GF Trusted Foundry Training September 25-26, 2024Essex Junction, Vermont Invite-only event showcases key updates to GF’s technology solutions and the value of secure and Trusted design and manufacturing capabilities for the aerospace, defense, and critical infrastructure markets.
GlobalFoundries Reports Second Quarter 2024 Financial Results August 6, 2024 MALTA, N.Y., Aug. 06, 2024 (GLOBE NEWSWIRE) — GlobalFoundries Inc. (GF) (Nasdaq: GFS) today announced preliminary financial results for the second quarter ended June 30, 2024. Key Second Quarter Financial Highlights Revenue of $1.632 billion Gross margin of 24.2% and Non-IFRS gross margin(1) of 25.2% Operating margin of 9.5% and Non-IFRS operating margin(1) of 13.0% Net income of $155 million and Non-IFRS net income(1) of $211 million Non-IFRS Adjusted EBITDA(1) of $610 million Cash, cash equivalents and marketable securities of $4.1 billion Year to date net cash provided by operating activities of $890 million and Non-IFRS adjusted free cash flow of $563 million “In the second quarter, GF delivered financial results that exceeded the mid-point of the guidance ranges we provided in our May earnings release, thanks to the dedication of our employees across the world. We remain focused on a disciplined capex strategy and strong cash flow, with over $500 million of cumulative Non-IFRS adjusted free cash flow generation in the first half of 2024,” said Dr. Thomas Caulfield, president and CEO of GF. “I am proud of how well our teams are partnering with our customers on new design wins, delivering best in class technologies and executing our long-term plans.” Recent Business Highlights GF announced that it has acquired Tagore Technology’s proprietary and production-proven Power Gallium Nitride (GaN) business, including its design team and IP portfolio. The acquisition expands GF’s power IP portfolio and aligns with GF’s objectives to support our customers in the rapidly expanding GaN power devices sector. BAE Systems and GF announced a new collaboration to strengthen the supply of critical semiconductors for national security programs. Together, the companies will collaborate on R&D in a range of areas, including advanced packaging, GaN, silicon photonics and process development. GF released its 2024 Corporate Sustainability Report, which highlights the breadth of GF’s efforts and progress in the areas of sustainability, social responsibility and corporate governance. GF strives to innovate and partner with customers to enable new, smarter and more efficient technologies while also minimizing our impact on the environment, driving positive change and creating lasting value. (1) Non-IFRS gross profit, Non-IFRS operating profit, Non-IFRS net income, Non-IFRS Adjusted 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) Q2’24 Q1’24 Q2’23 Year-over-year Q2’24 vs Q2’23 Sequential Q2’24 vs Q1’24 Net revenue $ 1,632 $ 1,549 $ 1,845 $ (213 ) (12 )% $ 83 5 % Gross profit $ 395 $ 393 $ 532 $ (137 ) (26 )% $ 2 1 % Gross margin 24.2 % 25.4 % 28.8 % (460)bps (120)bps Non-IFRS gross profit(1) $ 411 $ 405 $ 546 $ (135 ) (25 )% $ 6 1 % Non-IFRS gross margin(1) 25.2 % 26.1 % 29.6 % (440)bps (90)bps Operating profit $ 155 $ 147 $ 275 $ (120 ) (44 )% $ 8 5 % Operating margin 9.5 % 9.5 % 14.9 % (540)bps 0bps Non-IFRS operating profit(1) $ 212 $ 187 $ 338 $ (126 ) (37 )% $ 25 13 % Non-IFRS operating margin(1) 13.0 % 12.1 % 18.3 % (530)bps +90bps Net income $ 155 $ 134 $ 237 $ (82 ) (35 )% $ 21 16 % Net income margin 9.5 % 8.7 % 12.8 % (330)bps +80bps Non-IFRS net income(1) $ 211 $ 174 $ 297 $ (86 ) (29 )% $ 37 21 % Non-IFRS net income margin(1) 12.9 % 11.2 % 16.1 % (320)bps +170bps Diluted earnings per share (“EPS”) $ 0.28 $ 0.24 $ 0.43 $ (0.15 ) (35 )% $ 0.04 17 % Non-IFRS diluted EPS(1) $ 0.38 $ 0.31 $ 0.53 $ (0.15 ) (28 )% $ 0.07 23 % Non-IFRS Adjusted EBITDA(1) $ 610 $ 577 $ 668 $ (58 ) (9 )% $ 33 6 % Non-IFRS Adjusted EBITDA margin(1) 37.4 % 37.2 % 36.2 % +120bps +20bps Cash from operations $ 402 $ 488 $ 546 $ (144 ) (26 )% $ (86 ) (18 )% Wafer shipments (300mm equivalent) (in thousands) 517 463 573 (56 ) (10 )% 54 12 % (1) Non-IFRS gross profit, Non-IFRS operating profit, Non-IFRS net income, Non-IFRS diluted EPS, Non-IFRS Adjusted 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 measures