Category: Uncategorized
GlobalFoundries Announces Chief Financial Officer Transition and Names New Chief Business Officer
Tim Stone to join GF as CFO and Niels Anderskouv joins as CBO to accelerate market leadership in differentiated technologies
MALTA, N.Y.— May 9, 2023 — GlobalFoundries (NASDAQ: GFS) (GF) today announced the appointment of two new senior executives to its leadership team. Tim Stone has been appointed as the new Chief Financial Officer (CFO), taking over for David Reeder who will leave the company after transitioning to Stone over the coming months, and Niels Anderskouv will join as the new Chief Business Officer (CBO).
As CFO, Mr. Stone will build on the strong foundation laid by current CFO, David Reeder, and will focus on accelerating GF’s financial performance. Mr. Stone brings a world-class finance pedigree to GF including more than 20 years building Amazon’s global business in senior finance roles, including CFO for the AWS and Devices businesses as well as the CFO for public companies Ford Motor and Snap. He was most recently the CFO for a private AI software company.
Industry veteran, Niels Anderskouv joins as Chief Business Officer. Anderskouv will be responsible for driving GF’s business strategy, including product and technology roadmap, sales, and go-to-market execution. He has an extensive career in the semiconductor industry with more than 25 years of experience spanning engineering, executive management, and global leadership. He joins GF after serving as SVP and Executive Officer at Texas Instruments, where he was responsible for the company’s multi-billion-dollar Analog Power business and brings deep expertise in power management, analog and mixed-signal technologies.
“I want to thank Dave for his many contributions to GF. He has been an outstanding CFO and partner whose leadership was instrumental in bringing GF to the public markets and he has created the financial foundation to enable our next phase of growth,” said Dr. Thomas Caulfield, president and CEO of GF. “At the same time, I am excited to welcome two accomplished leaders to the GF leadership team. Tim Stone brings a breadth of experience and has a track record of delivering business outcomes in fast-moving technology-enabled industries including automotive, a key pillar of GF’s growth strategy. Niels Anderskouv brings deep semiconductor expertise and has an impressive track record of driving and delivering financial performance. Their combined expertise and experience will be instrumental in helping us achieve our growth objectives and drive value for our customers and shareholders.”
“I am thrilled to join GF at such an exciting time for semiconductor manufacturing, with major opportunities ahead for GF,” said Stone. “I look forward to partnering with the team to take GF to the next level as we deliver for our customers, drive further innovation, growth, productivity, operational excellence and returns on capital.”
“I am honored to join GF with its unique position in the industry,” said Anderskouv. “I am excited to help shape the company’s business strategy and work with the team to deliver innovative solutions to our customers. I look forward to contributing to the company’s continued success and growth.”
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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:
GF
Erica McGill
erica.mcgill@gf.com
518-795-5240
GlobalFoundries Reports First Quarter 2023 Financial Results
MALTA, N.Y., May 09, 2023 (GLOBE NEWSWIRE) — GlobalFoundries Inc. (GF) (Nasdaq: GFS) today announced preliminary financial results for the first quarter ended March 31, 2023.
Key First Quarter Financial Highlights
- Revenue of $1,841 million.
- Gross margin of 28.0% and adjusted gross margin(1) of 28.5%.
- Operating margin of 15.8% and adjusted operating margin(1) of 17.7%.
- Net income of $254 million and adjusted net income(1) of $290 million.
- Adjusted EBITDA(1) of $655 million.
- Cash, cash equivalents and marketable securities of $3,232 million.
“In the first quarter, amidst a continued uncertain macroeconomic and cyclical backdrop, GF delivered solid results that are consistent with the guidance we provided in our February earnings release,” said Dr. Thomas Caulfield, president and CEO of GF. “Despite a challenging business environment, GF’s gross margins for the quarter have increased year-over-year due to our continued disciplined focus on profitability by our global team who effectively manage costs, while driving a richer mix of business to our customers. As we look to the remainder of 2023, we will continue to support our customers’ needs, by investing in capacity to strengthen our differentiated solutions, increase our focus on growing end markets and drive value for our stakeholders.”
Recent Business Highlights
- GF announced a Strategic University Partnership agreement with Georgia Tech. This agreement spans a broad range of research activities, including leadership capabilities in advanced packaging, silicon photonics and workforce development initiatives.
