Following demand from customers, collaboration will provide a new supply of chips on GF’s power efficient and feature-rich 7HV semiconductor platform 

SAN DIEGO and ESSEX JUNCTION, VT., June 5, 2024 — ElevATE Semiconductor and GlobalFoundries (Nasdaq: GFS) (GF) today announced a manufacturing partnership for high-voltage chips produced at GF’s facility in Essex Junction, Vermont. Designed by ElevATE and manufactured at scale by GF on its proven and power-efficient 7HV technology platform, the chips are vital to both commercial semiconductor testing equipment and critical applications for aerospace and defense systems.  

The agreement outlines GF’s supply of its 7HV chip technology to ElevATE and the marketplace. Manufactured on 200mm wafers at GF’s Vermont facility, the mature-node chips pair power management and wireless sensing capabilities, delivering the performance, design flexibility and power efficiency required by a range of electronics devices in national security systems. The 7HV platform is optimized for cost and performance, and offers a full suite of features and options with well-characterized design tools, as well as proven manufacturing reliability with robust yields. 

To meet the demands of commercial clients and the aerospace and defense industry, ElevATE and GF are collaborating to provide restart support and reestablish the production of 7HV chips. The renewed availability of the 7HV platform will save customers costs, time, and the challenge of redesigning their products using a different chip technology. The new supply will build upon the success of the millions of 7HV chips previously manufactured at GF’s Vermont facility.  

“This collaboration marks a significant transformation in ElevATE’s production strategy, transitioning its fabrication processes to GlobalFoundries,” said Anil Kodali, Vice President of Operations and Quality Assurance at ElevATE. “With GF as our manufacturing partner, we can be sure of a robust and reliable source of supply, enabling us to meet the escalating demands of our customers in terms of volume, quality and time-to-market.” 

“Our collaboration with ElevATE underscores GF’s commitment to ensuring the U.S. semiconductor and national security ecosystems have a reliable supply of secure, domestically manufactured chips,” said Nicholas Sergeant, vice president and head of the aerospace, defense and critical infrastructure business at GF. “As the leading supplier of essential chips for the U.S. aerospace and defense industry and a longstanding partner to the Department of Defense, GF goes above and beyond to ensure our national security customers have the chips they need, manufactured where they want them, with the right level of security.” 

GF’s facility in Essex Junction, Vermont, near Burlington, was among the first major semiconductor manufacturing sites in the United States. Today, around 1,800 GF employees work at the site. Built on GF’s differentiated technologies, these GF-made chips are used in smartphones, automobiles, and communications infrastructure applications around the world. The facility is a DMEA-accredited Trusted Foundry and manufactures secure chips in partnership with the U.S. government. 

Read more about GF’s aerospace, defense and critical infrastructure offerings at: https://gf.com/markets/aerospace-and-defense/ 

About ElevATE Semiconductor 

ElevATE Semiconductor is a leader in the global semiconductor manufacturing industry, offering cutting-edge semiconductor test and ATE solutions. The company is committed to supporting the semiconductor and system test community by providing advanced integrated circuits (ICs) that address the complex challenges of ATE. With a focus on designing efficient, high-density solutions, ElevATE Semiconductor aims to reduce the overall cost of testing for its customers, both now and in the future. Visit www.elevatesemi.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 required by law.   

Media Contacts: 

ElevATE Semiconductor 

Tim Bakken, Vice President of Global Sales 
[email protected] 

GlobalFoundries 

Michael Mullaney 
[email protected] 

MALTA, N.Y., May 30, 2024 — GlobalFoundries (Nasdaq: GFS) (GF) has been named to USA Today’s “America’s Climate Leaders 2024” list. GF’s inclusion on the list, announced today and viewable here, is the latest recognition of the company’s longstanding commitment to sustainability and corporate responsibility.

“Our team works every day to find new efficiencies and innovate new ways to minimize our impact on the environment. It’s fundamental to who we are as a company,” said Brian Raley, director of sustainability at GF. “We are proud to have our efforts recognized by USA Today and to be included on its list of ‘America’s Climate Leaders 2024.’”

The “America’s Climate Leaders 2024” list is based on independent research and analysis of submitted and publicly available information, including data from the Carbon Disclosure Project and independent reports. The final list recognizes 450 companies across multiple industries.