are useful. Summary of Third Quarter 2024 Guidance (unaudited in millions USD, except per share amounts)(1) IFRS Share-based compensation Non-IFRS (2) Net revenue $1,700 – $1,750 — $1,700 – $1,750 Gross profit $376 – $425 $13 – $15 $391 – $438 Gross margin(3) (mid-point) 23.2% 24.0% Operating profit $116 – $193 $45 – $55 $171 – $238 Operating margin(3) (mid-point) 9.0% 11.9% Net income (4) $100 – $169 $45 – $55 $155 – $214 Net income margin(3) (mid-point) 7.8% 10.7% Diluted EPS $0.18 – $0.30 $0.28 – $0.38 (1) The Guidance provided 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 measures 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 measures 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). (4) Included in net income is net interest income and other income and expense which we estimate will be between $0 and $7 million for the third quarter 2024. Also included in net income is income tax expense which we estimate will be between $16 million and $31 million for the third quarter 2024. Unaudited Consolidated Statements of Operations Three Months Ended (in millions USD, except for per share amounts) June 30, 2024 June 30, 2023 Net revenue $ 1,632 $ 1,845 Cost of revenue 1,237 1,313 Gross profit $ 395 $ 532 Operating expenses: Research and development 121 106 Selling, general and administrative(1) 114 132 Restructuring charges 5 19 Total operating expenses $ 240 $ 257 Operating profit $ 155 $ 275 Finance income (expense), net 16 — Other income (expense) (4 ) (10 ) Income tax expense (12 ) (28 ) Net income $ 155 $ 237 Attributable to: Shareholders of GlobalFoundries 155 240 Non-controlling interest — (3 ) EPS: Basic $ 0.28 $ 0.43 Diluted $ 0.28 $ 0.43 Shares used in EPS calculation (in millions): Basic 554 552 Diluted 557 556 (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) June 30, 2024 December 31, 2023 Assets: Cash and cash equivalents $ 2,184 $ 2,387 Receivables, prepayments and other 1,127 1,420 Marketable securities 1,183 1,033 Inventories 1,786 1,487 Current assets $ 6,280 $ 6,327 Deferred tax assets $ 211 $ 241 Property, plant, and equipment, net 9,234 9,829 Right of use assets 510 335 Marketable securities 778 468 Other assets 914 844 Non-current assets $ 11,647 $ 11,717 Total assets $ 17,927 $ 18,044 Liabilities and equity: Current portion of long-term debt $ 534 $ 571 Other current liabilities 2,300 2,528 Current liabilities $ 2,834 $ 3,099 Non-current portion of long-term debt $ 1,687 $ 1,801 Non-current portion of lease obligations 445 350 Other liabilities 1,662 1,643 Non-current liabilities $ 3,794 $ 3,794 Total liabilities $ 6,628 $ 6,893 Shareholders’ equity: Common stock / additional paid-in capital $ 23,925 $ 24,038 Accumulated deficit (12,713 ) (13,001 ) Accumulated other comprehensive income 40 67 Non-controlling interest 47 47 Total liabilities and equity $ 17,927 $ 18,044 Unaudited Consolidated Statements of Cash Flows Three Months Ended (in millions USD) June 30, 2024 June 30, 2023 Cash flows from operating activities: Net income $ 155 $ 237 Depreciation and amortization 402 340 Finance (income) expense, net and other (28 ) (14 ) Deferred income taxes 6 24 Other non-cash operating activities 35 50 Net change in working capital (168 ) (91 ) Net cash provided by operating activities $ 402 $ 546 Cash flows from investing activities: Purchases of property, plant, equipment, and intangible assets $ (101 ) $ (400 ) Other investing activities (69 ) (488 ) Net cash used in investing activities $ (170 ) $ (888 ) Cash flows from financing activities: Proceeds from issuance of equity instruments and other $ — $ 9 Purchases of treasury stock (200 ) — Proceeds (repayment) of debt, net (94 ) (87 ) Other financing activities — (4 ) Net cash used in financing activities $ (294 ) $ (82 ) Effect of exchange rate changes (1 ) — Net change in cash and cash equivalents $ (63 ) $ (424 ) Cash and cash equivalents at the beginning of the period 2,247 2,256 Cash and cash equivalents at the end of the period $ 2,184 $ 1,832 Unaudited Reconciliation of IFRS to Non-IFRS Three Months Ended (in millions, except for per share amounts) June 30, 2024 March 31, 2024 June 30, 2023 Net Revenue $ 1,632 $ 1,549 $ 1,845 Gross profit $ 395 $ 393 $ 532 Gross margin 24.2 % 25.4 % 28.8 % Share-based compensation 16 12 14 