U.S. Government Awards GlobalFoundries New $3.1 Billion, 10-Year Contract for Secure Chip Manufacturing September 21, 2023 With $3.1 billion spending ceiling, new 10-year contract provides U.S. Dept. of Defense an assured supply of securely manufactured semiconductors for use in the nation’s most sensitive applications MALTA, N.Y., Sept. 21, 2023 – The U.S. Department of Defense (DoD) has awarded GlobalFoundries (Nasdaq: GFS) (GF) a new 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. With an initial award of $17.3 million this month and an overall 10-year spending ceiling of $3.1 billion, the new contract provides the DoD and its contractors with access to GF’s semiconductor technologies manufactured at its U.S. facilities. These GF facilities are DoD-accredited to the highest security level, Trusted Supplier Category 1A, which implements proven stringent security measures to protect sensitive information and manufacture chips with the highest levels of integrity to ensure they are uncompromised. In addition to secure chip manufacturing for DoD systems used on land, air, sea, and in space, the new contract provides the DoD and its contractors with access to GF’s robust design ecosystem, IP libraries, early-access to new technologies in development, quick and efficient prototyping, and full-scale volume manufacturing. The contract was awarded through the DoD’s Defense Microelectronics Activity (DMEA) Trusted Access Program Office (TAPO). “GF is proud to begin this new chapter of our decades-long partnership with the U.S government, and to continue serving as the leading supplier of securely manufactured essential chips for the U.S. aerospace and defense industry,” said Mike Cadigan, chief corporate and government affairs officer at GF. “This partnership provides DoD programs with ‘front-door access’ to advanced technologies in a way that is scalable and highly efficient. For this work, GF is accredited to provide the right level of security required for each program, from GF’s industry leading GF Shield protections, to strictly export controlled handling (e.g. ITAR), to the highest level of accredited microelectronics manufacturing security on the planet, Trusted Category 1A.” This new contract is the third sequential 10-year contract of its kind between the DoD and the Trusted Foundry business team at GF and is the latest milestone in the longstanding partnership between the department and the company. Click here to learn more about the importance and impact of GF’s Trusted Foundry accreditations. 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]
GlobalFoundries Officially Opens US$4 Billion Expansion Facility in Singapore, Creating 1,000 New Jobs September 12, 2023 The new facility, which broke ground in 2021, will bolster GF’s global manufacturing footprint across Singapore, the U.S., and Europe to provide customers with capacity to enhance supply chain flexibility and business resilience SINGAPORE, SEPTEMBER 12, 2023 – GlobalFoundries (NASDAQ: GFS) (GF) today announced the official opening of its US$4 billion (S$5 billion) expansion fabrication plant (“fab”) in Singapore. The 23,000sqm fab will create 1,000 high-value jobs in Singapore, 95 percent of which will include equipment technicians, process technicians and engineers. The official opening ceremony was graced by Mr. Lawrence Wong, Singapore’s Deputy Prime Minister and Minister for Finance, alongside Mr. Ahmed Yahia Al Idrissi, Chairman of the GF Board of Directors, additional GF Board members and GF executives including President and Chief Executive Officer Dr. Thomas Caulfield, Chief Manufacturing Officer Kay Chai (KC) Ang, and Senior Vice President and General Manager of GlobalFoundries Singapore Tan Yew Kong, among others. Sorry, this video requires cookie consent. Please accept marketing-cookies to watch this video. The new facility will boost GF’s global manufacturing footprint and reinforce the company’s ability to deliver product security and flexibility to customers across its manufacturing sites in three continents. As Singapore’s most advanced semiconductor facility to date, the expansion fab will produce an additional 450,000 wafers (300mm) annually, raising GF Singapore’s overall capacity to approximately 1.5 million wafers (300mm) each year. “We are thrilled to ramp our operations at the Singapore expansion site. This site is instrumental in ensuring that we have the capacity our customers need as they seek to strengthen their supply chains,” said Dr. Thomas Caulfield, president and CEO of GlobalFoundries.“This new facility is the result of our close partnership with our customers and the Singapore government, and testament to the hard work and effort put in by our employees.” Singapore’s semiconductor output currently makes up 11 percent of the global semiconductor market. This is set to grow as the country advances towards its Manufacturing 2030 vision to become a global hub for advanced manufacturing. GF stands ready to support the growth in demand for essential semiconductor chips. “GlobalFoundries’ fab expansion in Singapore will extend its leadership in semiconductor manufacturing, amid expectations of robust long-term growth for the sector. The new facility will invigorate Singapore’s sophisticated semiconductor ecosystem that serves different parts of the value chain, through the creation of 1,000 good jobs and partnerships with local small-and-medium enterprises. EDB looks forward to working towards the next milestone with GlobalFoundries,” said Ms. Jacqueline Poh, Managing Director of EDB. The new facility spans a cleanroom space of over 23,000 sqm. The first tool was moved into the facility in June 2022, just within a year of the groundbreaking ceremony. The building’s design is engineered to prioritise sustainability, earning both the Administration and Manufacturing buildings Green Mark Gold status from Singapore’s Building and Construction Authority. It is outfitted with the latest technologies and solutions to manage resources and waste, recycle and reuse water and increase overall energy efficiency. ### 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 Luana LowGlobalFoundries[email protected]