- GF and Amkor Technology, Inc. formed a strategic partnership to establish the first at-scale back-end facility in Europe. GF transferred its 300mm Bump and Sort lines from its Dresden site in Germany to Amkor’s operations in Porto, Portugal.
- The European Commission approved the award of direct grant funding to GF and STMicroelectronics to support the construction and operation of a new 300mm manufacturing facility in Crolles, France. The funds are being made available under the European Chips Act and the project will enable the development of a large-scale manufacturing site in Europe for high performance chips, to address current and future key European markets from automotive to industrial, 5G/6G roll-out, security, defense, and space industries.
(1) Adjusted gross profit, adjusted operating income, adjusted net income, adjusted EBITDA and related margins are Non-IFRS measures. See “Adjusted Financial Measures (Non-IFRS)” for a detailed reconciliation of Non-IFRS measures to the most directly comparable IFRS measure and “Non-IFRS Financial Measures” 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 | |||||||||||||||||||||||
| Q1’23 | Q4’22 | Q1’22 | Q1’23 vs Q1’22 | Q1’23 vs Q4’22 | ||||||||||||||||||||
| Net revenue | $ | 1,841 | $ | 2,101 | $ | 1,940 | $ | (99 | ) | (5 | )% | $ | (260 | ) | (12 | )% | ||||||||
| Gross profit | 515 | 622 | 469 | $ | 46 | 10 | % | $ | (107 | ) | (17 | )% | ||||||||||||
| Gross margin | 28.0 | % | 29.6 | % | 24.2 | % | +380bps | (160)bps | ||||||||||||||||
| Adjusted gross profit(1) | $ | 525 | $ | 633 | $ | 490 | $ | 35 | 7 | % | $ | (108 | ) | (17 | )% | |||||||||
| Adjusted gross margin (1) | 28.5 | % | 30.1 | % | 25.3 | % | +320bps | (160)bps | ||||||||||||||||
| Operating profit | $ | 290 | $ | 288 | $ | 225 | $ | 65 | 29 | % | $ | 2 | 1 | % | ||||||||||
| Operating margin | 15.8 | % | 13.7 | % | 11.6 | % | +420bps | +210bps | ||||||||||||||||
| Adjusted operating profit(1) | $ | 326 | $ | 425 | $ | 279 | $ | 47 | 17 | % | $ | (99 | ) | (23 | )% | |||||||||
| Adjusted operating margin (1) | 17.7 | % | 20.2 | % | 14.4 | % | +330bps | (250)bps | ||||||||||||||||
| Net income(2) | $ | 254 | $ | 668 | $ | 178 | $ | 76 | 43 | % | $ | (414 | ) | (62 | )% | |||||||||
| Net income margin | 13.8 | % | 31.8 | % | 9.2 | % | +460bps | (1,800)bps | ||||||||||||||||
| Adjusted net income(1)(2)(3) | $ | 290 | $ | 800 | $ | 232 | $ | 58 | 25 | % | $ | (510 | ) | (64 | )% | |||||||||
| Adjusted net income margin (1) | 15.8 | % | 38.1 | % | 12.0 | % | +380bps | (2,230)bps | ||||||||||||||||
| Diluted earnings per share (“EPS”) | $ | 0.46 | $ | 1.21 | $ | 0.33 | $ | 0.13 | 39 | % | $ | (0.75 | ) | (62 | )% | |||||||||
| Adjusted diluted earnings per share(1) | $ | 0.52 | $ | 1.44 | $ | 0.42 | $ | 0.10 | 24 | % | $ | (0.92 | ) | (64 | )% | |||||||||
| Adjusted EBITDA(1)(4) | $ | 655 | $ | 821 | $ | 698 | $ | (43 | ) | (6 | )% | $ | (166 | ) | (20 | )% | ||||||||
| Adjusted EBITDA margin (1) | 35.6 | % | 39.1 | % | 36.0 | % | (40)bps | (350)bps | ||||||||||||||||
| Cash from operations | $ | 479 | $ | 491 | $ | 845 | $ | (366 | ) | (43 | $ | (12 | ) | (2 | )% | |||||||||
| Wafer shipments (300mm equivalent) (in thousands) | 511 | 580 | 625 | (114 | ) | (18 | )% | (69 | ) | (12 | )% | |||||||||||||
(1) Adjusted gross profit, adjusted operating profit, adjusted net income, adjusted diluted earnings per share, adjusted EBITDA, and related margins are adjusted Non-IFRS metrics; 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 is now defined as net income 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, adjusted for the impact of finance expense, finance income, income tax expense, depreciation, amortization, share-based compensation expense, divestiture gains and associated expenses, restructuring charges, labor optimization initiatives and litigation settlement.