Non-IFRS gross profit(1) $ 411 $ 405 $ 546 Non-IFRS gross margin(1) 25.2 % 26.1 % 29.6 % Selling, general and administrative(2) $ 114 $ 122 $ 132 Share-based compensation 28 21 24 Non-IFRS selling, general and administrative(1) $ 86 $ 101 $ 108 Research and development $ 121 $ 124 $ 106 Share-based compensation 8 7 6 Non-IFRS research and development(1) $ 113 $ 117 $ 100 Operating profit $ 155 $ 147 $ 275 Operating margin 9.5 % 9.5 % 14.9 % Share-based compensation 52 40 44 Restructuring charges 5 — 19 Non-IFRS operating profit(1) $ 212 $ 187 $ 338 Non-IFRS operating margin(1) 13.0 % 12.1 % 18.3 % Net income $ 155 $ 134 $ 237 Net income margin 9.5 % 8.7 % 12.8 % Share-based compensation 52 40 44 Restructuring charges 5 — 19 Income tax effect(3) (1 ) — (3 ) Non-IFRS net income(1) $ 211 $ 174 $ 297 Non-IFRS net income margin(1) 12.9 % 11.2 % 16.1 % Diluted EPS $ 0.28 $ 0.24 $ 0.43 Share-based compensation 0.09 0.07 0.08 Restructuring charges 0.01 — 0.03 Income tax effect(3) — — (0.01 ) Diluted shares outstanding 557 558 556 Non-IFRS diluted EPS(1) $ 0.38 $ 0.31 $ 0.53 (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. Unaudited Non-IFRS Adjusted Free Cash Flow(1) Three Months Ended (in millions USD) June 30, 2024 March 31, 2024 June 30, 2023 Net cash provided by operating activities $ 402 $ 488 $ 546 Less: Purchase of property, plant and equipment and intangible assets (101 ) (227 ) (400 ) Add: Proceeds from government grants 1 — — Non-IFRS Adjusted free cash flow(2) $ 302 $ 261 $ 146 (1) Non-IFRS Adjusted 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 Adjusted 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 Adjusted 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. Unaudited Reconciliation of Net Income to Non-IFRS Adjusted EBITDA Three Months Ended (in millions USD) June 30, 2024 March 31, 2024 June 30, 2023 Net revenue $ 1,632 $ 1,549 $ 1,845 Net income for the period 155 134 237 Net income margin 9.5 % 8.7 % 12.8 % Depreciation and amortization 402 392 340 Finance expense 37 37 34 Finance income (53 ) (47 ) (34 ) Income tax expense (benefit) 12 21 28 Share-based compensation 52 40 44 Restructuring charges 5 — 19 Non-IFRS Adjusted EBITDA(1)(2) $ 610 $ 577 $ 668 Non-IFRS Adjusted EBITDA margin(1)(2) 37.4 % 37.2 % 36.2 % (1) For the periods presented, there were no labor optimization expenses or divestiture gains and associated expenses, legal settlements and transaction expenses. (2) Non-IFRS Adjusted 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 International Financial Reporting Standards (“IFRS”), this press release includes the following Non-IFRS measures: 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 Adjusted EBITDA, Non-IFRS Adjusted 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 Adjusted 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 Adjusted 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 Adjusted EBITDA margin as Non-IFRS Adjusted 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 Adjusted 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 the “Unaudited Reconciliation of IFRS to Non-IFRS” table. Non-IFRS financial information is presented for supplemental informational purposes only and should not be considered in isolation or as a substitute for financial information presented in accordance with IFRS. Our presentation of Non-IFRS measures should not be construed as an inference that our future results will be unaffected by unusual or nonrecurring items. Other companies in our industry may calculate these measures differently, which may limit their usefulness as a comparative measure. Conference Call and Webcast Information GF will host a conference call with the financial community on Tuesday, August 6, 2024 at 8:30 a.m. U.S. Eastern Time (ET) to review the second quarter 2024 results in detail. Interested parties may join the scheduled conference call by registering at https://register.vevent.com/register/BI37c404d6b7914c8d93e4d8948ef79438. 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; domestic political developments, including with respect to the upcoming U.S. presidential election; 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]
