerations more important than on the small island nation of Singapore, which is one of the most densely populated nations and has a limited supply of water and other natural resources. GlobalFoundries (GF) has long operated in Singapore, benefitting from the nation’s skilled and dedicated workforce, forward-thinking policies of the government, outstanding universities, and strategic location. Because of these advantages, and thanks to GF Singapore’s world-class team and operational performance, GF is in the midst of a significant expansion on our Singapore campus. We broke ground on the expansion in July 2021, and a year later moved the first production tools into the new building. The new expansion will be GF’s most advanced semiconductor fab in Singapore, and state-of-the-art environmental performance and sustainable operation have been priorities from the very start of its design process. They are essential, not only because GF is a large, prominent company with diverse stakeholders who expect nothing less than excellent performance, but also because our campus is adjacent to highly populated residential areas. In fact, many of our employees reside nearby in the town of Woodlands. Among the major design elements that will make this performance possible are innovative water solutions enabling a high level of water recycling and reuse; new abatement technologies that can much more effectively remove greenhouse gases from our exhaust; and the complete replacement of fossil fuel burning boilers with electric heat pumps. The new building is also solar-ready so that we can reduce the use of fossil fuels in our electricity supply. The necessary cabling, switch rooms, inverters and other required infrastructure have been designed into the facilities, and once production tools have all been installed in the facility, the rooftop solar panels will be put in place and connected. Reusing and Recycling Water Water conservation is a key concern in Singapore, and once complete the Singapore expansion will be GF’s most water-efficient fab. Taking a long-term perspective, the new facility even features the space and flexibility needed to enable future advances in water technology and incorporate these future systems into the operation of the fab. GF’s water journey in Singapore is more than a decade long and we continue to lessen our facility’s impact on our country’s limited water resources. One way we are doing that is with rainwater-collection systems to capture the rain so that we can use it onsite. While rainwater isn’t potable, it’s suitable for such tasks as flushing toilets and washing floors. We are also focusing on wastewater treatment, going above and beyond what Singapore regulations require. For example, we have technology and processes that are new to GF’s Singapore fabs, which eliminate certain chemicals from the new fab’s wastewater. This not only reduces our potential impact on downstream water treatment systems, but because we are part of the local community here and want to be a good neighbor to our community. Treating the Air for Lower Greenhouse Gases At the fab expansion, we are installing a new generation of abatement systems which can much more effectively treat the greenhouse gases emitted from our manufacturing operations. This state-of-the-art capability enables our Singapore site to substantially reduce its overall emissions, even as we expand our capacity, in line with GF’s Journey to Zero Carbon goal. We are also building a thermal oxidizer system to treat volatile organic compounds (VOCs) in the exhaust, reducing the concentration of any VOCs by 90–99.5% and minimizing the impact of the new expansion on neighboring communities. Electrification and Phasing Out Fossil Fuels To further enhance the environmental performance of the new fab is to electrify wherever possible. We are replacing fossil-fuel-burning combustion boilers with electricity-driven heat pumps to heat water for manufacturing operations, and using local on-demand water heaters for other needs. Not only does this eliminate any exhaust smoke emitted into the air, it is also much more energy-efficient, decreasing overall energy demand and providing an avenue for our hot water needs to be rigorously optimized. The Human Dimension As important as all of this work is, it also has a human dimension which transcends the technical details. The APAC Environmental Team is relatively young for our industry, with an average age of about 30 years old. The way we see it, we aren’t just building a fab to meet today’s needs and requirements, we’re building a fab for the future. This fab is made to beat tomorrow’s challenges and to last beyond the duration of our careers. So our challenge, or rather our opportunity, is to build this fab not just according to today’s rules, but according to our vision of the future. HanBin Lim is an Environmental Manager for GF in the APAC region. He has a Bachelor’s in Chemical Engineering from National University of Singapore, and also leads the global Circularity Work Group in SEMI.