GlobalFoundries Enhances Technology Platforms to Enable Critical Applications for Next Generation Electric and Autonomous Vehicles August 29, 2023 New solutions support demand for improved power performance and efficiency, safety and connectivity SAN JOSE, C.A. August 29, 2023 – At its annual Technology Summit beginning today, GlobalFoundries (GF) (Nasdaq: GFS), announced advancements for two of its technology platforms that will support the growing demand for the technologies needed for autonomous, connected and electrified vehicles. The 40ESF3 AutoPro™ 175 technology will be part of GF’s existing AutoPro™ platform, which provides GF’s automotive customers a broad set of technology solutions and manufacturing services that minimize certification efforts and speed time-to-market. With a junction temperature of 175°C, this technology is suited to manage the critical functions of a vehicle under temperature extremes. “By leveraging this 40nm technology on GF’s AutoPro platform, Bosch will continue to build cutting-edge solutions that address the growing needs of the automotive industry for software-defined vehicles that rely on complex electronics systems that are controllable and reliable,” said Jens Fabrowsky, Executive Vice President Automotive Electronics at Robert Bosch GmbH. In addition, GF is advancing its portfolio of power management solutions with its 130BCDLite Gen2 ATV125, part of GF’s BCD/BCDLite® platforms. The technology will enable multiple automotive applications, allowing for die shrink and higher conversion efficiency for products requiring up to 40V, while also meeting the rigorous Auto Grade 1 qualification—a standard indicating the component’s reliability in extreme automotive temperatures. Over 30 customers are currently engaged on the 130BCD/BCDLite platforms, enabling them to efficiently develop products with cost-effective integration of diverse functionality with power devices across a wide range of voltages. “As a highly innovative company, Inova Semiconductors is expecting the same from its suppliers as we continue to provide to our global automotive customers reliable, high-quality chips enabling easier, faster, and more reliable communication inside the vehicle. We are pleased to collaborate with GlobalFoundries on new technologies that meet and exceed the demands of the industry,” said Robert Kraus, CEO at Inova Semiconductors. As vehicles transition from mechanical to electronic systems, the number of semiconductor chips they house has soared. A typical car uses approximately 1000 chips, with some electric vehicles boasting over 3,000. As consumer demand grows, this number will only increase. “The shift from internal combustion engines (ICE) to autonomous, connected, and electrified (ACE) requires vehicle re-architecture. GF is perfectly positioned for this shift, and our recent technology advances support increased safety, enhanced user experience, and sustainability through vehicle electrification,” GF Chief Business Unit Officer Mike Hogan said. Both technologies are planned to be fully qualified and released into production by September 2023, and will help ensure technology readiness, operational excellence, and a robust automotive-ready quality system to continually improve quality and reliability throughout the product life cycle. About GTS: GF Technology Summit (GTS) 2023 is GF’s worldwide, annual series of technology-focused events. GTS brings together leaders from the commercial, business and research worlds to understand the latest technology challenges and opportunities, and partner to create the most innovative applications and solutions. About 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: Erica McGillGF[email protected]518-795-5240
GlobalFoundries Announces 9SW RFSOI Technology for Next-Generation Mobile and 5G Applications August 29, 2023 Builds on 8SW for Reduced Power, Improved Efficiency, and Better Performance Enabling Stronger Connections SAN JOSE, C.A., August 29, 2023 – At its annual Technology Summit beginning today, GlobalFoundries (GF) (Nasdaq: GFS), announced advancements in the industry’s first RFSOI foundry solution manufactured on 300mm wafers. Building upon its 8SW RFSOI technology and designed in collaboration with key customers, GF’s 9SW RFSOI technology is GF’s most advanced RF solution and will offer significant improvements in performance, integration and area advantages in front-end modules (FEMs) for today’s 5G operating frequencies, as well as future 5G mobile and wireless communication applications, spanning Sub-8 GHz, mmWave and FR3. GF’s 9SW technology offers a low-cost, low-power, highly flexible solution for RF Front End Applications, improving on 8SW with superior switching, low-noise amplifiers (LNA) and logic processing capabilities. The technology features significant reduction in standby currents for longer battery life, creating products over 10% smaller than previous generations with more than 20% enhancement in efficiency through lower on-resistance and off-capacitance. The technology is more energy-efficient, lowering power consumption in both inactive and active states. It’s designed to enable the features customers want most – extremely fast downloads and longer battery life with higher quality and longer-range connectivity. “Developing high-speed, more reliable connectivity is critical for the key 5G mobile and next-generation applications that we all depend on to live, work and play,” said David Archbold, vice president of product marketing, Wireless Semiconductor Division, Broadcom. “With this new generation of technology, Broadcom will enable our customers to deliver the best possible 5G mobile experience to their end