GlobalFoundries Announces Conference Call to Review Second Quarter 2024 Financial Results July 8, 2024 MALTA, N.Y., July 08, 2024 (GLOBE NEWSWIRE) — GlobalFoundries (NASDAQ: GFS) today announced that it will host a conference call on Tuesday, August 6, 2024, at 8:30 a.m. ET following the release of the company’s second quarter 2024 financial results. Conference Call and Webcast Information The company will host a conference call with the financial community on Tuesday, August 6, 2024, at 8:30 a.m. ET. Interested parties may join the scheduled conference call by registering here. The company’s financial results and a webcast of the conference call will be available on GlobalFoundries’ Investor Relations website at https://investors.gf.com. About GF GlobalFoundries (GF) is one of the world’s leading semiconductor manufacturers. GF is redefining innovation and semiconductor manufacturing by developing and delivering feature-rich process technology solutions that provide leadership performance in pervasive high growth markets. GF offers a unique mix of design, development and fabrication services. With a talented and diverse workforce and an at-scale manufacturing footprint spanning the U.S., Europe and Asia, GF is a trusted technology source to its worldwide customers. For more information, visit www.gf.com. ©GlobalFoundries Inc. GF, GlobalFoundries, the GF logos and other GF marks are trademarks of GlobalFoundries Inc. or its subsidiaries. All other trademarks are the property of their respective owners. For further information, please contact: [email protected]
GlobalFoundries Acquires Tagore Technology’s GaN Technology to Accelerate Disruptive Power Management Solutions July 1, 2024 Technology acquisition expands GF’s power management solutions and differentiated roadmap MALTA, N.Y., July 1, 2024 – GlobalFoundries (Nasdaq: GFS) (GF) today announced that it has acquired Tagore Technology’s proprietary and production proven Power Gallium Nitride (GaN) IP portfolio, a high-power density solution designed to push the boundaries of efficiency and performance in a wide range of power applications in automotive, internet of things (IoT) and artificial intelligence (AI) datacenter. As the digital world continues to evolve with technologies like Generative AI, GaN stands out as a pivotal solution for sustainable and efficient power management particularly in datacenters. Today’s announcement reinforces GF’s commitment to large-scale manufacturing of GaN technology that offers a suite of benefits to help datacenters meet the increasing power demands while maintaining or improving power efficiency, reducing costs and managing heat generation. The acquisition expands GF’s power IP portfolio and broadens access to market leading GaN IP that will enable GF customers to quickly bring differentiated products to market. As a part of the acquisition, a team of experienced engineers from Tagore, dedicated to the development of GaN technology, will be joining GF. “We are committed to being the foundation of our customers’ power applications today and for decades to come,” said Niels Anderskouv, chief business officer at GF. “With this acquisition, GF takes another step toward accelerating the availability of GaN and empowering our customers to build the next generation of power management solutions that will reshape the future of mobility, connectivity and intelligence.” “The accelerating demand for more power efficient semiconductors is dramatically increasing, and Tagore has been at the forefront of developing disruptive solutions using GaN technology for a wide range of power devices,” said Amitava Das, co-founder and chief operating officer of Tagore Technology. “The team and I are excited to join GlobalFoundries to increase our focus on market-leading IP that will help address power design challenges and support the continued evolution of automotive, industrial and AI datacenter power delivery systems.” In February 2024, GF was awarded $1.5 billion in direct funding under the U.S. CHIPS and Science Act, part of that investment is targeted towards enabling the high-volume manufacturing of critical technologies including GaN to securely produce more essential chips. Combining this manufacturing capacity with the technical know-how of the Tagore team, GF is set to transform AI system efficiency, especially in edge or IoT devices, where reduced