March 1, 2024 ESSEX JUNCTION, VT, March 1, 2024 – GlobalFoundries (Nasdaq: GFS) (GF) CEO Dr. Thomas Caulfield was joined today by Vermont Governor Phill Scott, Senator Peter Welch, U.S. Representative Becca Balint, former Senator Patrick Leahy and other GF and community leaders to celebrate the nearly $130 million in planned direct funding as part of the U.S. CHIPS and Science Act and Vermont state funding that will support the modernization of GF’s longest continuously operated fab and the nation’s first and largest Trusted 200mm facility in Essex Junction. Last week, GF was proud to announce the U.S. Department of Commerce’s $1.5 billion in planned direct funding for GF, with $125 million of that funding earmarked for modernizing and building out the capacity of GF’s Vermont facility. Governor Scott and the State of Vermont have announced an additional $4.5 million in planned funding to support creating the first U.S. facility capable of high-volume manufacturing of next-generation gallium nitride (GaN) semiconductors for use in electric vehicles, power grids, data centers, 5G and 6G smartphones and other critical technologies. Modernization efforts will include the adoption of new industry-leading sustainability practices that aim to reduce greenhouse gas emissions and improve wastewater treatment at the facility. These improvements are poised not only to meet but surpass state and federal regulatory requirements, making the fab one of the greenest of its kind. “GF was proud to welcome Governor Scott, Senator Welch, former Senator Leahy and Congresswoman Balint to our Vermont site today,” said Dr. Caulfield. “Our facility in Vermont has been manufacturing and innovating in the semiconductor industry for the last six decades and these proposed investments to modernize our facility will enable GF to keep delivering cutting-edge solutions for our customers and partners, in an environmentally friendly way, well into the future. Today, on Employee Appreciation Day, we celebrate the achievements and the community spirit of our GF team in Vermont.” “This investment is incredibly impactful, not just for the state and region, but for our national and economic security,” said Governor Scott. “It’s also a significant recognition of the ingenuity, hard work and dedication of generations of Vermont employees who have made GlobalFoundries and its predecessors in Essex Junction so successful and impactful. This investment would not have been possible without their excellence. I’m excited to see all that comes of it in the years to come.” To attract and cultivate a pipeline of semiconductor talent that will be needed in Vermont, GF is creating and investing in numerous initiatives including the company’s recently announced student loan repayment program to help current employees and new recruits pay down student loan debt. GF is also partnering with a broad range of universities and community colleges nationwide, such as the University of Vermont and Vermont State University, to help build a diverse workforce and semiconductor talent pipeline. As part of receiving CHIPS and Science Act funding, GF will continue to invest in and develop new workforce development efforts including curriculum development, internship and apprenticeship programs, K-12 STEM outreach as well as additional education and training programs. All of GF’s design and construction plans for its modernization in Vermont will reflect GF’s ongoing commitment to sustainable operations and comply with the company’s sustainability goals. Government officials and academia in Vermont celebrate the news: “There is no doubt that there is a global shortage in microchips and semiconductors which is making it harder for manufacturers to produce the cars, cellphones, and electronic equipment that we need,” said Sen. Bernie Sanders. “This federal investment will bring valuable support to help this industry succeed in Vermont by supporting innovations in development, manufacturing, and production. It will also create good-paying jobs for hundreds of Vermonters, and bring in apprenticeship programs to teach the next generation. I applaud Senator Leahy, Governor Scott, my fellow Congressional Delegation members, GlobalFoundries, and the Biden-Harris administration for all their work to bring this funding to Vermont. I look forward to seeing all the good it will do for Vermont workers and our communities.” “Vermont is powered by Gallium Nitride technologies, used in everything from our phones to power grids to electric vehicles. The $125 million federal award made possible by the bipartisan CHIPS and Science Act represents a generational investment in Vermont jobs and U.S.-made chips,” said Senator Welch. “GlobalFoundries and the Fab 9 team have made Vermont a leader in semiconductor innovation and development, and they’ve shown the nation and the world that the Vermont Way works. Their commitment to sustainability and use of carbon-free energy practices are leading the way for other manufacturers. The ripple effect of this exciting development has already begun to spark innovation within the greater community and will be an economic driver for years to come.” “The historic CHIPS and Science Act unleashed the full potential of domestic semiconductor manufacturing, and Vermont will lead the nation in chips production,” said Rep. Becca Balint. “Thanks to President Biden’s leadership, this transformative investment will lead to the modernization of GlobalFoundries’ longest continuously operated fab, right here in Vermont. Our state will be home to the first U.S. facility capable of high-volume manufacturing of next-generation GaN semiconductors. Vermonters continue to lead our country’s innovation economy, and I am thrilled to celebrate this monumental investment from the Biden administration today.” “The first and largest 200mm semiconductor manufacturing facility of its kind in the U.S., GF’s Vermont fab is a cornerstone of the state’s economy and a key partner for the University of Vermont’s work as a national research university. Through collaborative programs with UVM and other institutions in Vermont, it is a place where so many young people in our region find their future. CHIPS funding will help ensure the commercial viability of this site for years to come and enable GF and UVM to build upon our recent EDA Tech Hub designation to create internships, apprenticeships, workforce development programs, and advanced research initiatives in the Green Mountain State. We applaud this federal investment in GF and the entire Vermont community,” said Kirk Dombrowski, Vice President for Research and Economic Development at UVM. GF’s facility in Essex Junction, Vermont, near Burlington, was among the first major semiconductor manufacturing sites in the United States. Today, around 1,800 GF employees work at the site. Built on GF’s differentiated technologies, these GF-made chips are used in smartphones, automobiles, and communications infrastructure applications around the world. The facility is a DMEA accredited Trusted Foundry and manufactures secure chips in partnership with the U.S. Department of Defense, for use in some of the nation’s most sensitive aerospace and defense systems. 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. ©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 press release includes “forward-looking statements” made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements 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. 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For example, our business could be impacted by geopolitical conditions such as the ongoing political and trade tensions with China and the wars in Ukraine and Israel; the market for our products may develop or recover more slowly than expected or than it has in the past; we may fail to achieve the full benefits of our restructuring plan; our operating results may fluctuate more than expected; there may be significant fluctuations in our results of operations and cash flows related to our revenue recognition or otherwise; a network or data security incident that allows unauthorized access to our network or data or our customers’ data could result in a system disruption, loss of data or damage our reputation; we could experience interruptions or performance problems associated with our technology, including a service outage; 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. You should not rely upon forward-looking statements as predictions of future events. 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. Except to the extent required by federal securities laws, we undertake no obligation to update any information or any forward-looking statements. Investors are urged to review in detail the risks and uncertainties discussed 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. Media Contacts: For VT:Gina DeRossi[email protected] For NY:Erica McGill[email protected]