Summary of Second 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 | $238 – $287 | $40 – $50 | $288 – $327 | ||
| Operating Margin (mid-point) | 14.3% | 16.8% | |||
| Net Income | $206 – $259 | $40 – $50 | $256 – $299 | ||
| Net Income Margin (mid-point) | 12.7% | 15.2% | |||
| Diluted EPS | $0.37 – $0.46 | $0.46 – $0.54 | |||
(1) The guidance provided above contains forward-looking statements as defined in the U.S. Private Securities Litigation Act of 1995, and is subject to the safe harbors created therein. The guidance includes management’s beliefs and assumptions and is based on information currently available. GF has not provided a reconciliation of its Second Fiscal Quarter outlook for adjusted Non-IFRS EBITDA and related margin because estimates of all of the reconciling items cannot be provided without unreasonable efforts. Certain factors that are materially signification to GF’s ability to estimate these items are out of its control and/or cannot be reasonably predicted.
Unaudited Consolidated Statements of Operations
| Three Months Ended | |||||||
| (in millions USD except for per share amounts) | March 31, 2023 | March 31, 2022 | |||||
| Net revenue | $ | 1,841 | $ | 1,940 | |||
| Cost of revenue | 1,326 | 1,471 | |||||
| Gross profit | $ | 515 | $ | 469 | |||
| Operating expenses: | |||||||
| Research and development | 109 | 128 | |||||
| Sales, marketing, general and administrative | 111 | 116 | |||||
| Restructuring charges | 5 | — | |||||
| Total operating expenses | $ | 225 | $ | 244 | |||
| Operating profit | $ | 290 | $ | 225 | |||
| Finance expense, net | 1 | (28 | ) | ||||
| Other income (expense) | (14 | ) | 10 | ||||
| Income tax expense | (23 | ) | (29 | ) | |||
| Net income | $ | 254 | $ | 178 | |||
| Attributable to: | |||||||
| Shareholders of GlobalFoundries | 254 | 179 | |||||
| Non-controlling interest | — | (1 | ) | ||||
| Earnings per share : | |||||||
| Basic | $ | 0.46 | $ | 0.34 | |||
| Diluted | $ | 0.46 | $ | 0.33 | |||
| Shares used in earnings per share calculation: | |||||||
| Basic | 550 | 532 | |||||
| Diluted | 555 | 549 | |||||
Unaudited Consolidated Statements of Financial Position
| (in millions USD) | March 31, 2023 | December 31, 2022 | ||||||
| Assets: | ||||||||
| Cash and cash equivalents | $ | 2,256 | $ | 2,352 | ||||
| Receivables, prepayments and other | 1,296 | 1,487 | ||||||
| Marketable securities | 653 | 622 | ||||||
| Inventories | 1,423 | 1,339 | ||||||
| Current assets | $ | 5,628 | $ | 5,800 | ||||
| Deferred tax assets | $ | 271 | $ | 292 | ||||
| Property, plant, and equipment, net | 10,829 | 10,596 | ||||||
| Marketable securities | 323 | 372 | ||||||
| Other assets | 764 | 781 | ||||||
| Non-current assets | $ | 12,187 | $ | 12,041 | ||||
| Total assets | $ | 17,815 | $ | 17,841 | ||||
| Liabilities and equity: | ||||||||
| Current portion of long-term debt | $ | 205 | $ | 223 | ||||
| Other current liabilities | 2,690 | 3,136 | ||||||
| Current liabilities | $ | 2,895 | $ | 3,359 | ||||
| Non-current portion of long-term debt | $ | 2,310 | $ | 2,288 | ||||
| Other liabilities | 2,303 | 2,234 | ||||||
| Non-current liabilities | $ | 4,613 | $ | 4,522 | ||||
| Shareholders’ equity: | ||||||||
| Common stock/additional paid-in capital | $ | 23,927 | $ | 23,842 | ||||
| Accumulated deficit | (13,767 | ) | (14,021 | ) | ||||
| Accumulated other comprehensive income | 100 | 92 | ||||||
| Non-controlling interest | 47 | 47 | ||||||
| Total liabilities and equity | $ | 17,815 | $ | 17,841 | ||||