users.” “Wireless Connectivity comes in many shapes and sizes. GF has long standing leadership, in highly efficient wireless whether it’s short, medium, or long range. The ever-increasing reliance on 5G and smart mobile devices combined with the explosion of data necessitates more connectivity and improved efficiency. GF’s newest generation of industry-leading RF SOI technologies will allow us to meet the global demand for solutions that deliver more reliable seamless connectivity, while using significantly less power,” said GF President and CEO Dr. Thomas Caulfield. The advanced 9SW technology will be manufactured on GF’s 300mm production line at its fabrication site in Singapore and will provide the industry with manufacturing capacity to meet expected market demand. About GTS: GF Technology Summit (GTS) 2023 is GF’s worldwide, annual series of technology-focused events. GTS brings together leaders from the commercial, business and research worlds to understand the latest technology challenges and opportunities, and partner to create the most innovative applications and solutions. About 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: Erica McGillGF[email protected]518-795-5240
BrainChip Receives First Shipment of AKD1500 Chips in Silicon from Technology Partner GlobalFoundries August 28, 2023
GlobalFoundries Unveils Key Innovations at Technology Summit 2023 August 28, 2023 Spotlight on Power Management, RF Connectivity, Intelligent and Secure Solutions SAN JOSE, C.A., August 28, 2023 – At its annual Technology Summit beginning tomorrow, GlobalFoundries (Nasdaq: GFS), is spotlighting its differentiated technology advancements that are enabling more efficient deployment of power, more seamless connectivity and more intelligence that is driving innovation and enabling transformative products in the world’s most critical markets. This year’s sessions will highlight GF’s ultra-low power technology platforms, RF and mmWave connectivity solutions, and localized, low-power intelligent applications with secure embedded Non-Volatile Memory technology. Attendees will be able to gain insight into how GF is helping its customers shape our world, from the solutions they pioneer to enabling the cutting-edge products they deliver. GF’s President and CEO, Dr. Thomas Caulfield, will kick-off the event with a keynote address on how “Essential chips fuel the era of AI,” which emphasizes the transformative potential of these technologies and their significance in the rapidly evolving semiconductor landscape. In addition, Charlie Kawwas, Chief Operating Officer of Broadcom and John Forsyth, Chief Executive Officer of Cirrus Logic, along with other leaders from the fabless semiconductor and end-markets industries will take the stage, joined by experts from the expansive electronics ecosystem, including OEM, fabless, OSAT, EDA, and IP. Together, their insights, keynote addresses, technology roadmaps, and demonstrations will showcase GF’s collaborative development and its impact, highlighting innovations tailored for automotive, IoT, smart mobile, data centers and communications infrastructure markets. Held at the San Jose Marriott in San Jose, California, the two-day summit also introduces a new format. This year, representatives from GF’s Technology, Business, and Commercial teams are on hand to host small group meetings, facilitating deeper discussions and partnerships. About GTS: GF Technology Summit (GTS) 2023 is GF’s worldwide, annual series of technology-focused events. GTS brings together leaders from the commercial, business and research worlds to understand the latest technology challenges and opportunities, and partner to create the most innovative applications and solutions. About GlobalFoundries GlobalFoundries® (GF®) is one of the world’s leading semiconductor manufacturers. GF is redefining innovation and semiconductor manufacturing by developing and delivering feature-rich process technology solutions that provide leadership performance in pervasive high growth markets. GF offers a unique mix of design, development and fabrication services. With a talented and diverse workforce and an at-scale manufacturing footprint spanning the U.S., Europe and Asia, GF is a trusted technology source to its worldwide customers. For more information, visit www.gf.com. Forward-looking Information This news release may contain forward-looking statements, which involve risks and uncertainties. Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. GF undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, unless required by law. Media Contact: Erica McGill[email protected]518-795-5240
GlobalFoundries Reports Second Quarter 2023 Financial Results August 8, 2023 MALTA, New York, Aug. 08, 2023 (GLOBE NEWSWIRE) — GlobalFoundries Inc. (GF) (Nasdaq: GFS) today announced preliminary financial results for the second quarter ended June 30, 2023. Key Second Quarter Financial Highlights Revenue of $1,845 million. Gross margin of 28.8% and adjusted gross margin(1) of 29.6%. Operating margin of 14.9% and adjusted operating margin(1) of 18.3%. Net income of $237 million and adjusted net income(1) of $297 million. Adjusted EBITDA(1) of $668 million. Cash, cash equivalents and marketable securities of $3.3 billion. “In the second quarter, GF delivered financial results at the upper end of the guidance ranges we provided in our May earnings release” said Dr. Thomas Caulfield, president and CEO of GF. “Despite the cyclical headwinds impacting our industry and continued macroeconomic uncertainty, we delivered consistent financial performance and generated $146 million of free cash flow in the quarter, as GF’s global teams diligently managed costs, while driving differentiated solutions to meet our customers’ needs, across several critical growth markets.” Recent Business Highlights GF and Lockheed Martin announced a strategic collaboration to advance U.S. semiconductor manufacturing and innovation and