power consumption is critical. “GlobalFoundries is at the forefront of technological advancements. With Tagore Technology joining the GF India team, we will further enhance our tech capabilities, particularly in emerging areas like GaN,” said Jitendra Chaddah, vice president and India country head at GF. “I welcome the Tagore team to GF, and I am excited about the work we will do as we continue to grow and strengthen our engineering capabilities together.”About Tagore Technology Inc.Tagore Technology was founded in January 2011 to pioneer Gallium Nitride-on-Silicon (GaN-on-Si) semiconductor technology for Radio Frequency (RF) and power management applications. We are a fabless semiconductor company with design centers in Arlington Heights, Illinois, USA, and Kolkata, India. Our R&D team is dedicated to developing disruptive solutions leveraging wide bandgap technologies that help address RF and power design challenges for our customers and accelerate time-to-market for a wide range of applications. For more information visit www.tagoretech.com. About GFGlobalFoundries (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 InformationThis news release may contain forward-looking statements, which involve risks and uncertainties. Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. GF undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, unless required by law. Media Contact:Erica McGill[email protected]+1-518-795-5240
GF Publishes 2024 Sustainability Report June 27, 2024 By Brian Raley Director of Corporate Environmental, Health, and Safety and Sustainability, GlobalFoundries It is my pleasure to announce GlobalFoundries (GF) has published its 2024 Sustainability Report. This comprehensive report is a testament to our company’s longstanding commitment to corporate responsibility and doing the right thing for our global team, our communities and the planet. The achievements highlighted in the 2024 Sustainability Report are the culmination of efforts from nearly every area of our business. Throughout its pages, you’ll read about a range of topics. From employee health and safety, to resource conservation and sustainable manufacturing. From fostering a secure and responsible supply chain, to the way we engage with our communities and other stakeholders, and so much more. Below are a few examples of stories and information you’ll find: GF’s new goal of achieving net zero greenhouse gas emissions by 2050 GF’s commitment to employee safety, achieving 2023 results that surpass our 2022 best-in-class performance. Chips made by GF are in the James Webb telescope and have traveled to Mars and beyond the moons of Jupiter to pioneer new discoveries. GF winning the “Equity 100 Award” from the Human Right’s Campaign for being a leader in LGBTQ+ workplace inclusion. The good we are doing in our communities, with GF and its employees collectively donating more than $1.3 million USD in 2023 to support 1,443 charities globally. Our four global manufacturing sites having earned the maximum score of 200, with zero finding, in their most recent Responsible Business Alliance audits. This work is in service to GF’s mission of innovating and partnering with customers to deliver solutions for humanity; our vision of changing the industry that is changing the world; and our living our values “Create, Embrace, Partner and Deliver” always with unyielding integrity. For many of us at GF, this work goes beyond our professional life and duties. This sentiment is reflected in the words Dr. Thomas Caulfield, president and CEO of GF, wrote in his introduction to the report: “This is a calling for us as companies, organizations and individuals to take responsibility and personal ownership of these important topics. We owe this to ourselves and future generations.” I invite you to read through GF’s 2024 Sustainability Report, learn more about the meaningful outcomes achieved by our talented team, and see how this work reflects our company’s ongoing commitment to doing the right thing. Brian Raley is the Director of Corporate Environmental, Health, and Safety and Sustainability at GlobalFoundries. Based in Malta, New York, Brian has been with GF since its founding in 2009. He has focused on sustainability efforts in the semiconductor industry for 29 years.
