Georgia Tech and GlobalFoundries to Collaborate on Joint Semiconductor Research and Workforce Development March 31, 2023 New partnership to include educational opportunities for Georgia Tech students and faculty, STEM outreach, and joint R&D programs on GF technology ATLANTA and MALTA, N. Y., March 31, 2023 – Georgia Institute of Technology, one of the top public research universities in the U.S., and GlobalFoundries (Nasdaq: GFS) (GF), one of the world’s leading semiconductor manufacturers, today announced a new partnership to expand collaboration on semiconductor research, education, talent, and workforce development. By jointly creating and implementing new educational, engagement, and research opportunities for students and faculty, Georgia Tech and GF are advancing semiconductor innovation, while helping prepare and train a new generation of talented young people for careers in the semiconductor industry. The new partnership includes collaborating on proposals for support from the U.S. government through the CHIPS and Science Act funding. “Semiconductor research is a top priority for Georgia Tech and the nation, as we develop innovative solutions that improve manufacturing and support our national and state economies,” said Chaouki Abdallah, executive vice president for Research at Georgia Tech. “Deepening our partnership with GlobalFoundries allows us to leverage our complementary technology and talent resources to benefit this vital industry, and to improve the human condition.” “At GF, we recognize the tremendous potential of semiconductors to drive innovation, and ultimately enable the inventions and technologies that create meaningful societal change,” said Gregg Bartlett, chief technology officer of GF. “By partnering with top-tier universities like Georgia Tech on research and development, we can tap into a deep pool of academic talent and technical expertise and bring new ideas and insights to the forefront of our work. Through this collaboration, we aim to push the boundaries of what is possible in feature-rich semiconductor technology, as well as inspire students to pursue a career in the exciting field of chip design and manufacturing.” The strategic agreement outlines a framework of collaboration between GF and Georgia Tech to expand research and development opportunities on GF semiconductor technology, curriculum development, training programs, internships, and joint faculty/engineering exchanges. Additionally, the agreement calls for Georgia Tech and GF to partner on outreach to inspire interest in semiconductors and highlight career opportunities in microelectronics. GF and Georgia Tech will also explore programs to enhance diversity and inclusion within the semiconductor workforce. For GF, the partnership with Georgia Tech will be overseen by GF Labs, which leads the company’s research and development efforts to advance GF’s differentiated technology portfolio in partnership with leading academic, government, and industry collaborators. About Georgia Tech The Georgia Institute of Technology, or Georgia Tech, is one of the top public research universities in the U.S., developing leaders who advance technology and improve the human condition. The Institute offers business, computing, design, engineering, liberal arts, and sciences degrees. Its more than 46,000 students, representing 50 states and more than 150 countries, study at the main campus in Atlanta, at campuses in France and China, and through distance and online learning. As a leading technological university, Georgia Tech is an engine of economic development for Georgia, the Southeast, and the nation, conducting more than $1 billion in research annually for government, industry, and society. About GF GlobalFoundries (GF) is one of the world’s leading semiconductor manufacturers. GF is redefining innovation and semiconductor manufacturing by developing and delivering feature-rich process technology solutions that provide leadership performance in pervasive high growth markets. GF offers a unique mix of design, development and fabrication services. With a talented and diverse workforce and an at-scale manufacturing footprint spanning the U.S., Europe and Asia, GF is a trusted technology source to its worldwide customers. For more information, visit www.gf.com. ©GlobalFoundries Inc., GF, GlobalFoundries, the GF logos and other GF marks are trademarks of GlobalFoundries Inc. Or its subsidiaries. All other trademarks are the property of their respective owners. Forward-looking Information This news release may contain forward-looking statements, which involve risks and uncertainties. Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. GF undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, unless require by law. Media Contacts: Georgia Tech Georgia Robert Parmelee[email protected] GlobalFoundries Michael Mullaney[email protected]
GF Celebrates International Women’s Day Around the Globe March 30, 2023 Emma Cheer, Director of Diversity, Equity, Inclusion and Belonging International Women’s Day (IWD) is celebrated annually on March 8. This day celebrates the social, economic, cultural and political achievements of women. It is also an opportunity to showcase commitment to equity, launch new initiatives, celebrate women’s achievements, raise awareness, and highlight gender parity gains. This year’s theme is #EmbraceEquity. GF was proud to celebrate International Women’s Day and recognize women across the company for their outstanding work. GlobalWomen, our largest employee resource group has chapters around the globe, and every year each chapter recognizes and awards women and allies who exemplify our GF Values: Create, Embrace, Partner, and Deliver. This year, there were 10 events and over 1,000 collective attendees. Catch up on the great International Women’s Day events below! Our representation of women continues to grow. GF has 25% of women in our