Unaudited Consolidated Statements of Cash Flows
| Three Months Ended | |||||||
| (in millions USD) | March 31, 2023 | March 31, 2022 | |||||
| Cash flows from operating activities: | |||||||
| Net income | $ | 254 | $ | 178 | |||
| Depreciation and amortization | 343 | 408 | |||||
| Finance expense, net and other(1) | 7 | 9 | |||||
| Deferred income taxes | 22 | 19 | |||||
| Other non-cash operating activities | 27 | 42 | |||||
| Net change in working capital | (174 | ) | 189 | ||||
| Net cash provided by operating activities | $ | 479 | $ | 845 | |||
| Cash flows from investing activities: | |||||||
| Purchases of property, plant, equipment, and intangible assets | $ | (853 | ) | $ | (643 | ) | |
| Other investing activities | 267 | 4 | |||||
| Net cash used in investing activities | $ | (586 | ) | $ | (639 | ) | |
| Cash flows from financing activities: | |||||||
| Proceeds from issuance of equity instruments and other | $ | 37 | $ | — | |||
| Proceeds (repayment) of debt, net | (30 | ) | 107 | ||||
| Other financing activities | 3 | 11 | |||||
| Net cash provided by financing activities | $ | 10 | $ | 118 | |||
| Effect of exchange rate changes | 1 | 1 | |||||
| Net change in cash and cash equivalents | $ | (96 | ) | $ | 325 | ||
| Cash and cash equivalents at the beginning of the period | 2,352 | 2,939 | |||||
| Cash and cash equivalents at the end of the period | $ | 2,256 | $ | 3,264 | |||
| (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 | ||||||||||||
| (in millions USD) | March 31, 2023 | December 31, 2022 | March 31, 2022 | |||||||||
| Gross profit | $ | 515 | $ | 622 | $ | 469 | ||||||
| Gross profit margin | 28.0 | % | 29.6 | % | 24.2 | % | ||||||
| Share based compensation | $ | 10 | $ | 11 | $ | 21 | ||||||
| Adjusted gross profit (1) | $ | 525 | $ | 633 | $ | 490 | ||||||
| Adjusted gross margin(1) | 28.5 | % | 30.1 | % | 25.3 | % | ||||||
| Operating profit | $ | 290 | $ | 288 | $ | 225 | ||||||
| Operating profit margin | 15.8 | % | 13.7 | % | 11.6 | % | ||||||
| Share based compensation | $ | 31 | $ | 43 | $ | 54 | ||||||
| Restructuring charges(2) | $ | 5 | 94 | — | ||||||||
| Adjusted operating profit(1) | $ | 326 | $ | 425 | $ | 279 | ||||||
| Adjusted operating profit margin(1) | 17.7 | % | 20.2 | % | 14.4 | % | ||||||
| Net income(3) | $ | 254 | $ | 668 | $ | 178 | ||||||
| Net income margin | 13.8 | % | 31.8 | % | 9.2 | % | ||||||
| Share based compensation | $ | 31 | $ | 43 | $ | 54 | ||||||
| Restructuring charges(2) | $ | 5 | 94 | — | ||||||||
| Income tax effect(4) | $ | — | $ | (5 | ) | $ | — | |||||
| Adjusted net income (1)(5) | $ | 290 | $ | 800 | $ | 232 | ||||||
| Adjusted net income margin(1) | 15.8 | % | 38.1 | % | 12.0 | % | ||||||
| Diluted earnings per share | $ | 0.46 | $ | 1.21 | $ | 0.33 | ||||||
| Share based compensation | $ | 0.05 | $ | 0.07 | $ | 0.09 | ||||||
| Restructuring charges(2) | $ | 0.01 | 0.17 | — | ||||||||
| Income tax effect | $ | — | (0.01 | ) | — | |||||||
| Adjusted diluted earnings per share(1) | $ | 0.52 | $ | 1.44 | $ | 0.42 | ||||||
(1) Adjusted gross profit, adjusted operating income, adjusted net income, adjusted EBITDA, adjusted diluted earnings per share and related margins are Non-IFRS measures. See “Adjusted Financial Measures (Non-IFRS)” for a detailed reconciliation of Non-IFRS measures to the most directly comparable IFRS measure and “Non-IFRS Financial Measures” for a discussion of why we believe these Non-IFRS measures are useful.