to increase the security, reliability and resilience of domestic supply chains for national security systems. The U.S. Department of Defense accredited GF’s advanced manufacturing facility in Malta, New York, as a Category 1A Trusted Supplier with the ability to manufacture secure semiconductors for a range of critical aerospace and defense applications. (1) Adjusted gross profit, adjusted operating profit, adjusted net income, adjusted EBITDA and related margins are Non-IFRS measures. See “Unaudited Reconciliation of IFRS to Non-IFRS” for a detailed reconciliation of Non-IFRS measures to the most directly comparable IFRS measure. See “Financial Measures (Non-IFRS)” for a discussion of why we believe these Non-IFRS measures are useful. Unaudited Summary Quarterly Results (in millions USD, except per share amounts and wafer shipments)</u ></strong > Year-over-year Sequential Q2’23 Q1’23 Q2’22 Q2’23 vs Q2’22 Q2’23 vs Q1’23 Net revenue $1,845 $1,841 $1,993 $(148)(7)% $4 —% Gross profit 532 515 538 $(6)(1)% $17 3%Gross margin 28.8% 28.0% 27.0% +180bps +80bps Adjusted gross profit(1) $546 $525 $559 $(13)(2)% $21 4%Adjusted gross margin (1) 29.6% 28.5% 28.0% +160bps +110bps Operating profit $275 $290 $297 $(22)(7)% $(15)(5)%Operating margin 14.9% 15.8% 14.9% 0bps (90)bps Adjusted operating profit(1) $338 $326 $350 $(12)(3)% $12 4%Adjusted operating margin (1) 18.3% 17.7% 17.6% +70bps +60bps Net income $237 $254 $264 $(27)(10)% $(17)(7)%Net income margin 12.8% 13.8% 13.2% (40)bps (100)bps Adjusted net income(1)(2) $297 $290 $317 $(20)(6)% $7 2%Adjusted net income margin (1) 16.1% 15.8% 15.9% +20bps +30bps Diluted earnings per share (“EPS”) $0.43 $0.46 $0.48 $(0.05)(10)% $(0.03)(7)% Adjusted diluted earnings per share</strong >(1) $0.53 $0.52 $0.58 $(0.05)(9)% $0.01 2% Adjusted EBITDA(1)(3) $668 $655 $784 $(116)(15)% $13 2%Adjusted EBITDA margin (1) 36.2% 35.6% 39.3% (310)bps +60bps Cash from operations $546 $479 $609 $(63)(10)% $67 14% Wafer shipments (300mm equivalent) (in thousands) 573 511 630 (57)(9)% 62 12% (1) Adjusted gross profit, adjusted operating profit, adjusted net income, adjusted diluted earnings per share, adjusted EBITDA, and related margins are all Non-IFRS measures. See “Unaudited Reconciliation of IFRS to Non-IFRS” section for a detailed reconciliation of Non-IFRS measures to the most directly comparable IFRS measure. See “Financial Measures (Non-IFRS)” for a discussion of why we believe these Non-IFRS metrics are useful. (2) Beginning in Q4 2022, the Company revised its definition of adjusted net income to include an adjustment for restructuring charges and the associated tax impact. The change was made due to a restructuring undertaken in Q4 2022. The Company believes the revised definition provides management and investors with more useful information to evaluate the operations of our business. Adjusted net income is now defined as net income adjusted for share-based compensation expense, restructuring charges and the associated tax impact. (3) Beginning in Q3 2022, the Company revised its definition of adjusted EBITDA to include an adjustment for finance income. The change was made due to the Company making an investment during Q2 2022 of approximately $1.0 billion in marketable securities. The Company believes the revised definition provides management and investors more useful information to evaluate the operations of our business. Adjusted EBITDA is now defined as net income, adjusted for the impact of finance expense, finance income, income tax expense, depreciation, amortization, share-based compensation expense, divestiture gains and associated expenses, restructuring charges, labor optimization initiatives and litigation settlement. Summary of Third Quarter 2023 Outlook (unaudited in millions USD, except per share amounts)</u ></strong >(1) IFRS Share-based compensation Non-IFRS Adjusted(2)Net revenue$1,825 – $1,870 — —Gross Profit$485 – $527 $15- $17 $502 – $542Gross Margin(3)</sup > (mid-point) 27.4% 28.3%Operating Profit$227 – $287 $40 – $50 $277 – $327Operating Margin(3) (mid-point)13.9% 16.3%Net Income$204 – $262 $40 – $50 $254 – $302Net Income Margin(3)</sup > (mid-point) 12.6% 15.0%Diluted EPS$0.37 – $0.47 $0.46 – $0.54 (1) The guidance provided above contains forward-looking statements as defined in the U.S. Private Securities Litigation Act of 1995, and is subject to the safe harbors created therein. The guidance includes management’s beliefs and assumptions and is based on information currently available. GF has not provided a reconciliation of its Second Fiscal Quarter outlook for adjusted Non-IFRS EBITDA and related margin because estimates of all of the reconciling items cannot be provided without unreasonable efforts. Certain factors that are materially significant to GF’s ability to estimate these items are out of its control and/or cannot be reasonably predicted. (2) Adjusted gross profit, adjusted operating profit, adjusted net income, and adjusted diluted EPS are non-IFRS metrics and, for purposes of the Outlook only, are defined as gross profit, operating profit, net income, and EPS before share-based compensation expense, respectively. (3) Adjusted margins are non-IFRS metrics and for purposes of the Outlook only, are defined as adjusted gross profit, adjusted operating profit and adjusted net income, each divided by net revenue (using the definitions of adjusted gross profit, adjusted operating profit, and adjusted net income, in footnote (2) above, as appropriate). Unaudited Consolidated Statements of Operations Three Months Ended(in millions USD except for per share amounts) June 30, 2023 June 30, 2022 Net revenue $1,845 $1,993 Cost of revenue 1,313 1,455 Gross profit $532 $538 Operating expenses: Research and development 106 120 Sales, marketing, general and administrative 132 121 Restructuring charges 19 — Total operating expenses $257 $241 Operating profit $275 $297 Finance income (expense), net — (19)Other