global workforce and has made tremendous strides in increasing women in executive leadership by 14% over the last 3 years. Also, our percentage of women in engineering roles has grown to over 23%. GF strives to create equitable workplaces around the globe and at every level of the organization. Learn more about our commitment to #EmbraceEquity. Global IWD Celebrations & Award Winners India Congratulations to GF India’s winners including Charu Gupta, Namitha, Nimea Prasad, Monisha K. Nandeeshgowda, Mythri Nagireddy, Priya Narayanan, Vaishnavi Desai, Srujana Pillay, Shivani Agarwal, Shankari Kesavan and Renuka Munoli! The GF India event was marked by various activities that highlighted the importance of gender equality and women empowerment in the workplace. Speakers included Jitendra Chaddah, VP and India Country Manager who is also the GlobalWomen Site Executive Sponsor, and Swapneel Singh, Director HR Business Operations, who shared an inspiring talk about her leadership journey. She emphasized the importance of women challenging themselves to achieve their goals. She encouraged them to move forward with confidence, and not let any obstacles hinder their progress. Singapore A big congratulations to all winners of our 2023 Women’s Recognition Award for their outstanding support and efforts to create an equitable workplace in Singapore! GF Singapore’s winners included Alvina Seet, Ann Ann Boo, Annie Teo, Arky Lu, Bee Ling Yap, Betty Xiao, Catherine Leong, Doreen Lim, Eileen Tay, Emelie Manalo, Huey Meei Chia, Hui Ling Toh, Hwee Jun Lee, Jascelyn Thong, Jing Yan Huang, Joanne Lim, Junnie Ong, Kay Khine Pwint, Kim Hong Teo and Lawanya S. Santa Clara Congratulations to this year’s awardees in Santa Clara: Huong Duong-Tran, Scarlett Fisher, and Lynn Wang. At the Santa Clara, California, event, attendees learned more about International Women’s Day from the GlobalWomen West Executive Sponsor Sarah McGowan, heard from our leaders on the importance of equity, and celebrated those who go above and beyond with the GlobalWomen Recognition Awards. Dresden Congratulations to the 15 winners of this year’s GlobalWomen Awards in Dresden! The winners included: Anita Berthold, Carola Drescher, Carolin Siegert, Cornelia Loewe, Daniela Tschernoster, Diana Hamann, Gabriele Grimm, Katia Strangis, Kerstin Sachse, Manja Schöne, Marta Horecha, Ning-Hui Lu, Saskia Haberkorn, Sylvia Mitteldorf and Ute Nehring. These female colleagues were honored as role models that represent our GF company values Create, Partner, Deliver & Embrace and achieve outstanding results beyond their role at GF. Austin Attendees at our Austin site learned more about International Women’s Day from the GlobalWomen Austin Core Team, heard from our leaders on the importance of equity, and celebrated those who go above and beyond with the GlobalWomen Recognition Awards. Congratulations to this year’s awardees in Austin: Brenda Lanza, Marlies Amberger, and Adeline Feybesse! Sofia IWD recognitions in Sofia, Bulgaria, opened with our GlobalWomen Site Sponsor Dobromir Gaydazhiev sharing his insights about #EmbraceEquity theme, as well as a panel discussion on “What Equity Means to You?” Congratulations to our GlobalWomen Recognition Award winners: Desislava Popovska, Maria Stanoeva, Nikol Borisova, Samira Dermendzhieva and Simona Dimitrova! Malta Our Malta, New York, site also held an in-person celebration for IWD. Presenters included: Peter Benyon, SVP & GM Fab 8; Pradip Singh, SVP & GM Global Manufacturing Operations Excellence; Hui Peng Koh, VP Fab 8 Manufacturing Engineering and Malta GlobalWomen Executive Sponsor; as well as Tricia Burroughs, Malta GlobalWomen Co-Lead; and Serena Sapienza, Malta GlobalWomen Steering Committee Member. Congratulations to our Malta IWD 2023 awardees: Kassidy Berger, Hayley Brown, Esther Chen, Grace Conway, Natalie Fournier, Laurie Greisler, Sarah Grunow, Jessica Kim, Selina Mala, Jwala Parajuli, Chandana Ravella, Nicole Rocco, Emily Sample, Julianne Scarupa, Mary Totaro and Lisa Ziter. Congratulations as well to Pradip Singh, who received the Ally Award. China In China/APAC, IWD Recognition Awards went to Alice Bian, Cheng Ziaohua, Christine Huang, Teresa Lee and Kanae Shibata. Burlington Celebrations in Burlington, Vermont, drew over 115 participants both in-person and virtually. Speakers at the event included VP & Fab 9 General Manager Ken McAvey, Kylee Coffey, Sr Director Integration Engineering & Burlington GlobalWomen Executive Sponsor, and Emma Cheer, Director of Diversity, Equity, Inclusion and Belonging. The 2023 Burlington IWD Award Winners are: Christina Donovan, Leslie Arnold, Cathy Christiansen, Kendra Goudreau, Kim Knight, Mary Ann Ebersole, Teresa Bazan, Colleen Whemple, Kelly Jackson, Kelly Cross, Laurie Paparo, Candice Callahan, Priya Balachandran and Emily Bates. The Allyship Award was presented to Chris Bowers. Remote@GF Our newest employee resource group, Remote@GF, for employees who work from home or another remote location, kicked off its first event of 2023 by celebrating IWD. Remote@GF recognized five women who have had a positive impact on our organization, which included: Maria Disla, Joan Keil, Abigail Kniffin, Srilata Raman and Anubha Tewari. Congratulations to all of the winners! About GlobalWomen GlobalWomen (GW) is an alliance of women and allies whose mission is to create a sustainable framework for the professional development of women at GlobalFoundries, working in partnership with our allies to drive initiatives that have a positive impact on our people, culture and business. GW has 9 regional chapters and is open to all employees regardless of gender to join.