(2) Includes $3.1 million of share based compensation in Q4 2022.
(3) Includes the gain on sale of our EFK business in December 2022.
(4) Relates to restructuring charges since Q4 2022.
(5) Reflects change to adjusted net income definition discussed in more detail elsewhere in this release.
Unaudited Reconciliation of Net Income to Adjusted EBITDA
| Three Months Ended | ||||||||||||
| (in millions USD) | March 31, 2023 | December 31, 2022 | March 31, 2022 | |||||||||
| Net income for the period | $ | 254 | $ | 668 | $ | 178 | ||||||
| Depreciation and amortization | 343 | 409 | 408 | |||||||||
| Finance expense | 31 | 28 | 29 | |||||||||
| Finance income | (32 | ) | (26 | ) | NA | |||||||
| Income tax expense | 23 | 8 | 29 | |||||||||
| Share based compensation | 31 | 43 | 54 | |||||||||
| Restructuring charges(1) | 5 | 94 | — | |||||||||
| Gains on transactions, legal settlements and transaction expenses(2) | — | (403 | ) | — | ||||||||
| Adjusted EBITDA(3)(4) | $ | 655 | $ | 821 | $ | 698 | ||||||
| Adjusted EBITDA margin(4) | 35.6 | % | 39.1 | % | 36.0 | % | ||||||
(1) Includes $3.1 million of share-based compensation in Q4 2022.
(2) Activity for the three months 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.
(4) Adjusted EBITDA and related margin are Non-IFRS measures. See “Adjusted Financial Measures (Non-IFRS)” for a detailed reconciliation of Non-IFRS measures to the most directly comparable IFRS measure and “Non-IFRS Financial Measures” for a discussion of why we believe these Non-IFRS measures are useful.
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, adjusted diluted earnings 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 as net income adjusted for share-based compensation expense, restructuring charges and the associated tax impact. We define adjusted diluted EPS as adjusted net income divided by the dilutive shares. We define adjusted EBITDA as net income, adjusted for the impact of finance expense, finance income, income tax expense, depreciation, amortization, share-based compensation expense, divestiture gains and associated expenses, restructuring charges, labor optimization initiatives and litigation settlements.
We believe that in addition to our results determined in accordance with IFRS, these 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, May 9, 2023 at 8:30 a.m. U.S. Eastern Time (ET) to review the First Quarter 2023 results in detail. Interested parties may join the scheduled conference call by registering at https://register.vevent.com/register/BId1a488fb8dad4744927be5f12860ebee.
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 2022 Annual Report on Form 20-F, current reports on Form 6-K and other reports filed with the Securities and Exchange Commission. Copies of our SEC filings are available on our Investor Relations website, investors.gf.com, or from the SEC website, www.sec.gov.
For further information, please contact:
Investor Relations
ir@gf.com
GlobalFoundries Announces New General Manager to Lead Malta Manufacturing Site
Hui Peng Koh takes top job as Peter Benyon retires
MALTA, N.Y., May 4, 2023 — GlobalFoundries (Nasdaq: GFS) (GF) today announced the appointment of Hui Peng Koh as vice president and general manager of the company’s semiconductor manufacturing facility in Malta, New York. Building on her experience in leading the 1,200 strong engineering team in Malta for the last three years, Ms. Koh is stepping up to lead GF’s most advanced U.S. fab that supports a wide range of customers. She succeeds long time GF executive and industry veteran Peter Benyon who will retire in early July 2023 after more than 40 years in the semiconductor industry including being part of the GF team since the acquisition of Chartered Semiconductor in 2011.
Ms. Koh, an accomplished leader with more than 23 years of semiconductor manufacturing experience, currently serves as vice president of manufacturing engineering at GF. Prior to her current role, she was the director of lithography and held various leadership positions at the company’s Malta facility. Previously, she served in several technology development roles at GF’s Singapore campus. Ms. Koh earned her master’s degree in materials engineering from Nanyang Technological University in Singapore.