BAE Systems and GlobalFoundries Collaborate to Strengthen Supply of Essential Semiconductors for National Security Programs June 20, 2024 Collaboration to focus on U.S. chip manufacturing and joint research and development for advanced chip technologies MALTA, N.Y., June 20, 2024 — BAE Systems (LON: BA) and GlobalFoundries (Nasdaq: GFS) (GF) today announced a new collaboration to strengthen the supply of critical semiconductors for national security programs. Under the strategic agreement, the companies will align technology roadmaps and collaborate on long-term strategies for increasing U.S. semiconductor innovation and manufacturing, with the joint goal of advancing the ecosystem for domestic fabrication and packaging of secure chips and solutions for use in aerospace and defense systems. Together, the companies will engage in long-term planning for emerging technologies and collaborate on research and development in a range of areas, including advanced semiconductor packaging and integration, gallium nitride on silicon chips, silicon photonics and advanced technology process development. The new non-exclusive collaboration builds upon the longtime relationship between BAE Systems and GF, and further brings together BAE Systems’ expertise in microelectronics for critical defense systems with GF’s expertise as one of the world’s leading high-volume semiconductor manufacturers and the most advanced supplier of secure, essential chips to the U.S. Department of Defense (DoD). Both BAE Systems and GF were recently named as recipients of planned direct funding from the U.S. government as part of the CHIPS and Science Act. “Our leadership in microelectronics for critical defense systems is predicated on a reliable and secure supply chain and the availability of trusted, uncompromised semiconductors,” said Terry Crimmins, president of BAE Systems’ Electronic Systems sector. “This new collaboration with GlobalFoundries, with its expertise in secure chip manufacturing, is imperative for BAE Systems to advance the overmatch thresholds of technologies, stay ahead of the increasingly complex defense environment, and enable creative solutions to mitigate the growing challenges to both the integrity of microelectronics and their associated supply chains.” “GF is committed to strengthening the semiconductor supply chain for national security and innovating to meet the future needs of the aerospace and defense sector,” said Dr. Thomas Caulfield, president and CEO of GF. “We are proud to deepen our strategic relationship with BAE Systems, and further strengthen supply chain resiliency. Together, we will accelerate the research and development of a new generation of essential technologies and securely manufacture essential chips for a diverse range of critical defense applications.” A recent example of successful collaboration between the two companies, BAE Systems leveraged GF’s 12LP and 12S0 technology platforms for custom radiation-hardened by design semiconductor solutions for sensitive space applications. These highly differentiated U.S.-made chips enable electronic systems to withstand the harsh environment of space, while offering power efficiency, area benefits, and a robust design ecosystem to enable cost-efficient and quick-turn prototyping. These chips deliver the performance, reliability and yield of GF’s high-volume commercial sector offerings, tailored to the needs of the aerospace and defense industry by BAE Systems, and manufactured by GF with the right level of security – up to the DoD’s highest security level, Trusted Supplier Category 1A. GF’s U.S. manufacturing facilities have Trusted Foundry accreditation from the U.S. government to securely manufacture chips in partnership with the DoD Defense Microelectronics Activity (DMEA) for use in some of the nation’s sensitive national security and critical infrastructure systems on land, air, sea and in space. In 2023, the DoD awarded GF a new $3.1 billion, 10-year contract for a supply of securely manufactured, U.S.-made semiconductors for use across a wide range of critical aerospace and defense applications. The new contract was the third sequential 10-year contract of its kind between the DoD and the Trusted Foundry business team at GF. About BAE Systems BAE Systems, Inc. and its nearly 41,000 people are part of a global defense, aerospace, and security company with approximately 100,000 employees worldwide. We deliver products and services for air, land, sea, and space, as well as advanced electronics, intelligence, security, and IT solutions and support services. Our dedication shows in everything we design, produce and deliver— to protect those who protect us in a high-performance, innovative culture. We push the limits of possibility to provide a critical advantage to our customers where it counts. 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: BAE Systems Paul Roberts [email protected] GlobalFoundries Michael Mullaney [email protected]