income (expense) (10) 16 Income tax expense (28) (30)Net income $237 $264 Attributable to: Shareholders of GlobalFoundries 240 264 Non-controlling interest (3) — Earnings per share : Basic $0.43 $0.49 Diluted $0.43 $0.48 Shares used in earnings per share calculation: Basic 552 535 Diluted 556 550 Unaudited Consolidated Statements of Financial Position</strong > (in millions USD) June 30, 2023 December 31, 2022 Assets: Cash and cash equivalents $1,832 $2,352 Receivables, prepayments and other 1,232 1,487 Marketable securities 955 622 Inventories 1,504 1,339 Current assets $5,523 $5,800 Deferred tax assets $245 $292 Property, plant, and equipment, net 10,789 10,596 Marketable securities 516 372 Other assets 742 781 Non-current assets $12,292 $12,041 Total assets $17,815 $17,841 Liabilities and equity: Current portion of long-term debt $221 $223 Other current liabilities 2,569 3,136 Current liabilities $2,790 $3,359 Non-current portion of long-term debt $2,208 $2,288 Other liabilities 2,243 2,234 Non-current liabilities $4,451 $4,522 Shareholders’ equity: Common stock/additional paid-in capital $23,979 $23,842 Accumulated deficit (13,527) (14,021)Accumulated other comprehensive income 77 92 Non-controlling interest 45 47 Total liabilities and equity $17,815 $17,841 Unaudited Consolidated Statements of Cash Flows Three Months Ended(in millions USD) June 30, 2023 June 30, 2022 Cash flows from operating activities: Net income$237 $264 Depreciation and amortization 340 411 Finance expense, net and other(1) (14) (10)Deferred income taxes 24 22 Other non-cash operating activities 50 23 Net change in working capital (91) (101)Net cash provided by operating activities$546 $609 Cash flows from investing activities: Purchases of property, plant, equipment, and intangible assets$(400) $(812)Other investing activities (488) (792)Net cash used in investing activities$(888) $(1,604) Cash flows from financing activities: Proceeds from issuance of equity instruments and other $9 $— Proceeds (repayment) of debt, net (87) 124 Other financing activities (4) 83 Net cash (used in) provided by financing activities $(82) $207 Effect of exchange rate changes — (2)Net change in cash and cash equivalents$(424) $(790)Cash and cash equivalents at the beginning of the period 2,256 3,264 Cash and cash equivalents at the end of the period$1,832 $2,474 (1) Finance expense, net and other has been adjusted to include interest and taxes paid that were previously included in “Other non-cash operating activities.” Prior period amounts have been adjusted accordingly. Unaudited Reconciliation of IFRS to Non-IFRS Three Months Ended(in millions USD) June 30, 2023 March 31, 2023 June 30, 2022 Gross profit $532 $515 $538 Gross profit margin 28.8% 28.0% 27.0%Share-based compensation $14 $10 $21 Adjusted gross profit (1) $546 $525 $559 Adjusted gross margin(1) 29.6% 28.5% 28.0% Selling, general and administrative expense $132 $111 $121 Share-based compensation $24 $17 $24 Adjusted selling, general and administrative expense</strong >(1) $108 $94 $97 Research and development expense $106 $109 $120 Share-based compensation $6 $4 $8 Adjusted research and development expense</strong >(1) $100 $105 $112 Operating profit $275 $290 $297 Operating profit margin 14.9% 15.8% 14.9%Share-based compensation $44 $31 $53 Restructuring charges $19 $5 — Adjusted operating profit(1) $338 $326 $350 Adjusted operating profit margin(1) 18.3% 17.7% 17.6% Net income $237 $254 $264 Net income margin 12.8% 13.8% 13.2%Share-based compensation $44 $31 $53 Restructuring charges $19 $5 — Income tax effect(2) $(3) $— $— Adjusted net income(1)</sup >(3) $297 $290 $317 Adjusted net income margin(1) 16.1% 15.8% 15.9% Diluted earnings per share $0.43 $0.46 $0.48 Share-based compensation $0.08 $0.05 $0.10 Restructuring charges $0.03 $0.01 — Income tax effect $(0.01) $— — Adjusted diluted earnings per share</strong >(1) $0.53 $0.52 $0.58 Net cash provided by (used in) operating activities $546 Less: Purchase of property, plant and equipment and intangible assets $400 Free cash flow</strong >(1) $146 (1) Adjusted gross profit, adjusted selling, general and administrative expense, adjusted research and development expense, adjusted operating profit, adjusted net income, adjusted diluted earnings per share, free cash flow and any related margins are all Non-IFRS measures. See “Financial Measures (Non-IFRS)” for a discussion of why we believe these Non-IFRS measures are useful. (2) Relates to restructuring charges. (3) Reflects change to adjusted net income definition discussed in more detail elsewhere in this release. Unaudited Reconciliation of Net Income to Adjusted EBITDA</u ></strong > Three Months Ended(in millions USD) June 30, 2023 March 31, 2023 June 30, 2022 Net income for the period $237 $254 $264 Depreciation and amortization 340 343 411 Finance expense 34 31 26 Finance income (34) (32) NA Income tax expense 28 23 30 Share-based compensation 44 31 53 Restructuring charges 19 5 — Adjusted EBITDA(1)(2) $668 $655 $784 Adjusted EBITDA margin(2) 36.2% 35.6% 39.3% (1) Reflects change to adjusted EBITDA definition discussed in more detail elsewhere in this release. (2) Adjusted EBITDA and related margin are Non-IFRS measures. See “Unaudited Reconciliation of IFRS to Non-IFRS” for a detailed reconciliation of Non-IFRS measures to the most directly comparable IFRS measure. See “Financial Measures (Non-IFRS)” for a discussion of why we believe these Non-IFRS measures are useful. Financial Measures (Non-IFRS) In addition to the financial information presented in accordance with IFRS, this press release includes the following Non-IFRS metrics: adjusted gross profit, adjusted selling, general and administrative expense, adjusted research and development expense, adjusted operating profit, adjusted net income, adjusted diluted earnings per share, adjusted EBITDA, free cash flow and any related margins. We define adjusted gross profit as gross profit