Last month, GF announced it was furthering its commitment to sustainable operations and fighting climate change with new long-term goals to achieve net-zero greenhouse gas emissions and 100% carbon-neutral power by 2050. Aligned with Paris Agreement goals, GF’s new goals build upon the company’s Journey to Zero Carbon pledge in 2021 to reduce its greenhouse gas emissions by 25% from 2020 to 2030, even as the company continues to expand its global manufacturing capacity. GF is on track to meet this 25% reduction goal by 2030.

Other recent recognitions of GF’s sustainability and corporate responsibility efforts include being named to Morningstar Sustainalytics’ “2024 Top-Rated ESG Companies,” maintaining a “Prime” corporate ESG performance rating in 2023 from ISS and being named to Newsweek’s 2023 and 2024 lists of “America’s Most Responsible Companies.”

Learn more about sustainability and corporate responsibility at GF and see a full list of the company’s sustainability awards and recognitions at: https://gf.com/about-us/corporate-responsibility

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 Contact:

GlobalFoundries
Michael Mullaney
[email protected]

---

MALTA, NY, May 22, 2024 – GlobalFoundries Inc. (“GlobalFoundries” or “GF”) (Nasdaq: GFS), today announced the pricing of a secondary public offering of $950 million of its ordinary shares at a price to the public of $50.75 per share (including a $200 million share repurchase, as described below). All of the shares in the offering are being offered by Mubadala Technology Investment Company (the “Selling Shareholder”). The Selling Shareholder is a wholly owned subsidiary of Mubadala Investment Company PJSC (which, together with its affiliates, is GlobalFoundries’ largest shareholder). The Selling Shareholder has also granted the underwriters a 30-day option to purchase up to an additional $112.5 million of GlobalFoundries’ ordinary shares (equal to 15% of the initial ordinary shares being sold to the public) at the public offering price minus underwriting discounts and commissions. The offering is expected to close on May 28, 2024, subject to customary closing conditions.

GlobalFoundries is not selling any ordinary shares in the offering and will not receive any proceeds from the sale of the shares being offered by the Selling Shareholder.

GlobalFoundries has agreed to concurrently repurchase from the underwriters $200 million of the Selling Shareholder’s ordinary shares that are subject to the offering at a price per share equal to the public offering price for the offering (the “Share Repurchase”). GlobalFoundries intends to fund the Share Repurchase with cash on its balance sheet. GlobalFoundries expects the closing of the Share Repurchase to occur substantially simultaneously with the closing of the offering. The closing of the Share Repurchase is conditioned on the closing of the offering. The closing of the offering is not conditioned on the closing of the Share Repurchase. The underwriters are not receiving any discount or commission with respect to the ordinary shares being repurchased by GlobalFoundries pursuant to the Share Repurchase.

Morgan Stanley & Co. LLC and BofA Securities are acting as book-running managers for the offering. Citigroup, Goldman Sachs & Co. LLC and J.P. Morgan are acting as active book-running managers for the offering. Deutsche Bank Securities, Evercore ISI and HSBC Securities (USA) Inc. are acting as additional book-running managers for the offering. Baird, Needham & Company, Raymond James, Wedbush Securities, Drexel Hamilton and Siebert Williams Shank are acting as co-managers for the offering.

The offering of these securities is being made only by means of a prospectus. A registration statement relating to these securities has been filed with the Securities and Exchange Commission (the “SEC”) and has become effective. A preliminary prospectus supplement and accompanying prospectus relating to the offering has been filed, and a final prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC. Copies of the final prospectus supplement and the accompanying prospectus relating to this offering may be obtained from: Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014, or by email at [email protected]; BofA Securities, Attention: Prospectus Department, NC1-022-02-25, 201 North Tryon Street, Charlotte, NC 28255-0001, or by email at [email protected]; or by accessing the SEC’s website at www.sec.gov.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

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.

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 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 the expected completion of the offering and the Share Repurchase. 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 including regarding market conditions, our business and the Selling Shareholder. Any inaccuracy in our assumptions and estimates could affect the realization of the expectations or forecasts in these forward-looking 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 2023 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.