GlobalFoundries Announces Conference Call to Review Fourth Quarter and Full-Year 2022 Financial Results January 6, 2023 MALTA, N.Y., January 6, 2023 (GLOBE NEWSWIRE) — GlobalFoundries (NASDAQ: GFS) (GF) today announced that it will host a conference call on Tuesday, February 14, 2023, at 8:30 a.m. ET following the release of the company’s fourth quarter and full-year 2022 financial results. Conference Call and Webcast Information The company will host a conference call with the financial community on Tuesday, February 14, 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 GF’s 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]
Looking Back at 2022: Innovation, Differentiation, and Partnership at GF December 22, 2022 As 2022 draws to a close, GlobalFoundries® (GF®) concludes its first full year as a publicly traded company. Foundry Files takes a look back at key GF news, announcements and themes from 2022. Recognition for ESG and Corporate Responsibility Throughout 2022 GF received several awards and ratings for our environmental, sustainability, and governance (ESG) efforts, the latest recognitions of our commitment to corporate responsibility. We were honored to receive an Environmental Merit Award from the U.S. Environmental Protection Agency (EPA) for conservation efforts at our facility in Essex Junction, Vermont. In addition, both our Vermont site and our Malta, New York, site received Most Valuable Pollution Prevention awards from the National Pollution Prevention Roundtable. GF was also named to Newsweek’s “America’s Most Responsible Companies 2023” list, received a “Low Risk” ESG rating from Morningstar Sustainalytics, and recognized for “Prime” corporate ESG performance by rating agency ISS with a rank in the top 10% of companies in the semiconductor industry. As John Toy, chief of ethics and sustainability at GF, said: “We recognize there is still much work to be done. Just as the chips we manufacture are vital to the innovations that are leading to a cleaner, healthier future, we are committed to minimizing our impact on the environment, driving positive change, and creating value through corporate responsibility.” Closer Partnership with the U.S. Government GF is proud to be a longstanding partner and supplier to the U.S. government, and over the year we saw this relationship continue to deepen. In October 2022, GF and U.S. Senator Patrick Leahy announced the award of $30 million in federal funding to advance the development and production of next-generation gallium nitride (GaN) on silicon semiconductors at our manufacturing facility in Essex Junction, Vermont. The new award moves GF and its Vermont site closer to the large-scale production of GaN chips, which have a unique ability to handle significant heat and power levels. Thanks to this ability, GaN chips are positioned to enable game-changing performance and efficiency for smartphones, electric vehicles, power grids, and many other applications. At the event to announce the funding, Sen. Leahy said: “This funding is an investment in U.S. leadership in improved technology for chips that connect everything around us and power our handheld devices—with GlobalFoundries and Vermonters leading the way.” Earlier in the year, GF and the U.S. Department of Defense announced a $117 million agreement for GF to provide a strategic supply of U.S.-made semiconductors critical to national security systems. These chips, to be securely manufactured at GF’s facility in Malta, New York, will be used in some of the nation’s most sensitive defense and aerospace applications. Click here to read more. U.S. CHIPS and Science Act Semiconductors made headline news throughout 2022, and a major focal point was the development, progress, and passing of the U.S. CHIPS and Science Act. GF was a vocal supporter of the legislation. On Tuesday, August 9, U.S. President Joe Biden signed the $52+ billion CHIPS and Science of 2022 into law. GF CEO Dr. Thomas Caulfield attended the signing ceremony on behalf of GF. The law will have a profound impact on the U.S. semiconductor industry for years to come. In his remarks, President Biden cited GF’s new agreement with Qualcomm to supply an additional $4.2 billion in U.S-made chips, to be manufactured at our facility in Malta, New York. The announcement was made a day earlier, coinciding with a CEO summit in Washington co-hosted by GF, Ford, and Applied Materials. The summit brought together CEOs and leaders from across the semiconductor supply chain to discuss U.S. technology leadership, competitiveness, supply chains, national security, and more. Click here to read a Reuters report on the summit. Closing out the historic week for U.S. semiconductor manufacturing, GF was proud to join New York Governor Kathy Hochul, Senate