GlobalFoundries Mitarbeitende spenden mehr als 40.000 Euro für Ukrainehilfe an arche noVa e.V. March 21, 2023 Unternehmen verdreifacht Spenden durch internes Spendenprogramm GlobalGives Dresden, 21. März 2023. Rund ein Jahr nach dem Beginn des russischen Angriffs auf die Ukraine ziehen der Dresdner Chiphersteller GlobalFoundries (GF) und die Dresdner Hilfsorganisation arche noVa e.V. Bilanz zu gemeinsamen Spendenprojekten. Seit März 2022 haben das Unternehmen und seine Mitarbeitenden mehr als 40.000 Euro an arche noVa zugunsten humanitärer Projekte in der Ukraine gespendet. Neben einer Direktspende von 5.000 Euro verdreifachte GF die Spenden seiner Mitarbeitenden über das firmeninterne Spendenprogramm GlobalGives. “Unsere Kolleginnen und Kollegen hatten vom ersten Tag des Krieges an ein starkes Bedürfnis zu helfen. Als internationales Team aus 45 Nationen gibt es vielfältige persönliche Beziehungen und großes privates Engagement. Viele Familien haben Geflüchtete aufgenommen und neben Geld auch Alltagsausstattung gespendet”, erklärt Unternehmenssprecherin Karin Raths. “Die hohe Spendensumme von über 40.000 Euro an unseren langjährigen Projektpartner arche noVa hat auch uns sehr positiv überrascht. Auf Wunsch unserer Mitarbeitenden werden wir das Spendenprogramm in dieser Form auch 2023 weiterführen!” „Wir sind sehr beeindruckt von dem Engagement des GlobalFoundries-Teams. Der hohe Spendenbetrag ist ein großer Vertrauensbeweis für die seit Jahren anhaltende partnerschaftliche Zusammenarbeit und zeigt uns, was möglich ist, wenn soziale Verantwortung konsequent gelebt wird“, betont Mathias Anderson, Geschäftsführer von arche noVa. „Das Spendenprogramm GlobalGives ermöglicht uns seit 2020, von Krisen und Konflikten betroffene Menschen mit humanitärer Hilfe zu erreichen. Im Falle der Ukraine bedeutet dies etwa die Verteilung von lebenswichtigen Hilfsgütern wie Wasser, Lebensmittel, Hygienekits oder auch Öfen und Brennstoffen gegen die winterliche Kälte. Angesichts der besonders in der Ostukraine weiterhin prekären humanitären Lage ist diese Solidarität sehr wichtig.“ GF engagiert sich weltweit seit vielen Jahren im Umfeld seiner Standorte. Mitarbeitende können Vereine und Organisationen in die Spendendatenbank GlobalGives eintragen. Die Spenden an diese Empfänger werden von GF verdoppelt. GF-Mitarbeitende können auch ihren ehrenamtlichen Einsatz in Vereinen eintragen. Im vergangenen Jahr spendeten Mitarbeitende des Dresdner GF-Standorts für regionale Projekte so mehr als 200.000 Euro. Dazu kamen fast 1.000 Stunden Freiwilligenarbeit für 118 Organisationen in Sachsen. Aktuell unterstützt GlobalFoundries auch humanitäre Projekte für die Opfer des Erdbebens in der türkisch-syrischen Grenzregion über das Bündnis Aktion Deutschland hilft, in dem auch arche noVa aktiv ist. Bildquelle: arche noVa/New Way About GF GlobalFoundries (GF) is one of the world’s leading semiconductor manufacturers. GF is redefining innovation and semiconductor manufacturing by developing and delivering feature-rich process technology solutions that provide leadership performance in pervasive high growth markets. GF offers a unique mix of design, development and fabrication services. With a talented and diverse workforce and an at-scale manufacturing footprint spanning the U.S., Europe and Asia, GF is a trusted technology source to its worldwide customers. For more information, visit www.gf.com. ©GlobalFoundries Inc., GF, GlobalFoundries, the GF logos and other GF marks are trademarks of GlobalFoundries Inc. Or its subsidiaries. All other trademarks are the property of their respective owners. Media Contacts: GF Karin Raths[email protected]+49 172 7934969
VueReal Inc. Announces the Appointment of Kevin Soukup, a Semiconductor Industry Veteran, as a Member of the Board of Directors March 20, 2023
Amkor Technology and GlobalFoundries to Provide At-scale Semiconductor Test and Assembly Services in Europe February 16, 2023 Partnership expands European and transatlantic semiconductor supply chain TEMPE, Ariz. and DRESDEN, Germany, February 16, 2023 — Amkor Technology, Inc. (Nasdaq: AMKR), a leading provider of semiconductor packaging and test services, and GlobalFoundries (Nasdaq: GFS) (GF), a global leader in feature-rich semiconductor manufacturing, announced today that the two companies have formed a strategic partnership. This new partnership will enable a comprehensive EU/US supply chain from semiconductor wafer production at GF to OSAT* services at Amkor’s site in Porto, Portugal. GF plans to transfer its 300mm Bump and Sort lines from its Dresden site to Amkor’s Porto operations to establish the first at-scale back-end facility in Europe. GF will maintain ownership of its transferred tools, processes, and IP in Porto. Both partners also plan to collaborate on future development efforts in Portugal. Today, Amkor is the only high-volume, Tier 1 OSAT in Europe, and GF Dresden is Europe’s largest and most advanced semiconductor manufacturing services company. This partnership enables the first semiconductor manufacturing (foundry) through advanced packaging semiconductor supply chain outside of Asia, creating more European supply chain autonomy for key end markets including automotive. “This strategic partnership with GF will enhance the advanced semiconductor packaging supply chain in Europe and ramp up competitive capacity to complement what is available in Asia,” said Kevin Engel, Amkor’s Executive Vice President, Business Units. “Amkor’s collaboration with GF enables us to significantly expand manufacturing scale and bring to market additional assembly and test capability to support our European and global customers.” “GF remains committed to growing our European manufacturing ecosystem to support local and global customers, especially in the Automotive markets. This partnership with Amkor in Portugal will provide much needed services within the EU and expand the US-European semiconductor supply chain,” said Mike Hogan, GlobalFoundries Chief Business Officer. At this pivotal time in the semiconductor industry, manufacturers and suppliers alike are confronted with political, industrial, technological, and financial disruptions. Amkor’s global support and local presence combined with GF’s tools and processes will enable the Porto site to help the European Union pursue its goals of ensuring supply chain stability and delivering the next-generation automotive and other critical chip solutions. * Outsourced Semiconductor Assembly and Test vendors provide third-party IC-packaging and test services. 