Bits in Space: Connecting the World with Satellite Technology June 18, 2024 Alexandros Margomenos, GlobalFoundries Director RF Product Management As recently as just a few decades ago, the idea of delivering broadband and cellular connectivity from space was a futuristic dream. Fast forward to today, and this dream is rapidly becoming a reality. Advances in satellite technology are revolutionizing global connectivity. These types of advancements are powered by essential innovations in semiconductor technology, like those we are pioneering here at GlobalFoundries, which are helping to bring high-speed communication to every corner of the globe, even the most remote areas. These innovations are essential for creating immersive user experiences and transforming industries. So, How Does It Work? You may be asking, what do all these satellites mean, and how does it impact me? Let’s break it down. There are two main types of satellites used for communication: Geosynchronous (GEO) and Low Earth Orbit (LEO) satellites. GEO Satellites: These orbit 36,000 km above the Earth and stay fixed over one spot. They can cover large areas with just a few satellites but have higher latency (delay) because of their distance. LEO Satellites: These orbit much closer to Earth, between 500 to 1,200 km. They provide lower latency (less delay) and faster internet speeds but require many more satellites to cover the globe because they move quickly across the sky. LEO satellites travel at nearly 25 times the speed of sound, enabling significantly lower latency (<20 milliseconds). Connecting the Dots: How Satellites Communicate Satellite networks include four types of communication links. In all cases, the downlink from the satellite is at a lower frequency compared to the uplink to optimize the power amplifiers on the satellite. User Link: Connects the satellite to your home or mobile device. This is how you receive data from the satellite. Feeder Link: Connects the satellite to ground stations (gateway terminals), linking the satellite network to the terrestrial internet. Telemetry, Tracking, and Command (TT&C) Link: Manages the satellite’s operations, ensuring they stay on course and function correctly. Intersatellite Links (ISL): Allow satellites to talk to each other, transferring data and coordinating handoffs as they orbit. Typically, user, feeder, and TT&C links use RF and millimeter-wave frequencies, while ISL links can utilize both millimeter-wave frequencies and optical communications. To put it simply, think of it as a relay race. The user link is like the baton passed from the satellite to your device. The feeder link is the baton passed from the satellite to the ground station, connecting you to the wider internet. The TT&C link ensures the satellites stay on course, much like a coach guiding the runners. Finally, ISLs are like runners passing the baton between each other to ensure seamless coverage as they orbit the Earth. The Evolution of Satellite Antennas Imagine those old satellite systems: giant, rigid dish antennas—like the ones you might see in old movies. These large dishes were excellent for sending focused signals but lacked flexibility. They could only point in one direction at a time and needed to be physically moved to change their focus. Today, the game has changed with the advent of phased array antennas. Instead of one big dish, think of these antennas as being made up of thousands of tiny elements, each capable of steering a part of the signal. These elements work together to create a powerful, flexible system that can direct beams electronically, without any moving parts. This technological leap means that modern satellites can connect to multiple places at once, seamlessly switching between different targets. It’s like having a spotlight that can instantly shine in any direction, or even multiple directions at once, without physically moving. Choosing the Right Technology Creating these advanced satellite systems requires selecting the right semiconductor technology. Key considerations include the type of beamforming (analog, digital, or hybrid), system design (placing amplifiers close to antennas vs. integrating them with beamformers) and achieving a low noise figure (NF) for better performance. Lower NF means fewer required elements, simplifying design and reducing costs, making the system more efficient overall. Powering the Future of Connectivity At GF, we offer a wide range of technologies supporting all the components necessary for creating any possible configuration of satellite communication phased arrays. Here are some of our key technologies: 130NSX: Perfect for ground terminals, offering excellent performance for smaller phased arrays. High-Performance SiGe: Efficient power amplifiers and low noise for high-volume manufacturing. 