Investor Contact:
[email protected]

Media Contact:
[email protected]

MALTA, NY, May 22, 2024 – GlobalFoundries Inc. (“GlobalFoundries” or “GF”) (Nasdaq: GFS) today announced the launch of a secondary public offering of $950 million of its ordinary shares (including a $200 million share repurchase, as described below). All of the shares in the offering are being offered by Mubadala Technology Investment Company (the “Selling Shareholder”). The Selling Shareholder is a wholly owned subsidiary of Mubadala Investment Company PJSC (which, together with its affiliates, is GlobalFoundries’ largest shareholder). The Selling Shareholder is expected to grant the underwriters a 30-day option to purchase up to an additional $112.5 million of GlobalFoundries’ ordinary shares (equal to 15% of the initial ordinary shares being sold to the public). 

GlobalFoundries is not selling any ordinary shares in the offering and will not receive any proceeds from the sale of the shares being offered by the Selling Shareholder.

GlobalFoundries intends to concurrently repurchase from the underwriters approximately $200 million of the Selling Shareholder’s ordinary shares that are subject to the offering at a price per share equal to the public offering price for the offering (the “Share Repurchase”). GlobalFoundries intends to fund the Share Repurchase with cash on its balance sheet. GlobalFoundries expects the closing of the Share Repurchase to occur substantially simultaneously with the closing of the offering. The closing of the Share Repurchase is conditioned on the closing of the offering. The closing of the offering is not conditioned on the closing of the Share Repurchase. The underwriters are not receiving any discount or commission with respect to the ordinary shares being repurchased by GlobalFoundries pursuant to the Share Repurchase.

Morgan Stanley & Co. LLC and BofA Securities are acting as book-running managers for the offering.

The offering of these securities is being made only by means of a prospectus. A registration statement relating to these securities has been filed with the Securities and Exchange Commission (the “SEC”) and has become effective. A preliminary prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC.  A copy of the preliminary prospectus relating to the offering, when available, may be obtained from: Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014, or by email at [email protected]; BofA Securities, Attention: Prospectus Department, NC1-022-02-25, 201 North Tryon Street, Charlotte, NC 28255-0001, or by email at [email protected]; or by accessing the SEC’s website at www.sec.gov.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

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.

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 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 the terms, timing and expected completion of the offering and the Share Repurchase. 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, including regarding market conditions, our business and the Selling Shareholder. Any inaccuracy in our assumptions and estimates could affect the realization of the expectations or forecasts in these forward-looking 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 2023 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.

Investor Contact:
[email protected]

Media Contact:
[email protected]

Effort aims to develop the next generation of diverse semiconductor talent, accelerate R&D and strengthen collaboration between industry and academia 

MALTA, N.Y., May 21, 2024 — GlobalFoundries (Nasdaq: GFS) (GF) today announced a partnership with Micron Technology, Inc. (Nasdaq: MU) and the U.S. National Science Foundation (NSF) to invest in workforce development at Minority Serving Institutions (MSI) to help meet the growing workforce needs of the U.S. semiconductor ecosystem. 

In partnership with Micron and the NSF, the investment will support semiconductor workforce development at Historically Black College and Universities, Hispanic Serving Institutions, Asian American Native American Pacific Islander-Serving Institutions and Tribal Colleges and Universities throughout the U.S. These investments aim to diversify the semiconductor workforce and build robust talent pathways through education and career reentry initiatives. 

The companies’ and NSF ’s support of U.S. MSIs is directly aligned with the workforce development objectives of the federal CHIPS and Science Act as well as New York State’s Green Chips legislation, to ensure a robust pipeline of U.S. semiconductor talent. 

“As an industry, we must work together to collectively address the great need for a robust, diverse pipeline of talented individuals who will be the semiconductor innovators and leaders of tomorrow,” said Pradheepa Raman, chief people officer of GF. “Strong public-private partnerships, like our collaboration with Micron and NSF to support Minority Serving Institutions, are critical to continue the work of inspiring and developing the skilled workforce our industry needs to grow.” 

“Partnering with leaders in industry, government and education to meet the needs of a growing semiconductor workforce in the U.S. is an essential part of nurturing the talent necessary to fill key openings in the semiconductor industry,” said Erwin Gianchandani, NSF assistant director for Technology, Innovation and Partnerships. “We look forward to collaborating with our partners to increase access to equitable education, address student programming and teacher and faculty professional development and strengthen infrastructure through future funding opportunities.” 

“Micron’s investments in U.S. expansion are about much more than building fabs. We’re investing in people and in partnerships to expose learners from every background to opportunities they may not otherwise have without support,” said April Arnzen, executive vice president and chief people officer at Micron and president of the Micron Foundation. “We’re honored to see initiatives like Micron’s MSI Semiconductor Network, which are at the forefront of our industry’s efforts to prepare the semiconductor workforce and research ecosystem to meet growing demand for talent, recognized by government leaders in the U.S. and globally.” 