adjusted for share-based compensation expense. We define adjusted selling, general and administrative expense as selling, general and administrative expense adjusted for share-based compensation expense. We define adjusted research and development expense as research and development expense adjusted for share-based compensation expense. We define adjusted operating profit as profit from operations adjusted for share-based compensation expense and restructuring charges. We define adjusted net income as net income adjusted for share-based compensation expense, restructuring charges and the associated tax impact. We define adjusted diluted EPS as adjusted net income divided by the dilutive shares. We define free cash flow as cash flow provided by (used in) operating activities less purchases of property, plant and equipment and intangible assets. We define adjusted EBITDA as net income, adjusted for the impact of finance expense, finance income, income tax expense, depreciation, amortization, share-based compensation expense, divestiture gains and associated expenses, restructuring charges, labor optimization initiatives and litigation settlements. We believe that in addition to our results determined in accordance with IFRS, these Non-IFRS measures provide useful information to both management and investors in measuring our financial performance and highlight trends in our business that may not otherwise be apparent when relying solely on IFRS measures. These Non-IFRS financial measures provide supplemental information regarding our operating performance that excludes certain gains, losses and non-cash charges that occur relatively infrequently and/or that we consider to be unrelated to our core operations. Management believes that free cash flow as a Non-IFRS measure is helpful to investors as it provides insights into the nature and amount of cash the Company generates in the period. For further information regarding these Non-IFRS measures, please refer to “Unaudited Reconciliation of IFRS to Non-IFRS” table above. Non-IFRS financial information is presented for supplemental informational purposes only and should not be considered in isolation or as a substitute for financial information presented in accordance with IFRS. Our presentation of Non-IFRS measures should not be construed as an inference that our future results will be unaffected by unusual or nonrecurring items. Other companies in our industry may calculate these measures differently, which may limit their usefulness as a comparative measure. Conference Call and Webcast Information GF will host a conference call with the financial community on Tuesday, August 8, 2023 at 8:30 a.m. U.S. Eastern Time (ET) to review the Second Quarter 2023 results in detail. Interested parties may join the scheduled conference call by registering at https://register.vevent.com/register/BI977824f4c1e540208394c14fc51ef4e0. The call will be webcast and can be accessed from the GF Investor Relations website https://investors.gf.com. A replay of the call will be available on the GF Investor Relations website within 24 hours of the actual call. About GlobalFoundries GlobalFoundries® (GF®) is one of the world’s leading semiconductor manufacturers. GF is redefining innovation and semiconductor manufacturing by developing and delivering feature-rich process technology solutions that provide leadership performance in pervasive high growth markets. GF offers a unique mix of design, development and fabrication services. With a talented and diverse workforce and an at-scale manufacturing footprint spanning the U.S., Europe and Asia, GF is a trusted technology source to its worldwide customers. For more information, visit www.gf.com. Forward-looking Statements This press release includes “forward-looking statements” that reflect our current expectations and views of future events. These forward-looking statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995 and include but are not limited to, statements regarding our financial outlook, future guidance, product development, business strategy and plans, and market trends, opportunities and positioning. These statements are based on current expectations, assumptions, estimates, forecasts, projections and limited information available at the time they are made. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall,” “outlook,” “on track,” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are subject to a broad variety of risks and uncertainties, both known and unknown. Any inaccuracy in our assumptions and estimates could affect the realization of the expectations or forecasts in these forward-looking statements. For example, our business could be impacted by geopolitical conditions such as the ongoing political and trade tensions with China and the Russia/Ukraine conflict; the market for our products may develop or recover more slowly than expected or than it has in the past; we may fail to achieve the full benefits of our current restructuring plan; our operating results may fluctuate more than expected; there may be significant fluctuations in our results of operations and cash flows related to our revenue recognition or otherwise; a network or data security incident that allows unauthorized access to our network or data or our customers’ data could damage our reputation; we could experience interruptions or performance problems associated with our technology, including a service outage; and global economic conditions could deteriorate, including due to increasing interest rates, rising inflation and any potential recession. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make. Moreover, we operate in a competitive and rapidly changing market, and new risks may emerge from time to time. You should not rely upon forward-looking statements as predictions of future events. These statements are based on our historical performance and on our current plans, estimates and projections in light of information currently available to us, and therefore you should not place undue reliance on them. Although we believe that the expectations reflected in our statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances described in the forward-looking statements will be achieved or occur. Moreover, neither we, nor any other person, assumes responsibility for the accuracy and completeness of these statements. Recipients are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date such statements are made and should not be construed as statements of fact. Except to the extent required by federal securities laws, we undertake no obligation to update any information or any forward-looking statements as a result of new information, subsequent events, or any other circumstances after the date hereof, or to reflect the occurrence of unanticipated events. For a discussion of potential risks and uncertainties, please refer to the risk factors and cautionary statements in our 2022 Annual Report on Form 20-F, current reports on Form 6-K and other reports filed with the Securities and Exchange Commission. Copies of our SEC filings are available on our Investor Relations website, investors.gf.com, or from the SEC website, www.sec.gov. For further information, please contact:</strong >Investor Relations[email protected]
Cadence, GlobalFoundries, Hoerzentrum Oldenburg and Leibniz University Hannover Collaborate to Advance Hearing Aid Technology July 19, 2023
Ensuring the Supply of Trusted Chips for Critical Needs July 13, 2023 by Ezra HallSenior Director of Aerospace and Defense business, GlobalFoundries GlobalFoundries (GF) recently announced its facility in Malta, New York, was accredited by the U.S. Department of Defense as a Trusted Foundry with the ability to manufacture secure semiconductors for a range of critical aerospace and defense applications. Why is this important? Read below to learn more. Technology use is pervasive in our daily lives, not just on a personal level but also in the critical systems and infrastructure that we may take for granted: power, water, transportation, healthcare, telecom, banking, defense and more. All of these end-uses depend upon semiconductor technology to function. And while advances at single-digit nanometer nodes grab most of the headlines, the reality is that most of these applications are made – and will continue to be made – using 12nm and larger nodes to deliver essential chips that serve 70% of the addressable market. Thanks to our commitment to technology innovation and differentiation, this is exactly the space GlobalFoundries (GF) specializes in, which addresses the vast majority of needs for chips used in defense and critical infrastructure applications. It is vital not only to protect availability of supply for these chips, but also to ensure they are designed, manufactured and tested in a trusted and secure manner to avoid the potentially nefarious introduction of security risks which could negatively impact the operation of critical systems. Chips not following this approach risk being compromised and subsequently – remotely or otherwise triggered to shut down a system or perform other damaging actions by those with ill intents. We must prevent this from happening, to protect both national and economic security. Thus, the electronics industry needs to make security of design, manufacturing and testing a requirement valued every bit as much as the traditional size, weight, power and cost (SWaPc) metrics. We must include security in our program requirements, budget for it and require our supply chains to deliver on the full “CIA” triad framework. That model stresses Confidentiality (protecting from disclosure), Integrity (include only what was intended, nothing else) and Availability (ensuring access to what, and when it’s needed). A Trusted Partner With a Wide Range of Differentiated Technologies No one understands chip security better than GF, a longstanding partner to the U.S. Department of Defense (DoD), and the most advanced and the only at-scale U.S. Trusted Foundry. Trusted Foundry is a DoD designation certifying that GF meets stringent U.S. government requirements for all aspects of designing and producing classified, secure semiconductor components, both physical and digital. Trusted Foundry accreditation status enables the U.S. government to count on us as a secure source of supply and to protect all of the government’s intellectual property and designs. Trusted Foundry is the security solution today that best addresses all three factors in the CIA triad to their fullest potential. Some advocate for the softening of Trusted Foundry requirements under the belief that it will cut costs. I see it a different way: using less-secure manufactured chips in sensitive applications will only lead to significant issues down the road, be it supply disruption due to geological, weather, or future pandemic related issues, or increasingly, the realization of geopolitical threats. Ultimately, this is a price we cannot afford. We should not let that happen. GF’s differentiated technologies offer features such as the ability to operate with extremely low-power draw, and/or at low- or high-temperature and other extreme environments. These features include: class-leading millimeter-wave (mmWave) communications capabilities; communicating with photons instead of electrons for extreme performance at lowest possible power, delivering advanced power-management functionality; incorporating non-volatile memory; and with the game changing ability to integrate combinations of high-performance signal processing, power, RF communications, and memory onto a system-on-a-chip (SoC). Instead of large, heavy power-hungry racks comprised of many boards containing many chips, these systems can be designed into one or several chips to not only perform the same functionality, but extend capabilities, range, reduce size, weight