Majority Lead Chuck Schumer, Congressman Paul Tonko and others in Albany for the signing of New York’s Green CHIPS legislation. Leadership and Partnership in Europe In July 2022, GF and STMicroelectronics announced a partnership to create a new, jointly-operated 300mm semiconductor manufacturing facility in Crolles, France, to support the demand for chips from customers in Europe and across the globe. GF CEO Dr. Thomas Caulfield and ST CEO Jean-Marc Chery announced the partnership together in Crolles, alongside President of France Emmanuel Macron and other officials. ST and GF will receive significant financial support from the State of France for the new facility, which will be built as an expansion of ST’s existing facility in Crolles and leverage the site’s infrastructure. Through the agreement, GF and STMicroelectronics are committed to building manufacturing capacity for chips used in the automotive and industrial markets, as well as Internet of Things and communication infrastructure applications. With a focus on our differentiated 22FDX platform, which has shipped more than one billion chips, the new facility in Crolles will expand GF’s presence within Europe’s dynamic technology ecosystem while reinforcing our position as the leading semiconductor foundry in Europe. Read the article “Chip Giants to Build Factory in France as Global Supply Race Rolls On” from The Wall Street Journal, as well as news coverage from Financial Times, Agency France-Press, Reuters, and EETimes. First Tool-In at Singapore Expansion Moving the first manufacturing tool into a new facility is always an exciting moment for a chipmaker. In June 2022, GF we celebrated the arrival of the first tool at the newest facility on our Singapore campus. The milestone was reached only one year after breaking ground on the first phase of our Singapore expansion, and was achieved in partnership Singapore Economic Development Board and co-investments from committed customers. In a ceremony at the newly constructed building, GF leaders were joined by Singapore officials, and executives from Lam Research, Exyte, and many other key partners and suppliers. Together they watched as the first tool — a market-leading etch tool made by Lam Research — was moved into GF’s newly commissioned cleanroom. The milestone brought GF closer to expanded manufacturing capacity at our Singapore site, and fulfilling global demand in the marketplace for GF-made chips used in automobiles, smartphones, wireless connectivity, internet of things (IoT) devices, and other applications. Click here to watch GF CEO Dr. Thomas Caulfield discuss the first tool-in with CNBC, and click here to watch a video of the GF’s Singapore Expansion First Tool-In Event. Read news coverage from The Straits Times here. Building a Culture of Diversity and Inclusion GF knows the best ideas come from a diverse team being inclusive, and that our success rests on empowering employees to bring their whole person — with all of their unique talents and distinctive qualities — to our company. Throughout 2022, we further leaned into our strategic partnerships with AfroTech, FairyGodboss, Society of Hispanic Engineers, Society of Women Engineers, iRelaunch, and other organizations to create new opportunities and expand outreach in our industry and beyond. For example, read this blog article to learn more about the ways GF’s Global Journey Re-Entry Program has provided individuals with an extra layer of support when rejoining the workforce after a voluntary break, such as raising a family, serving in the military, caring for a loved one, pursuing education, or other reasons. For further reading on diversity, equity, and inclusion at GF in 2022, check out: Inspiring the Next Generation of Women in Manufacturing: Q&A with 2022 STEP Ahead Award Winner Sylvia Chan Celebrating Black Success and Development at GF First European Network Meeting of Female GlobalFoundries Employees Pride@GF represents GF at the Burlington Pride Parade GlobalFoundries signs ‘Partnership for Your Success’ (PaYS) agreement with Army Connecting the World with GF Connex GF continues to lead the way in radio frequency (RF) innovations, and in May 2022 we announced GF Connextm — our feature-rich RF portfolio designed for next-gen wireless connectivity. We’re collaborating with industry leaders like Broadcom, Fujikura, MediaTek, Orca Systems, Skyworks and others to address varied RF needs across a range of applications. GF Connex products are pervasive in daily life. From smartphones that stay connected longer on a single charge, to cellular and satellite communications that deliver more reliable connections. From innovative and power-efficient Internet of Things devices, to more responsive, extended range, high resolution imagery for