“Micron’s and GlobalFoundries’ historic investments are transformative for Upstate New York and the nation, and today’s announcement will put in place another critical workforce development initiative to deliver the workers needed to fill the tens of thousands of new jobs that will be created. This initiative will especially focus on connecting underserved and historically marginalized New Yorkers and others around the country to new job opportunities in the semiconductor industry, including to build chips in Upstate NY,” said Senate Majority Leader Chuck Schumer. “In recent weeks, my CHIPS & Science Law delivered a whopping $6.1 billion for Micron to build their mega-fab project and another $1.5 billion for GlobalFoundries’ expansion. Now, Micron and GlobalFoundries are working to develop a workforce pipeline to train and attract the next generation of talent, putting students from our top-notch educational institutions into jobs in the semiconductor industry. I am glad this initiative is supported by National Science Foundation funds from my CHIPS & Science Law, which serves as the fuel for major investments like Micron’s and GlobalFoundries’ to bring chip manufacturing back to America and helping our future scientists and engineers reach new heights with good-paying jobs right at their doorstep.” 

“We are excited about the opportunities to grow efforts with GlobalFoundries that have led to increased summer internships and experiences at GF’s Malta, NY, facility for students at multiple CUNY schools including LaGuardia, Queensborough and City Tech,” said Tavis Ezell, director of business development for The City University of New York’s (CUNY) Advanced Science Research Center (ASRC). “With our industry partners, we are identifying the necessary skills needed to support jobs across the vast semiconductor ecosystem and bolster current curricula across a wide range of CUNY degrees, connecting interested students to training opportunities, whether their first internship experience is at the ASRC, or at an industry partner such as GlobalFoundries.” 

GF’s support of MSIs is the company’s latest effort to build a critical talent pipeline for a current and future workforce. In November 2023, the company announced a new student loan repayment program to help U.S.-based employees and eligible new recruits pay up to $28,500 in student loan debt, tax-free, to help ease the financial burden of higher education and training. GF also offers tuition reimbursement for employees pursuing undergraduate and graduate degrees, fully paid parental leave, employee fitness stipend to promote good health and childcare subsidy towards dependent care. GF’s first-of-its-kind apprenticeship program provides opportunities for individuals with no prior experience or training in the semiconductor industry, offering full-time paid positions and cost-free college courses to high school graduates. 

GF has established strategic partnerships nationwide with top universities and strong regional engagements with community colleges in New York and Vermont as well as access to worldwide talent through its global footprint to help build a diverse workforce and semiconductor talent pipeline. To help inspire younger children, GF has a robust STEM outreach program to engage with regional middle schools and high schools, including Early College High School and Career and Technical Education programs, to bring industry awareness and hands-on experiences to students. 

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. 

Media Contact: 

Michael Mullaney 
[email protected] 

Industry veteran to expand company’s business development and strategic partnerships in Asia with focus on China

BEIJING, China, May 20, 2024 – GlobalFoundries (NASDAQ: GFS) (GF) today announced the appointment of industry and company veteran, Kay Chai (KC) Ang, as president of Asia and Chairman of China. With over 30 years of semiconductor foundry experience, Mr. Ang will lead new business development and strategic partnerships across Asia with a focus on China.

Mr. Ang joined GF in 2010 and has served in a variety of senior leadership roles for the company including most recently as Chief Manufacturing Officer with responsibility for GF’s global sites as well as previously as head of all GF’s Singapore operations.

Prior to joining GF, Mr. Ang held senior leadership positions at Chartered Semiconductor Manufacturing, including Senior Vice President of Sales and Marketing with responsibility for global sales, marketing, services, customer support and regional business operations.

Mr. Ang has been a key player in the growth of Singapore’s chip industry. He serves on the Board of the National Research Foundation in Singapore and is the Chairman of the SEMI Southeast Asia Regional Advisory Board.

“At GF, we leverage our global footprint to provide our customers with the secure, essential chips they need, where they want them produced,” said Niels Anderskouv, chief business officer at GF. “Given his more than 30 years experience coupled with his long-standing relationships with some of Asia’s most senior semiconductor industry leaders, KC is the ideal leader to drive customer engagements and partnerships across Asia and accelerate GF’s business growth within the China market in particular.”  