and power. That’s a game-changer, especially for the increasingly smaller and more pervasive defense applications of the future. Scale is Needed to Ensure Supply Semiconductor manufacturing is a capital-intensive industry with significant technology development, production, and ecosystem costs. For supply resiliency, manufacturing must take place at scale so that a manufacturer can develop the technologies and achieve the yields and quality required by customers and realize a sustainable business case to remain competitive. Take GF as an example. Headquartered in the U.S., we have a global footprint with manufacturing facilities in New York, Vermont, Germany and Singapore. Because we operate on three continents, we have three different sets of supply chains which makes us an extremely resilient supplier. In fact, throughout the pandemic, GF didn’t miss a single wafer of output. Moreover, our teams have woven extensive supply chain mapping and chip traceability into GF’s operations. This guaranteed assurance is already transforming automotive supply chains. To ensure and to fulfill the supply of secure chips needed for aerospace, defense, critical infrastructure, and other applications critical to economic and national security, and to fulfil the vision of the U.S. CHIPS and Science Act, we must increase the demand for domestically manufactured semiconductors. We have the tools we need to accomplish this, from acquisition policy to buying behaviors and market preferences, and we need to use them. The Way Forward: Dual-Use Dual-use is the concept of technologies that can be utilized both for defense and non-defense applications, a term that can be applied in a number of ways. As we know, scale is required for affordable high-yield high quality technologies, which dictates that higher volume non-defense related demand must be present. While at the same time, differentiation for defense applications is required to achieve technological superiority for defense applications. As such, dual-use research and development incentives must be at the center of our national technology strategy. The costly development of semiconductor technologies will only be justifiable if a foundry can leverage that technology across significant volume that defense applications realistically cannot achieve alone. Creating a platform for research and development that is secure from the start not only protects commercial products, but affords us the opportunity to extend those protections for more sensitive applications. As an example, think of a helicopter and an automobile, both of which have radar, cameras, control systems and other systems that function similarly. Chips for these applications can be produced in dual-use technologies to survive the proverbial “valley of death,” and at the same time, the nation can also save time and money! At GF, we have a team of experts who are building unparalleled knowledge and insights into end-market requirements, because our differentiated technologies enable us to support these requirements in ways that offer unique benefits. GF’s end markets are automotive; communications infrastructure and data center; home/industrial IoT (Internet of Things); smart mobile devices; and aerospace, defense, and critical infrastructure. We have structured GF’s aerospace, defense and critical infrastructure activities to create synergies in technology products that GF produces for all end markets. In this way, we can offer specialized aerospace, defense and critical infrastructure technology solutions built upon robust high volume commercial foundational demand. In effect, we are riding the coattails of cost-effective commercial volume production to implement specific technology features in a secure fashion. In so doing, we are supporting a safer, more secure world. Ezra Hall, based in Burlington, Vermont, is responsible for GF’s aerospace and defense business, which offers novel and strategic solutions in support of national security and critical infrastructure needs. A 39-year industry veteran, Hall is recognized for his expertise in microelectronics supply chain security. He is a GF Master Inventor with 21 U.S. patents who co-founded and co-chairs the U.S. National Defense Industry Association’s Electronics Division.
GlobalFoundries Announces CFO Update July 11, 2023 MALTA, N.Y., July 11, 2023 – GlobalFoundries (NASDAQ: GFS) today announced that Tim Stone and GF have agreed that he will not assume his duties as CFO for GF and will depart the company effective July 11th. David Reeder will remain as GF’s CFO through the end of the year, to support the selection of a new CFO and ensure an orderly transition to new financial leadership. The company’s guidance for its fiscal 2023 second quarter, provided on May 9th, remains unchanged. About GF GlobalFoundries (GF) is one of the world’s leading semiconductor manufacturers. GF is redefining innovation and semiconductor manufacturing by developing and delivering feature-rich process technology solutions that provide leadership performance in pervasive high growth markets. GF offers a unique mix of design, development, and fabrication services. With a talented and diverse workforce and an at-scale manufacturing footprint spanning the U.S., Europe and Asia, GF is a trusted technology source to its worldwide customers. For more information, visit www.gf.com. ©GlobalFoundries Inc., GF, GlobalFoundries, the GF logos and other GF marks are trademarks of GlobalFoundries Inc. Or its subsidiaries. All other trademarks are the property of their respective owners. Forward-looking Information This news release may contain forward-looking statements, which involve risks and uncertainties. Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. GF undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, unless required by law. Media: Laurie KellyGlobalFoundries+1 518 265 4580[email protected] Investor Relations: [email protected]