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. About Amkor Amkor Technology, Inc. is one of the world’s largest providers of outsourced semiconductor packaging and test services and a strategic manufacturing partner to leading semiconductor companies, foundries and electronics OEMs. Founded in 1968, Amkor’s operational base includes production facilities, product development centers and sales and support offices in Asia, Europe and the USA. Visit amkor.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, and neither Amkor nor GF undertakes any obligation to update any of their respective 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: GF Karin Raths[email protected]+49 172 7934969 Erica McGill[email protected] 518-795-5240 Amkor Technology Investor Relations Jennifer Jue Senior Director, Investor Relations and Finance 480-786-7594 [email protected] Media Relations Christina Parsons Director, Marketing Communications 480-786-7823 [email protected]
GlobalFoundries Reports Fourth Quarter and Fiscal Year 2022 Financial Results February 14, 2023 Record Revenue, Gross Margin, Adjusted EBITDA, and Net Income MALTA, N.Y., February 14, 2023 (GLOBE NEWSWIRE) — GlobalFoundries Inc. (GF) (Nasdaq: GFS) today announced preliminary financial results for the fourth quarter and fiscal year ended December 31, 2022. Key Fourth Quarter Financial Highlights Revenue of $2,101 million, up 14% year-over-year. Gross margin of 29.6% and adjusted gross margin of 30.1%. Net income of $668 million. Adjusted EBITDA of $821 million. Cash, cash equivalents and marketable securities of $3,346 million. Key Full Year 2022 Financial Highlights Revenue of $8,108 million, up 23% year-over-year. Gross margin of 27.6% and adjusted gross margin of 28.4%. Net income margin of 17.8% and adjusted EBITDA margin of 38.1%. “Our revenue in 2022 grew 23% year-over-year, and we delivered record gross margin and net income, making significant progress toward our long-term financial model,” said CEO Dr. Thomas Caulfield. “In the fourth quarter, the GF team continued to execute on its commitments to customers and shareholders, despite the well-publicized inventory correction. As we look to 2023, we will continue to deepen our engagements with our customers in bringing specialty and differentiated solutions to market.” Recent Business Highlights GF and General Motors jointly announced that General Motors has entered into a long-term agreement with GF to secure a capacity corridor in our advanced Fab in Upstate NY for GM’s U.S. supply chain. This first-of-its-kind, multi-year agreement brings a critical process to the U.S. and supports GM’s strategy to reduce the number of unique chips needed to power increasingly complex and tech-laden vehicles. GF announced that it has acquired Renesas Electronics Corporation’s proprietary and production-proven Conductive Bridging Random Access Memory (CBRAM) Technology, a low power memory solution designed to enable a range of applications in home and industrial IoT and smart mobile devices. The transaction further strengthens GF’s memory portfolio and extends its roadmap of embedded nonvolatile memory solutions that is easy to integrate into other technology nodes. GF completed the sale of its East Fishkill, NY, facility to onsemi, on December 31, 2022, for a final purchase price of $406m. The deal enables GlobalFoundries to further optimize our assets globally and intensify our investments in the differentiated technologies that fuel our growth while securing a long-term future for the East Fishkill facility and its employees. Unaudited Summary Quarterly Results (in millions USD, except per share amounts and wafer shipments) Year-over-year Sequential Q4’22 Q3’22 Q4’21 Q4’22 vs Q4’21 Q4’22 vs Q3’22 Net revenue $ 2,101 $ 2,074 $ 1,847 $ 254 14 % $ 27 1 % Gross profit 622 610 384 $ 238 62 % $ 12 2 % Gross margin 29.6 % 29.4 % 20.8 % +880bps +20bps Adjusted gross profit(1) $ 633 $ 621 $ 397 $ 236 59 % $ 12 2 % Adjusted gross margin 30.1 % 29.9 % 21.5 % +860bps +20bps Operating profit $ 288 $ 357 $ 87 $ 201 231 % $ (69 ) (19 )% Operating margin 13.7 % 17.2 % 4.7 % +900bps (350)bps Adjusted operating profit(1) $ 425 $ 389 $ 142 $ 283 199 % $ 36 9 % Adjusted operating margin 20.2 % 18.8 % 7.7 % +1,250bps +140bps Net income(2) $ 668 $ 336 $ 43 $ 625 1,453 % $ 332 99 % Net income margin 31.8 % 16.2 % 2.3 % +2,950bps +1,560bps Adjusted net income(1)(2)(3) $ 800 $ 368 $ 98 $ 702 716 % $ 432 117 % Adjusted net income margin 38.1 % 17.7 % 5.3 % +3,280bps +2,040bps Diluted earnings per share (“EPS”) $ 1.21 $ 0.61 $ 0.08 $ 1.13 1,413 % $ 0.60 98 % Adjusted diluted earnings per share(1) $ 1.44 $ 0.67 $ 0.18 $ 1.26 700 % $ 0.77 115 % Adjusted EBITDA(1)(4) $ 821 $ 793 $ 584 $ 237 41 % $ 28 4 % Adjusted EBITDA margin 39.1 % 38.2 % 31.6 % +750bps +90bps Cash from operations $ 491 $ 679 $ 1,148 $ (657 ) (57 )% $ (188 ) (28 )% Wafer shipments (300mm equivalent) (in thousands) 580 637 622 (42 ) (7 )% (57 ) (9 )% (1) Adjusted gross profit, adjusted operating profit, adjusted net income, adjusted diluted earnings per share, and adjusted EBITDA are adjusted non-IFRS metrics; please see the reconciliation of IFRS to adjusted non-IFRS metrics in the section “Unaudited Reconciliation of IFRS to Adjusted non-IFRS” below. (2) Includes the gain on sale of our EFK business in December 2022. (3) Beginning in Q4 2022, the Company has revised its definition of adjusted net income to include an adjustment for restructuring charges and the associated tax impact. The change was made due to a restructuring