Ms. Koh is also the executive sponsor of the GF Malta GlobalWomen chapter, an employee resource group comprised of a worldwide network of women and allies whose mission is to create a sustainable framework for the professional development of women at GF. Throughout
her career, she has placed a strong emphasis on operational excellence, talent development, inclusion, and mentoring for GF team members as they grow their careers.
“GF and our NY Fab are leading the industry in delivering the feature-rich semiconductors needed to meet the world’s demand for these essential chips. I am so pleased to continue with our tradition of growing GF fab leaders from within our organization, whose leadership, expertise and commitment are the bedrock of our business,” said Dr. Thomas Caulfield, president and CEO of GF. “In her new role as the leader of our more than 2,000 strong manufacturing team in New York, Hui Peng will help ensure that we have the right capabilities and team in place to continue to drive operational excellence and exceed our customers’ expectations while executing on our growth strategy.”
Peter Benyon, GF’s senior vice president and general manager, will retire in early July after leading the Malta facility since July 2019. Prior to that he ran GF’s world-scale 300mm fab in Singapore.
“On behalf of our entire global team, I want to thank and recognize Peter’s countless contributions to GF, which were pivotal in accelerating our growth and value creation, and have set the foundation for our future,” Caulfield added.
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:
Julie Moynehan
Corporate Communications, GF
julie.moynehan@gf.com
518.305.6780
Celebrating Earth Week and Progressing on Our Sustainability Goals
John Compani, Senior Member of the Technical Staff for EHS and CSR, GlobalFoundries
Sustainability and resource conservation are longstanding principles of GF’s global operations. We recognize climate change is an unprecedented global challenge, and we are committed to sustainable manufacturing and minimizing our impact on the environment through continual improvement.
The theme for Earth Day 2023 is “Invest in Our Planet.” This year, GF celebrates Earth Week in honor of Earth Day (April 22). In the spirit of GF’s Earth Week, I would like to highlight a few of GF’s 2022 resource conservation efforts in the following areas: electricity consumption, water usage, greenhouse gas emissions, hazardous waste and chemical usage.
Electricity Consumption
Semiconductor manufacturing requires a significant amount of electricity, and energy conservation is a high priority for GF. In 2022, our sustainability and efficiency efforts produced an annual savings of over 30 thousand megawatt hours (MWh) of electricity – enough to power approximately 2,800 U.S. households for a year.
Example projects included:
- Our fab in Dresden, Germany, reconfigured the operating schedule of turbo air compressors for energy optimization. The change required no capital investment and resulted in savings of 800 MWh/yr of electricity.
- Efficiency improvements implemented for process chilled water flow at GF’s site in Singapore resulted in 2,800 MWh/yr of electricity savings.
Water Usage
As part of our water conservation efforts in 2022, teams across GF implemented projects with a cumulative annual savings of over 800,000 m³ (209 million gallons) of water – about the water used by more than 1,800 average U.S. households in one year. The savings were driven by extensive water reclamation programs in place at our manufacturing facilities, with 39% of our total water use in 2022 covered by recycled and reused water.
Notable initiatives around the globe included:
- Our Singapore fabs achieved a combined 70 percent recycling rate in 2022 through extensive state-of-the-art water recycling capabilities.
- A reclamation project at our fab in Malta, New York, resulted in approximately 318,000 m3/yr of water savings by improved sensing and optimized water treatment in industrial reclaim water tanks.
Greenhouse Gas Emissions
In 2021, GF announced its Journey to Zero Carbon goal to reduce greenhouse gas emissions by 25% from 2020 to 2030, even as the company expands its global manufacturing capacity. To meet the goal of reducing absolute greenhouse emissions by 25%, GF is applying a variety of approaches and investments tailored to our global manufacturing footprint.
Examples of our progress in 2022 includes:
- Numerous energy efficiency projects across the company resulted in more than 3,200 metric tons of carbon equivalents of annual emission reductions related to the generation of electricity
- Our fab in Vermont continued with its multiyear strategic plan to upgrade point of use abatement systems that reduce greenhouse gas emissions in process exhaust streams
- Our Singapore fabs executed multiple process optimizations, including the retrofit or upgrade of process chamber cleaning methods that reduce greenhouse gas emissions.