“I am excited about this next stage of my career. I am looking forward to partnering with my commercial, technical and product management colleagues to expand GF’s relationships and be a trusted, dependable partner for our customers,” said KC Ang, president, Asia & Chairman, China at GF. “The differentiated technology solutions that we offer combined with our manufacturing excellence, especially in key end markets such as automotive, make us a perfect partner for fast growing customers in Asia. In addition, we are responding to many of our existing multi-national customers who are looking for ways to partner with GF to serve the growing demands of their Chinese end customers with high quality manufacturing and essential chip technologies.”

### 

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.

Media Contact:

Luana Low
+65 9106 3469
[email protected]

MALTA, N.Y., May 07, 2024 (GLOBE NEWSWIRE) — GlobalFoundries Inc. (GF) (Nasdaq: GFS) today announced preliminary financial results for the first quarter ended March 31, 2024.

Key First Quarter Financial Highlights

• Revenue of $1.549 billion
• Gross margin of 25.4% and Non-IFRS gross margin⁽¹⁾ of 26.1%
• Operating margin of 9.5% and Non-IFRS operating margin⁽¹⁾ of 12.1%
• Net income of $134 million and Non-IFRS net income⁽¹⁾ of $174 million
• Non-IFRS EBITDA⁽¹⁾ of $577 million
• Cash, cash equivalents and marketable securities of $4.2 billion

“In the first quarter, GF’s dedicated teams across the world delivered financial results that exceeded the high end of the guidance ranges we provided in our February earnings release,” said Dr. Thomas Caulfield, president and CEO of GF. “As pockets of the semiconductor industry begin to emerge from the inventory correction, our teams are driving foundry innovation and differentiation for our customers across their essential end-markets. We are delighted with the awards from both the U.S. Department of Commerce and New York State to expand our manufacturing capability in the United States, which will complement our unique global capacity offering.”

Recent Business Highlights

• As part of the U.S. CHIPS and Science Act, the U.S. Department of Commerce announced $1.5 billion in planned direct funding for GF’s New York and Vermont facilities. The proposed funding will support expansion and technology diversification, enabling secure capacity for automotive, aerospace and defense and other key markets.

• In addition, New York State announced over $600 million in planned funding under the New York State Green CHIPS and other state benefits for GF’s two Malta, New York projects.

• GF is furthering its commitment to sustainable operations and fighting climate change with the announcement of two new long-term goals to achieve net-zero greenhouse gas emissions and 100% carbon neutral power by 2050. The new 2050 goals are aligned with Paris Agreement goals and build upon GF’s Journey to Zero Carbon pledge in 2021.

⁽¹⁾ Non-IFRS gross profit, Non-IFRS operating profit, Non-IFRS net income, Non-IFRS EBITDA and any related margins are all 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)

														Year-over-year						Sequential
		Q1’24				Q4’23				Q1’23				Q1’24 vs Q1’23						Q1’24 vs Q4’23
Net revenue		$	1,549			$	1,854			$	1,841			$	(292	)	(16)%			$	(305	)	(16)%
Gross profit			393				525				515			$	(122	)	(24)%			$	(132	)	(25)%
Gross margin			25.4	%			28.3	%			28.0	%					(260)bps						(290)bps
Non-IFRS gross profit(1)		$	405			$	537			$	525			$	(120	)	(23)%			$	(132	)	(25)%
Non-IFRS gross margin(1)			26.1	%			29.0	%			28.5	%					(240)bps						(290)bps
Operating profit		$	147			$	303			$	290			$	(143	)	(49)%			$	(156	)	(51)%
Operating margin			9.5	%			16.3	%			15.8	%					(630)bps						(680)bps
Non-IFRS operating profit(1)		$	187			$	383			$	326			$	(139	)	(43)%			$	(196	)	(51)%
Non-IFRS operating margin(1)			12.1	%			20.7	%			17.7	%					(560)bps						(860)bps
Net income		$	134			$	278			$	254			$	(120	)	(47)%			$	(144	)	(52)%
Net income margin			8.7	%			15.0	%			13.8	%					(510)bps						(630)bps
Non-IFRS net income(1)		$	174			$	356			$	290			$	(116	)	(40)%			$	(182	)	(51)%
Non-IFRS net income margin(1)			11.2	%			19.2	%			15.8	%					(460)bps						(800)bps
Diluted earnings per share (“EPS”)		$	0.24			$	0.50			$	0.46			$	(0.22	)	(48)%			$	(0.26	)	(52)%
Non-IFRS diluted EPS(1)		$	0.31			$	0.64			$	0.52			$	(0.21	)	(40)%			$	(0.33	)	(52)%
Non-IFRS EBITDA(1)		$	577			$	773			$	655			$	(78	)	(12)%			$	(196	)	(25)%
Non-IFRS EBITDA margin(1)			37.2	%			41.7	%			35.6	%					+160bps						(450)bps
Cash from operations		$	488			$	684			$	479			$	9		2	%		$	(196	)	(29)%
Wafer shipments (300mm equivalent) (in thousands)			463				552				511				(48	)	(9)%				(89	)	(16)%