undertaken in Q4 2022. The Company believes the revised definition provides management and investors with more useful information to evaluate the operations of our business. Adjusted net income (loss) is now defined as net income (loss) adjusted for share-based compensation expense, restructuring charges and the associated tax impact. (4) Beginning in Q3 2022, the Company has revised its definition of adjusted EBITDA to include an adjustment for finance income. The change was made due to the Company making an investment during Q2 2022 of approximately $1.0 billion in marketable securities. The Company believes the revised definition provides management and investors more useful information to evaluate the operations of our business. Adjusted EBITDA is now defined as net income (loss), adjusted for the impact of finance expense, finance income, income tax expense, depreciation, amortization, share-based compensation expense, transaction gains and associated expenses, restructuring charges, labor optimization initiatives and litigation settlement. Unaudited Summary Annual Results (in millions USD, except per share amounts and wafer shipments) Year-over-year FY2022 FY2021 FY22 vs FY21 Net revenue $ 8,108 $ 6,585 $ 1,523 23 % Gross profit 2,239 $ 1,013 $ 1,226 121 % Gross margin 27.6 % 15.4 % +1,220bps Adjusted gross profit(1) $ 2,303 $ 1,068 $ 1,235 116 % Adjusted gross margin 28.4 % 16.2 % +1,220bps Operating profit (loss) $ 1,167 $ (60 ) $ 1,227 2,045 % Operating margin 14.4 % (0.9 )% +1,530bps Adjusted operating profit(1) $ 1,443 $ 168 $ 1,275 759 % Adjusted operating margin 17.8 % 2.6 % +1,520bps Net income (loss)(2) $ 1,446 $ (254 ) $ 1,700 669 % Net income margin 17.8 % (3.9 )% +2,170bps Adjusted net income (loss)(1)(2)(3) $ 1,717 $ (26 ) $ 1,743 6,704 % Adjusted net income(loss) margin 21.2 % (0.4 )% +2,160bps Diluted EPS $ 2.62 $ (0.49 ) $ 3.11 635 % Adjusted diluted earnings per share(1) $ 3.11 $ (0.05 ) $ 3.16 6,320 % Adjusted EBITDA(1)(4) $ 3,088 $ 1,848 $ 1,240 67 % Adjusted EBITDA margin 38.1 % 28.1 % +1,000bps Cash from operations $ 2,624 $ 2,839 $ (215 ) 8 % Wafer shipments (300mm equivalent) (in thousands) 2,472 2,374 98 4 % (1) Adjusted gross profit, adjusted operating profit, adjusted net income, adjusted diluted earnings per share, and adjusted EBITDA are adjusted non-IFRS metrics; please see the reconciliation of IFRS to adjusted non-IFRS metrics in the section “Unaudited Reconciliation of IFRS to Adjusted non-IFRS” below. (2) Includes the gain on sale of our EFK business in December 2022. (3) Beginning in Q4 2022, the Company has revised its definition of adjusted net income to include an adjustment for restructuring charges and the associated tax impact. The change was made due to a restructuring undertaken in Q4 2022. The Company believes the revised definition provides management and investors with more useful information to evaluate the operations of our business. Adjusted net income (loss) is now defined as net income (loss) adjusted for share-based compensation expense, restructuring charges and the associated tax impact. (4) Beginning in Q3 2022, the Company has revised its definition of adjusted EBITDA to include an adjustment for finance income. The change was made due to the Company making an investment during Q2 2022 of approximately $1.0 billion in marketable securities. The Company believes the revised definition provides management and investors more useful information to evaluate the operations of our business. Adjusted EBITDA is now defined as net income (loss), adjusted for the impact of finance expense, finance income, income tax expense, depreciation, amortization, share-based compensation expense, transaction gains and associated expenses, restructuring charges, labor optimization initiatives and litigation settlement. Summary of First Quarter 2023 Outlook (unaudited in millions USD, except per share amounts)(1) IFRS Share-based compensation Non-IFRS Adjusted Net revenue $1,810 – $1,850 — — Gross Profit $481 – $512 $15- $17 $498 – $527 Gross Margin (mid-point) 27.1% 28.0% Operating Profit $233 – $282 $40 – $50 $283 – $322 Operating Margin (mid-point) 14.1% 16.5% Net Income $202 – $257 $40 – $50 $252 – $297 Net Income Margin (mid-point) 12.5% 15.0% Diluted EPS $0.36 – $0.46 $0.45 – $0.53 Adjusted EBITDA(2) NA $667 – $722 Adj. EBITDA Margin (mid-point) 37.9% (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 First 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)Reflects change to adjusted EBITDA definition discussed in more detail elsewhere in this release. Unaudited Consolidated Statements of Operations Three Months Ended Year Ended (in millions USD, except for per share amounts) December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Net revenue $ 2,101 $ 1,847 $ 8,108 $ 6,585 Cost of revenue 1,479 1,463 5,869 5,572 Gross profit $ 622 $ 384 $ 2,239 $ 1,013 Operating expenses: Research and development 110 130 482 478 Sales, marketing, general and administrative 130 167 496 595 Restructuring charges 94 — 94 — Total operating expenses $ 334 $ 297 $ 1,072 $ 1,073 Operating profit (loss) $ 288 $ 87 $ 1,167 $ (60 ) Finance expense, net (2 ) (26 ) (60 ) (108 ) Other income (expense) (13 ) 8 22 (8 ) Gain on sale of a business 403 403 Income tax expense (8 ) (26 ) (86 ) (78 ) Net income (loss) $ 668 $ 43 $ 1,446 $ (254 ) Attributable to: Shareholders of GlobalFoundries 668 44 1,448 (250 ) Non-controlling interest — (1 ) (2 ) (4 ) Earnings (Loss) per share : Basic $ 1.22 $ 0.08 $ 2.69 $ (0.49 ) Diluted $ 1.21 $ 0.08 $ 2.62 $ (0.49 ) Shares used in earnings per share calculation: Basic 546 522 539 506 Diluted 554 540 552 506 Unaudited Consolidated Statements of Financial Position (in millions USD) December 31, 2022 December 31, 2021 Assets: Cash and cash equivalents $ 2,352 $ 2,939 Receivables, prepayments and other 1,487 1,231 Marketable securities 622 — Inventories 1,339 1,121 