Hazardous Waste & Chemical Usage
GF has rigorous chemical review and pollution prevention programs across our manufacturing sites, with a focus on source reduction. Source reduction includes activities and projects that minimize the use of chemicals or the generation waste. These activities typically result in reduced consumption, reduced waste, and reduced cost. For 2022, teams across GF completed a variety of projects for a combined benefit of over 300,000 kg (about 660,000 lbs.) per year of reductions in chemical consumption and waste generation.
Examples of GF’s 2022 initiatives included:
- The chemical mechanical planarization team at our fab in Malta, New York, optimized the use of cleaner recipes for certain equipment, realizing a 52% reduction in the use of this chemistry. This saved over 41,000 liters/yr of chemicals and other consumables.
- An improvement to auto cleans at our fab in Dresden, Germany, resulted in reduced chemical consumptions of 30,000 kg/yr.
GF won awards for solvent use reduction projects that directly reduce hazardous waste generation. Most recently our Vermont fab won the EPA 2022 Environmental Merit Award and our Vermont and Malta, NY fabs won 2022 MVP2 (Most Valuable Pollution Prevention) Awards.
The above are some select highlights of our 2022 resource conservation efforts. We will share further details on these and many other sustainability and conservation projects in GF’s forthcoming 2023 Corporate Social Responsibility Report, to be published in June.
In the meantime, click here to learn more about corporate responsibility and ESG at GF.
John Compani is a Senior Member of the Technical Staff with GF’s Global EHS & CSR Team. He is based in Malta, NY with focus on GF’s Environmental Performance, Resource Conservation and Sustainability efforts.
GlobalFoundries Completes Purchase of 800 Acres Adjacent to New York Manufacturing Facility
MALTA, N.Y., April 27, 2023 – GlobalFoundries Inc. (Nasdaq: GFS) (GF) today announced it has completed the purchase of approximately 800 acres of additional land adjacent to its Malta, New York, manufacturing facility. With the purchase, which has been in process since early 2022, GF now owns the entirety of the approximately 1,110-acre park, formerly known as the Luther Forest Technology Campus.
With this additional land, GF has the flexibility to add manufacturing capacity and expand its footprint in New York in alignment with customer demand, and provide space for further development with its ecosystem partners. The rate and pace of GF’s expansion in Malta will be aligned with market conditions, customer commitments, and U.S. federal funding from the CHIPS and Science Act.
“Semiconductors are essential to daily life, and are at the heart of the U.S. economy, domestic supply chains, and national defense. GF stands ready to play a key role in the implementation of the CHIPS Act, which will boost U.S. semiconductor manufacturing by creating a globally competitive framework,” said Steven Grasso, managing director of global government relations at GF. “This land purchase gives us the space and flexibility we need in the near-term to service the growing market demand for secure, reliable U.S.-made chips. This purchase also represents GF’s long-term commitment to New York and growing the semiconductor ecosystem that supports both GF’s world-class manufacturing facility in Malta and the regional semiconductor cluster envisioned by the CHIPS Act.”
GF employs approximately 2,500 people in Malta, New York, and to date has invested more than $15 billion in the facility.
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:
Michael Mullaney
michael.mullaney@gf.com
GlobalFoundries Files Lawsuit Against IBM to Protect its Intellectual Property and Trade Secrets
Accuses IBM of unlawful disclosure to Intel, the Japanese consortium Rapidus and others
MALTA, N.Y., April 19, 2023 – GlobalFoundries (NASDAQ: GFS) (GF) today sued IBM for trade secret misappropriation. The complaint asserts the former semiconductor manufacturing company has unlawfully disclosed GF’s confidential IP and trade secrets, after IBM sold its microelectronics business to GF in 2015. The technology at issue was collaboratively developed, over decades, by the companies in Albany, New York and the sole and exclusive right to license and disclose that technology was transferred to GF upon the sale.
In the legal action filed in federal court in the Southern District of New York, GF asserts that IBM unlawfully disclosed GF IP and trade secrets to IBM partners including Intel and Japan’s Rapidus, a newly formed advanced logic foundry, and by doing so, IBM is unjustly receiving potentially hundreds of millions of dollars in licensing income and other benefits.
The complaint notes that IBM’s executives have described the Intel and Rapidus partnerships as based on decades of technology derived from research conducted at the Albany NanoTech Complex, technology that they had no right to disclose. It also raises concerns over the extent to which IBM may have unlawfully disclosed GF’s IP and trade secrets beyond these two heavily publicized partnerships.