more powerful and sensitive automotive radars. Our GF Connex portfolio exemplifies our feature-rich approach: we work in lockstep with our customers to develop innovative process features that enhance and elevate capabilities for RF communications, efficient conversion and delivery of power, and precision analog for sensing. GF’s laser focus on select end markets means these solutions are differentiated and purpose-built for automotive, smart mobile, IoT, communications infrastructure, and data centers. To read more, check out “GlobalFoundries Advances RF Leadership with GF Connex Portfolio and Customer Collaborations” as well as the blog post “Expanding the Possibilities” by GF Chief Business Officer Mike Hogan. GF Labs Engaging with Academia Semiconductor innovation is essential to the growth and development of technology megatrends that are reshaping the global economy — from the Internet of Things to 5G and 6G wireless, from artificial intelligence (AI) and quantum computing to next-generation vehicles, and beyond. In May 2022 we announced our GF Labs program to expand and accelerate the momentum of this innovation. GF Labs leads our company’s research and development efforts and provides the framework for advancing GF’s differentiated technology portfolio in partnership with leading academic, government, and industry collaborators. In addition to joining the American Semiconductor Innovation Coalition this summer, GF and Purdue University announced in November 2022 a new strategic partnership to strengthen and expand collaboration on semiconductor research and education, with a focus on joint R&D. Through GF’s University Partnership Program, a part of GF Labs, research teams at more than 50 leading universities have unique access to GF and our technologies. Don’t miss “A Look into the Future of Automotive Radar” and “GF Aims for Energy-Efficient Artificial Intelligence” to hear how GF is collaborating with these world-leading academic researchers to advance critical technologies. The Future is Bright for GF Fotonix Reports show that more than 42 billion devices connected to the Internet of Things are generating around 177 zettabytes of data every year. Energy is consumed as this data moves from devices to data centers and back again. In March 2022, GF proudly announced GF Fotonixtm, the next-generation, first-of-its-kind silicon photonics platform that addresses the clear need for innovative solutions to handle the ever-growing volumes of data in a way that is highly reliable, faster, and more energy efficient. GF has active design wins with major customers, and a significant share of today’s optical networking modules market. Click here and scroll down a bit to see what our customers and partners are saying about GF Fotonix and our leadership in silicon photonics. GF Fotonix monolithically integrates high-performance radio-frequency (RF), digital, and silicon photonics circuits on the same chip, while leveraging the scale, efficiencies and tight process controls of 300 millimeter semiconductor manufacturing at our facility in Malta, New York. Read more about the innovative GF Fotonix platform at: Silicon Photonics are here and GlobalFoundries is Innovating GF Collaborates with Fabrinet on Fiber-Attach Capability for Silicon Photonics Platform Making Electronics-Photonics Integration a Reality More Compute Power, Better Connectivity: Combining Proven CMOS Chip Fabrication with Silicon Photonics to Move Data at the Speed of Light Resource Conservation and Sustainable Manufacturing We recognize climate change is an unprecedented global challenge, and we continue along our Journey to Zero Carbon. As part of GF’s longstanding commitment to environmentally responsible manufacturing and operations, we are constantly looking for new ways to minimize our impact on the environment. This spring, GF announced the results of our three-year (2019-2021) resource conservation goals. Using a wide variety of innovative strategies, our team successfully met or exceeded goals for realizing annual savings in electricity use, water use, greenhouse gas (GHG) emission, as well as chemical use and waste generation. These annual savings include: GHG emissions roughly equivalent those from 5,000 U.S. homes in an average year Electricity roughly equivalent to the amount used by 8,000 U.S. homes in an average year Enough water to fill 136 Olympic-sized swimming pools. Chemical use and waste generation roughly equivalent to the weight of a herd of 1,600 elephants Read more on the GF blog: GF Surpasses Key Greenhouse Gas Reduction and Water Conservation Goals; GF Achieves Savings in Electricity, Chemical Use, and Waste Generation
Dr. Thomas Caulfield, President & CEO, GlobalFoundries Joins GSA’s Board of Directors December 16, 2022