⁽¹⁾ Non-IFRS gross profit, Non-IFRS operating profit, Non-IFRS net income, Non-IFRS diluted EPS, Non-IFRS EBITDA, and any 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.

Summary of Second Quarter 2024 Guidance (unaudited in millions USD, except per share amounts)⁽¹⁾

	IFRS		Share-based compensation		Non-IFRS (2)
Net revenue	$1,590 – $1,640		—		—
Gross profit	$367 – $413		$13 – $15		$382 – $426
Gross margin(3) (mid-point)	24.1%				25.0%
Operating profit	$94 – $168		$45 – $55		$149 – $213
Operating margin(3) (mid-point)	8.1%				11.2%
Net income	$78 – $146		$45 – $55		$133 – $191
Net income margin(3) (mid-point)	6.9%				10.0%
Diluted EPS	$0.14 – $0.26				$0.24 – $0.34

⁽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.

⁽²⁾ Non-IFRS gross profit, Non-IFRS operating expense, Non-IFRS operating profit, Non-IFRS net income, and Non-IFRS diluted EPS are Non-IFRS metrics and, for purposes of the Guidance only, are defined as gross profit, operating profit, net income, and EPS before share-based compensation, respectively. Non-IFRS operating expense is calculated by subtracting Non-IFRS operating profit from Non-IFRS gross profit.

⁽³⁾ Non-IFRS margins are Non-IFRS metrics and for purposes of the Guidance only, are defined as Non-IFRS gross profit, Non-IFRS operating profit and Non-IFRS net income, each divided by net revenue (using the definitions of Non-IFRS gross profit, Non-IFRS operating profit, and Non-IFRS net income, in footnote (2) above, as appropriate).

Unaudited Consolidated Statements of Operations

		Three Months Ended
(in millions USD, except for per share amounts)		March 31, 2024				March 31, 2023
Net revenue		$	1,549			$	1,841
Cost of revenue			1,156			$	1,326
Gross profit		$	393			$	515
Operating expenses:
Research and development			124				109
Selling, general and administrative(1)			122				111
Restructuring charges			—				5
Total operating expenses		$	246				225
Operating profit		$	147				290
Finance income (expense), net			10				1
Other income (expense)			(2	)			(14	)
Income tax expense			(21	)			(23	)
Net income		$	134			$	254
Attributable to:
Shareholders of GlobalFoundries			133			$	254
Non-controlling interest			1				—
EPS:
Basic		$	0.24			$	0.46
Diluted		$	0.24			$	0.46
Shares used in EPS calculation:
Basic			555				550
Diluted			558				555

⁽¹⁾ Beginning in Q3 2023, selling, general and administrative includes (gain)/loss on tool sales and certain contract cancellation fees. Prior period amounts have not been adjusted, as they are immaterial.

Unaudited Consolidated Statements of Financial Position
(in millions USD)		March 31, 2024				December 31, 2023
Assets:
Cash and cash equivalents		$	2,247			$	2,387
Receivables, prepayments and other			1,190				1,420
Marketable securities			1,110				1,033
Inventories			1,667				1,487
Current assets		$	6,214			$	6,327
Deferred tax assets		$	218			$	241
Property, plant, and equipment, net			10,304				10,164
Marketable securities			807				468
Other assets			911				844
Non-current assets		$	12,240			$	11,717
Total assets		$	18,454			$	18,044
Liabilities and equity:
Current portion of long-term debt		$	542			$	571
Other current liabilities			2,312				2,528
Current liabilities		$	2,854			$	3,099
Non-current portion of long-term debt		$	1,766			$	1,801
Other liabilities			2,537				1,993
Non-current liabilities		$	4,303			$	3,794
Shareholders’ equity:
Common stock/additional paid-in capital		$	24,078			$	24,038
Accumulated deficit			(12,868	)			(13,001	)
Accumulated other comprehensive income			41				67
Non-controlling interest			46				47
Total liabilities and equity		$	18,454			$	18,044