Current assets $ 5,800 $ 5,291 Deferred tax assets $ 292 $ 353 Property, plant, and equipment, net 10,596 8,713 Marketable securities 372 — Other assets 781 671 Non-current assets $ 12,041 $ 9,737 Total assets $ 17,841 $ 15,028 Liabilities and equity: Current portion of long-term debt $ 223 $ 297 Other current liabilities 3,136 2,866 Current liabilities $ 3,359 $ 3,163 Non-current portion of long-term debt $ 2,288 $ 1,716 Other liabilities 2,234 2,116 Non-current liabilities $ 4,522 $ 3,832 Shareholders’ equity: Common stock/additional paid-in capital $ 23,842 $ 23,498 Accumulated deficit (14,021 ) (15,469 ) Accumulated other comprehensive (loss) 92 (54 ) Non-controlling interest 47 58 Total liabilities and equity $ 17,841 $ 15,028 Unaudited Consolidated Statements of Cash Flows Three Months Ended Year Ended (in millions USD) December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Cash flows from operating activities: Net income (loss) $ 668 $ 43 $ 1,446 $ (254 ) Depreciation and amortization 409 419 1,623 1,619 Gain on the sale of a fabrication facility (403 ) — (403 ) — Finance expense, net and other(1) (3 ) (6 ) 1 1 Deferred income taxes 30 40 82 93 Other non-cash operating activities 16 23 50 150 Net change in working capital (226 ) 629 (175 ) 1,230 Net cash provided by operating activities $ 491 $ 1,148 $ 2,624 $ 2,839 Cash flows from investing activities: Purchases of property, plant, equipment, and intangible assets $ (991 ) $ (649 ) $ (3,059 ) $ (1,766 ) Other investing activities (60 ) 23 (999 ) 316 Net cash used in investing activities $ (1,051 ) $ (626 ) $ (4,058 ) $ (1,450 ) Cash flows from financing activities: Proceeds from issuance of equity instruments $ 12 $ 1,444 $ 168 $ 1,444 Repayments of shareholder loan — — — (568 ) Proceeds (repayment) of debt, net 255 (72 ) 581 (343 ) Other financing activities 93 27 93 117 Net cash provided by financing activities $ 360 $ 1,399 $ 842 $ 650 Effect of exchange rate changes 11 (1 ) 5 (8 ) Net change in cash and cash equivalents $ (189 ) $ 1,920 $ (587 ) $ 2,031 Cash and cash equivalents at the beginning of the period 2,541 1,019 2,939 908 Cash and cash equivalents at the end of the period $ 2,352 $ 2,939 $ 2,352 $ 2,939 (1) Finance expense, net and other has been adjusted to include interest and taxes paid that were previously included in “Other non-cash operating activities.” Prior period amounts have been adjusted accordingly. Unaudited Reconciliation of IFRS to Adjusted Non-IFRS Three Months Ended Year Ended (in millions USD) December 31, 2022 September 30, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Gross profit $ 622 $ 610 $ 384 $ 2,239 $ 1,013 Gross profit margin 29.6 % 29.4 % 20.8 % 27.6 % 15.4 % Share based compensation $ 11 $ 11 $ 13 $ 64 $ 55 Adjusted gross profit $ 633 $ 621 $ 397 $ 2,303 $ 1,068 Adjusted gross margin 30.1 % 29.9 % 21.5 % 28.4 % 16.2 % Operating profit (loss) $ 288 $ 357 $ 87 $ 1,167 $ (60 ) Operating profit margin 13.7 % 17.2 % 4.7 % 14.4 % (0.9 )% Share based compensation $ 43 $ 32 $ 55 $ 182 $ 228 Restructuring charges(1) $ 94 — — $ 94 — Adjusted operating profit $ 425 $ 389 $ 142 $ 1,443 $ 168 Adjusted operating profit margin 20.2 % 18.8 % 7.7 % 17.8 % 2.6 % Net income (loss)(2) $ 668 $ 336 $ 43 $ 1,446 $ (254 ) Net income (loss) margin 31.8 % 16.2 % 2.3 % 17.8 % (3.9 )% Share based compensation $ 43 $ 32 $ 55 $ 182 $ 228 Restructuring charges(1) $ 94 — — $ 94 — Income tax effect(3) $ (5 ) $ — $ — $ (5 ) $ — Adjusted net income (loss)(4) $ 800 $ 368 $ 98 $ 1,717 $ (26 ) Adjusted net income (loss) margin 38.1 % 17.7 % 5.3 % 21.2 % (0.4 )% Diluted earnings (loss) per share $ 1.21 $ 0.61 $ 0.08 $ 2.62 $ (0.49 ) Share based compensation $ 0.07 $ 0.06 $ 0.10 $ 0.33 $ 0.44 Restructuring charges(1) $ 0.17 — — $ 0.17 — Income tax effect $ (0.01 ) — — $ (0.01 ) — Adjusted diluted earnings (loss) per share $ 1.44 $ 0.67 $ 0.18 $ 3.11 $ (0.05 ) (1) Includes $3.1 million of share based compensation in Q4 2022. (2)Includes the gain on sale of our EFK business in December 2022. (3) Relates to restructuring charges in Q4 2022. (4) Reflects change to adjusted net income (loss) definition discussed in more detail elsewhere in this release. Unaudited Reconciliation of Net Income to Adjusted EBITDA Three Months Ended Year Ended (in millions USD) December 31, 2022 September 30, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Net income for the period $ 668 $ 336 $ 43 $ 1,446 $ (254 ) Depreciation and amortization 409 395 419 1,623 1,619 Finance expense 28 28 28 111 114 Finance income (26 ) (17 ) NA (51 ) NA Income tax expense 8 19 26 86 78 Share based compensation 43 32 55 182 228 Restructuring charges(1) 94 — — 94 — Labor optimization initiatives — — 5 — 17 (Gains) on transactions, legal settlements and transaction expenses(2) (403 ) — 8 (403 ) 46 Adjusted EBITDA(3) $ 821 $ 793 $ 584 $ 3,088 $ 1,848 Adjusted EBITDA margin 39.1 % 38.2 % 31.6 % 38.1 % 28.1 % (1) Includes $3.1 million of share-based compensation in Q4 2022. (2)Activity for the year ended December 31, 2022, relates to the gain on sale of our EFK business. (3)Reflects change to adjusted EBITDA definition discussed in more detail elsewhere in this release. Adjusted Financial Measures (Non-IFRS) In addition to the financial information presented in accordance with IFRS, this press release includes the following adjusted non-IFRS metrics: adjusted gross profit, adjusted operating profit, adjusted net income (loss), adjusted diluted earnings (loss) per share and adjusted EBITDA. We define adjusted gross profit as gross profit adjusted for share-based compensation expense. We define adjusted operating profit as profit from operations adjusted for share-based compensation expense and restructuring charges. We define adjusted net income (loss) as net income (loss) adjusted for share-based compensation expense, restructuring charges and the associated tax impact. We define adjusted diluted EPS