GF is asking for compensatory and punitive damages as well as an injunction against IBM preventing further unlawful disclosure and use of GF’s trade secrets.
In addition, GF’s complaint asserts that IBM is targeting and recruiting GF’s world-class engineering talent at the company’s manufacturing facility, which is located near the Albany NanoTech Complex. In the complaint, GF asks the court to end the unlawful recruitment efforts, which have accelerated since the IBM/Rapidus announcement in December 2022.
GF has made significant investment in research and development to advance its feature-rich technology and is one of the world’s leading semiconductor foundries with a global footprint and more than 13,000 employees, 2,500 of whom are based at the company’s headquarters in upstate New York. GF will aggressively defend its investments in technology against those who violate them, as the complaint demonstrates IBM has repeatedly done.
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
erica.mcgill@gf.com
518-795-5240
RPI News.com: Rensselaer Polytechnic Institute and GlobalFoundries Collaborate in Workforce Education Classes
Accord announces volume production of new line of GNSS receiver IC’s with GlobalFoundries
GlobalFoundries Engineer Receives $50,000 Award for Groundbreaking Technology Advances in Inaugural GFX Prize Program
Additional innovation winners announced for 2023 Master Inventors and DE&I in Inventorship Champion
MALTA, N.Y., April 11, 2023 — GlobalFoundries (Nasdaq: GFS) (GF) announced today the winner of its inaugural GFX Prize. This inaugural award recognizes a single groundbreaking invention from among our GF inventors worldwide. As part of this prestigious program, the GFX Prize awards $50,000 USD.
We are pleased to announce that Dr. Yusheng Bian, a technology development engineer, Master Inventor and 2021 DEI in Inventorship Champion is being recognized for his exceptional invention as part of GF’s commitment to fostering innovation and recognizing outstanding contributions from its inventors.
Dr. Bian, an accomplished inventor with a portfolio of more than 170 patents worldwide and an additional 260 patents pending, has been lauded for his work in silicon photonics technology. His innovation is set to revolutionize high-speed connectivity, greatly enhancing the speed and reliability of data transfer within and between datacenters. Datacenters are crucial for powering the technology that people rely on every day from accessing websites to streaming videos and storing data.
“GF’s patents and awards are the result of our commitment to emerging technology and innovation,” said Gregg Bartlett, chief technology officer of GF. “The GFX Prize program recognizes a truly exceptional group of innovators, pursuing the highest standards of excellence, aligned to GF values. This year’s finalists and Dr. Bian have made significant contributions to GF and their creativity and ingenuity helps GF push the boundaries of what is possible.”
“I am deeply proud to be the first GFX Prize winner,” said Dr. Bian. “Recognizing the work of GF inventors through Patent Week is important since our inventions drive GF innovation and its technology roadmap. Through Patent Week and beyond, GF encourages its global employees to be truly innovative and supports inventors to pursue patenting.”
Launched in 2023, as a part of GF Patent Week, the GFX Prize program supports a company-wide culture of inventorship and innovation by providing employees with the resources and mentorship needed to navigate the patenting process. GF’s inventors play a critical role in driving the company’s technology roadmap and advancing platform innovation for the industry and its customers. Of more than 500 inventions submitted in 2022, only the top five nominees were chosen as the most exceptional inventions.
In addition to the GFX Prize, GF Patent Week recognizes a yearly Master Inventor class as well as a Diversity, Equity and Inclusion (DEI) in Inventorship Champion. This year, six new Master Inventors from the U.S., India, and Europe were recognized by GF. As the highest honor of inventorship at GF, the title of Master Inventor is reserved for employees with at least 20 issued U.S. patents and who have a demonstrated track record of technical accomplishments and intellectual property (IP) asset creation. Now in its sixth year, the program is an elite platform that enhances prolific inventors’ abilities to lead and inspire IP asset creation for the company.
To support an inclusive inventing culture, GF recognized Laura Silverstein, an integration engineer based at the company’s facility in Burlington, Vermont, as its DEI in Inventorship Champion. The recipient of this award is nominated for their hard work in creating a new and more diverse generation of inventors.
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:
Kassidy Berger
kassidy.berger@gf.com