9SW and 45RFSOI: Advanced RF SOI technologies optimized for beamformers, ensuring high efficiency and low noise. 22FDX: Combines high-density logic and memory, ideal for digital beamformers and integrated systems. By leveraging these essential technologies, we are helping to create satellite systems that are more efficient, cost-effective, and capable of bringing high-speed connectivity to every corner of the globe. Significant progress has been made to expand access and adoption of broadband services. The number of internet users doubled between 2010 and 2020, reaching over 4 billion users worldwide. As we continue to innovate and develop these technologies, the dream of connecting the next 4 billion people is closer than ever.
GlobalFoundries Joins CHIPS Women in Construction Framework June 18, 2024 GF commits to framework of U.S. Commerce Secretary Gina Raimondo’s “Million Women in Construction” Initiative MALTA, N.Y., June 18, 2024 — GlobalFoundries announced today a commitment to the U.S. Department of Commerce’s CHIPS Women in Construction Framework, a set of five best practices intended to increase representation of women and economically disadvantaged individuals in the construction workforce. The Framework is part of U.S. Secretary of Commerce Gina Raimondo’s ongoing Million Women in Construction initiative that aims to expand the American construction workforce by doubling the number of women in construction over the next decade. GF Chief People Officer Pradheepa Raman announced the company’s commitment at the “CHIPS Women in Construction Roundtable” event at the White House. In voluntarily committing to the Framework, GF is agreeing to work with contractors, trade unions, and other community and workforce partners to implement best practices that will expand the construction workforce by increasing the participation of women and economically disadvantaged individuals. These recruitment and retention best practices will help support on-time and successful completion of CHIPS program-funded projects. “At GlobalFoundries, we celebrate our diversity and are steadfast in our commitment to shaping the future of the semiconductor industry. Every day, our talented team is pushing the boundaries of innovation to shape essential technologies that are making the world a better place,” Raman said. “We applaud the leadership of Secretary Raimondo in taking action to diversify our nation’s workforce. GlobalFoundries is proud to commit to the Department of Commerce’s CHIPS Women in Construction Framework. A more diverse construction workforce benefits all of us, strengthening our industry and our communities.” The five best practices GF is committing to adopt are: Set goals and monitor progress towards increasing the participation of women on CHIPS-funded construction projects. Build community partnerships with community organizations with a track record of increasing women and economically disadvantaged individuals’ exposure to and recruitment into the construction industry. Develop training pathways such as training investments, apprentice utilization goals, or apprentice readiness program partnerships that serve women and economically disadvantaged individuals. Provide access to supportive services such as child care or transportation that will increase retention of women and economically disadvantaged individuals in the workforce. Maintain healthy, safe, and respectful workplaces and prevent and address harassment, discrimination, retaliation, and violence through workplace training, policy and practice. In the coming months, GF will work with the CHIPS Program Office (CPO), the Department of Commerce, and collaborate with local partners, such as contractors, trades unions and community-based organizations to develop and implement activities carrying out the best practices. GF’s support of CHIPS Women in Construction framework is the company’s latest effort to support workplace diversity and build a critical talent pipeline for the current and future workforce. In May, GF announced a partnership with Micron Technology and the U.S. National Science Foundation to invest in workforce development at Minority Serving Institutions (MSI) to help meet the growing workforce needs of the U.S. semiconductor ecosystem and help develop the next generation of talent for the industry. 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. 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 [email protected]