as adjusted net income (loss) divided by the dilutive shares. We define adjusted EBITDA as net income (loss), adjusted for the impact of finance expense, finance income, income tax expense, depreciation, amortization, share-based compensation expense, transaction gains and associated expenses, restructuring charges, labor optimization initiatives and litigation settlements. We believe that in addition to our results determined in accordance with IFRS, these adjusted non-IFRS measures provide useful information to both management and investors in measuring our financial performance and highlight trends in our business that may not otherwise be apparent when relying solely on IFRS measures. These adjusted non-IFRS financial measures provide supplemental information regarding our operating performance that excludes certain gains, losses and non-cash charges that occur relatively infrequently and/or that we consider to be unrelated to our core operations. For further information regarding these non-IFRS measures, please refer to “Unaudited Reconciliation of IFRS to Adjusted Non-IFRS” table above. Adjusted non-IFRS financial information is presented for supplemental informational purposes only and should not be considered in isolation or as a substitute for financial information presented in accordance with IFRS. Our presentation of adjusted non-IFRS measures should not be construed as an inference that our future results will be unaffected by unusual or nonrecurring items. Other companies in our industry may calculate these measures differently, which may limit their usefulness as a comparative measure. Conference Call and Webcast Information GF will host a conference call with the financial community on Tuesday, February 14, 2022 at 8:30 a.m. U.S. Eastern Time (ET) to review the Fourth Quarter and Full Year 2022 results in detail. Interested parties may join the scheduled conference call by registering at https://register.vevent.com/register/BIb7c5c31960b748cb82f3624738c04f6d The call will be webcast and can be accessed from the GF Investor Relations website https://investors.gf.com. A replay of the call will be available on the GF Investor Relations website within 24 hours of the actual call. About GlobalFoundries GlobalFoundries® (GF®) is one of the world’s leading semiconductor manufacturers. GF is redefining innovation and semiconductor manufacturing by developing and delivering feature-rich process technology solutions that provide leadership performance in pervasive high growth markets. GF offers a unique mix of design, development and fabrication services. With a talented and diverse workforce and an at-scale manufacturing footprint spanning the U.S., Europe and Asia, GF is a trusted technology source to its worldwide customers. For more information, visit www.gf.com. Forward-looking Statements This press release includes “forward-looking statements” that reflect our current expectations and views of future events. These forward-looking statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995 and include but are not limited to, statements regarding our financial outlook, future guidance, product development, business strategy and plans, and market trends, opportunities and positioning. These statements are based on current expectations, assumptions, estimates, forecasts, projections and limited information available at the time they are made. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall,” “outlook,” “on track,” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are subject to a broad variety of risks and uncertainties, both known and unknown. Any inaccuracy in our assumptions and estimates could affect the realization of the expectations or forecasts in these forward-looking statements. For example, our business could be impacted by the COVID-19 pandemic and supply chain disruptions due to the Russia/Ukraine conflict and actions taken in response to such events; the market for our products may develop more slowly than expected or than it has in the past; we may fail to achieve the full benefits of our current restructuring plan; our operating results may fluctuate more than expected; there may be significant fluctuations in our results of operations and cash flows related to our revenue recognition or otherwise; a network or data security incident that allows unauthorized access to our network or data or our customers’ data could damage our reputation; we could experience interruptions or performance problems associated with our technology, including a service outage; and global economic conditions could deteriorate, including due to increasing interest rates, rising inflation and any potential recession. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make. Moreover, we operate in a competitive and rapidly changing market, and new risks may emerge from time to time. You should not rely upon forward-looking statements as predictions of future events. These statements are based on our historical performance and on our current plans, estimates and projections in light of information currently available to us, and therefore you should not place undue reliance on them. Although we believe that the expectations reflected in our statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances described in the forward-looking statements will be achieved or occur. Moreover, neither we, nor any other person, assumes responsibility for the accuracy and completeness of these statements. Recipients are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date such statements are made and should not be construed as statements of fact. Except to the extent required by federal securities laws, we undertake no obligation to update any information or any forward-looking statements as a result of new information, subsequent events, or any other circumstances after the date hereof, or to reflect the occurrence of unanticipated