 

Unaudited Consolidated Statements of Cash Flows
		Three Months Ended
(in millions USD)		March 31, 2024				March 31, 2023
Cash flows from operating activities:
Net income		$	134			$	254
Depreciation and amortization			392				343
Finance (income) expense, net and other			6				7
Deferred income taxes			23				22
Other non-cash operating activities			30				27
Net change in working capital			(97	)			(174	)
Net cash provided by operating activities		$	488			$	479
Cash flows from investing activities:
Purchases of property, plant, equipment, and intangible assets		$	(227	)		$	(853	)
Other investing activities			(373	)			267
Net cash used in investing activities		$	(600	)		$	(586	)
Cash flows from financing activities:
Proceeds from issuance of equity instruments and other		$	23			$	37
Proceeds (repayment) of debt, net			(50	)			(30	)
Other financing activities			—				3
Net cash (used in) provided by financing activities		$	(27	)		$	10
Effect of exchange rate changes			(1	)			1
Net change in cash and cash equivalents		$	(140	)		$	(96	)
Cash and cash equivalents at the beginning of the period			2,387				2,352
Cash and cash equivalents at the end of the period		$	2,247			$	2,256

 

Unaudited Reconciliation of IFRS to Non-IFRS
		Three Months Ended
(in millions USD, except for per share amounts)		March 31, 2024				December 31, 2023				March 31, 2023
Net Revenue		$	1,549			$	1,854			$	1,841
Gross profit		$	393			$	525			$	515
Gross profit margin			25.4	%			28.3	%			28.0	%
Share-based compensation		$	12			$	12			$	10
Non-IFRS gross profit(1)		$	405			$	537			$	525
Non-IFRS gross margin(1)			26.1	%			29.0	%			28.5	%
Selling, general and administrative(2)		$	122			$	87			$	111
Share-based compensation		$	21			$	30			$	17
Non-IFRS selling, general and administrative(1)		$	101			$	57			$	94
Research and development		$	124			$	105			$	109
Share-based compensation		$	7			$	8			$	4
Non-IFRS research and development(1)		$	117			$	97			$	105
Operating profit		$	147			$	303			$	290
Operating profit margin			9.5	%			16.3	%			15.8	%
Share-based compensation		$	40			$	50			$	31
Restructuring charges		$	—			$	30			$	5
Non-IFRS operating profit(1)		$	187			$	383			$	326
Non-IFRS operating profit margin(1)			12.1	%			20.7	%			17.7	%
Net income		$	134			$	278			$	254
Net income margin			8.7	%			15.0	%			13.8	%
Share-based compensation		$	40			$	50			$	31
Restructuring charges		$	—			$	30			$	5
Income tax effect(3)		$	—			$	(2	)		$	—
Non-IFRS net income(1)		$	174			$	356			$	290
Non-IFRS net income margin(1)			11.2	%			19.2	%			15.8	%
Diluted EPS		$	0.24			$	0.50			$	0.46
Share-based compensation		$	0.07			$	0.09			$	0.05
Restructuring charges		$	—			$	0.05			$	0.01
Income tax effect(3)		$	—			$	—			$	—
Diluted shares outstanding			558				557				555
Non-IFRS diluted EPS(1)		$	0.31			$	0.64			$	0.52

⁽¹⁾Non-IFRS gross profit, Non-IFRS selling, general and administrative, Non-IFRS research and development, Non-IFRS operating profit, Non-IFRS operating expense (calculated by subtracting Non-IFRS operating profit from Non-IFRS gross profit), Non-IFRS net income, Non-IFRS diluted EPS 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⁾ Beginning in Q3 2023, selling, general and administrative includes (gain)/loss on tool sales and certain contract cancellation fees. Prior period amounts have not been adjusted, as they are immaterial.

⁽³⁾ Relates to restructuring charges.

Non-IFRS Free Cash Flow(1)
		Three Months Ended
(in millions USD)		March 31, 2024				December 31, 2023				March 31, 2023
Net cash provided by operating activities		$	488			$	684			$	479
Less: Purchase of property, plant and equipment and intangible assets		$	(227	)		$	(228	)		$	(853	)
Non-IFRS free cash flow(2)		$	261			$	456			$	(374	)

⁽¹⁾ Non-IFRS free cash flow is a Non-IFRS measure. See “Financial Measures (Non-IFRS)” for a discussion of why we believe these Non-IFRS measures are useful.  

⁽²⁾ Beginning Q1 2024 Non-IFRS free cash flow includes proceeds from government grants related to capital expenditures. This change in methodology is in anticipation of future expected proceeds from government grants related to capital expenditures from the planned funding awarded under the U.S. CHIPS and Science Act and the New York State Green CHIPS, and better aligns our Non-IFRS free cash flow metric to how GF assesses capital decisions internally. As such, prior periods have not been adjusted to reflect this new calculation methodology. Proceeds from government grants were $0, $137 million and $0 for the three months periods ending March 31, 2024, December 31, 2023 and March 31, 2023, respectively.

Unaudited Reconciliation of Net Income to Non-IFRS EBITDA
		Three Months Ended
(in millions USD)		March 31, 2024				December 31, 2023				March 31, 2023
Net income for the period		$	134			$	278			$	254
Depreciation and amortization			392			$	402				343
Finance expense			37			$	35				31
Finance income			(47	)		$	(43	)			(32	)
Income tax expense (benefit)			21			$	21				23
Share-based compensation			40			$	50				31
Restructuring charges			—			$	30				5
Non-IFRS EBITDA(1)(2)		$	577			$	773			$	655
Non-IFRS EBITDA margin(1)(2)			37.2	%			41.7	%			35.6	%

⁽¹⁾ For the periods presented above, there were no labor optimization expenses or divestiture gains and associated expenses, legal settlements and transaction expenses.

⁽²⁾ Non-IFRS EBITDA and any related margin are Non-IFRS measures. 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: Non-IFRS gross profit, Non-IFRS operating profit, Non-IFRS operating expense, Non-IFRS net income, Non-IFRS selling, general and administrative, Non-IFRS research and development, Non-IFRS diluted earnings per share (“EPS”), Non-IFRS EBITDA, Non-IFRS free cash flow and any related margins. We define each of Non-IFRS gross profit, Non-IFRS selling, general and administrative and Non-IFRS research and development as each respective IFRS measure adjusted for share-based compensation. We define Non-IFRS operating profit as operating profit adjusted for share-based compensation and restructuring charges. We define Non-IFRS operating expense as Non-IFRS gross profit minus Non-IFRS operating profit. We define Non-IFRS net income as net income adjusted for share-based compensation, restructuring charges and the associated tax impact. We define Non-IFRS diluted EPS as Non-IFRS net income divided by the diluted shares outstanding. We define Non-IFRS free cash flow as cash flow provided by (used in) operating activities less purchases of property, plant and equipment and intangible assets plus proceeds from government grants related to capital expenditures. We define Non-IFRS EBITDA as net income, adjusted for the impact of finance expense, finance income, income tax expense (benefit), depreciation and amortization, share-based compensation, restructuring charges, labor optimization initiatives and divestiture gains and associated expenses, legal settlements and transaction expenses. We define Non-IFRS gross margin as Non-IFRS gross profit divided by revenue. We define Non-IFRS operating margin as Non-IFRS operating profit divided by net revenue. We define Non-IFRS EBITDA margin as Non-IFRS EBITDA divided by net revenue.

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 Non-IFRS 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, May 7, 2024 at 8:30 a.m. U.S. Eastern Time (ET) to review the first quarter 2024 results in detail. Interested parties may join the scheduled conference call by registering at https://register.vevent.com/register/BI80dca5c8687f4d3a907a0fb1e1a02465.
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 wars in Ukraine and Israel; 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 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 result in a system disruption, loss of data or damage our reputation; we could experience interruptions or performance problems associated with our technology, including a service outage; global economic conditions could deteriorate, including due to increasing interest rates, rising inflation and any potential recession; and our expected results and planned expansions and operations may not proceed as planned if funding we expect to receive (including the planned awards under the U.S. CHIPS and Science Act and New York State Green CHIPS) is delayed or withheld for any reason. 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 2023 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]