events. For a discussion of potential risks and uncertainties, please refer to the risk factors and cautionary statements in our 2021 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 and GM Announce Long-Term Direct Supply Agreement for U.S. Production of Semiconductor Chips February 9, 2023 MALTA, N.Y. and DETROIT, Mich. — February 9, 2023 — General Motors Co. (NYSE: GM) and GlobalFoundries (NASDAQ: GFS) (GF) today announced a strategic, long-term agreement establishing a dedicated capacity corridor exclusively for GM’s chip supply. Through this first-of-its-kind agreement, GF will manufacture for GM’s key chip suppliers at GF’s advanced semiconductor facility in upstate New York bringing a critical process to the U.S. This agreement supports GM’s strategy to reduce the number of unique chips needed to power increasingly complex and tech-laden vehicles. With this strategy, chips can be produced in higher volumes and are expected to offer better quality and predictability, maximizing high value content creation for the end customer. Semiconductors are the foundation of the technologies that are powering the electrification, autonomous driving and connectivity of the auto industry, and they have been center stage in the global chip shortage that has impacted automakers the last couple of years. “We see our semiconductor requirements more than doubling over the next several years as vehicles become technology platforms,” said Doug Parks, GM executive vice president of Global Product Development, Purchasing and Supply Chain. “The supply agreement with GlobalFoundries will help establish a strong, resilient supply of critical technology in the U.S. that will help GM meet this demand, while delivering new technology and features to our customers.” “At GF we are committed to working with our customers in new and innovative ways to best address the challenges of today’s global supply chains,” said Dr. Thomas Caulfield, president and CEO of GF. “GF will expand its production capabilities exclusively for GM’s supply chain, enabling us to strengthen our partnership with the automotive industry and New York State, while further accelerating automotive innovation with U.S.-based manufacturing for a more resilient supply chain.” “This first of its kind agreement between GlobalFoundries and General Motors is going to drive the Capital Region economy forward and ensure Upstate New York remains in the driver’s seat as one of the nation’s leading hubs for semiconductor manufacturing that is so critical to the supply chain of the auto industry. I have long said that Upstate New York’s semiconductor corridor will be a major engine powering America’s technological future, and now ‘Made in New York’ chips will help jumpstart the next generation of vehicles for GM across the country,” said U.S. Senate Majority Leader Charles Schumer. “Thanks to my CHIPS and Science Act, we are bringing manufacturing back to our country and America’s supply chains are being secured, creating good-paying jobs here in Upstate New York, not overseas. This partnership is yet another example that our nation’s future will be built in Upstate New York, with the Capital Region as a global center for the future of the microchip industry.” New York Governor Kathy Hochul said: “We’re making New York State not only the semiconductor capital of the country — but of the globe. This agreement will help to further establish New York State as a major hub for semiconductor manufacturing. With our nation-leading Green CHIPS legislation and the new Governor’s Office of Semiconductor Expansion, Management, and Integration, we are helping businesses like GM and GlobalFoundries expand the chips manufacturing ecosystem in our state, creating jobs and opportunities for generations to come.” GF is responding to the global demand for semiconductors through a series of strategic long-term agreements with existing and new customers and simultaneously expanding global capacity to meet customer demand in partnership with federal and local governments. Supportive policies like the bipartisan CHIPS and Science Act are encouraging the onshoring of semiconductor production and reestablishing the U.S. as a global leader of this critical technology. ### About General Motors (NYSE:GM) is a global company focused on advancing an all-electric future that is inclusive and accessible to all. At the heart of this strategy is the Ultium battery platform, which powers everything from mass-market to high-performance vehicles. General Motors, its subsidiaries and its joint venture entities sell vehicles under the Chevrolet, Buick, GMC, Cadillac, Baojun and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety and security services, can be found at https://www.gm.com. About GF GlobalFoundries (GF) is one of the world’s leading semiconductor manufacturers. GF is redefining innovation and semiconductor manufacturing by developing and delivering feature-rich process technology solutions that provide leadership performance in pervasive high growth markets. GF offers a unique mix of design, development and fabrication services. With a talented and diverse workforce and an at-scale manufacturing footprint spanning the U.S., Europe and Asia, GF is a trusted technology source to its worldwide customers. For more information, visit www.gf.com. ©GlobalFoundries Inc., GF, GlobalFoundries, the GF logos and other GF marks are trademarks of GlobalFoundries Inc. Or its subsidiaries. All other trademarks are the property of their respective owners. Forward-looking Information This news release may contain forward-looking statements, which involve risks and uncertainties. Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. GF undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, unless require by law. Media Contacts: Dan Flores GM Communications[email protected] 313-418-2374 GF Erica McGill[email protected] 518-795-5240
