GlobalFoundries Named to Newsweek’s “America’s Most Responsible Companies 2023” List December 7, 2022 MALTA, N.Y., December 7, 2022 — GlobalFoundries (Nasdaq: GFS) (GF), a global leader in feature-rich semiconductor manufacturing, has been named to Newsweek’s list of “America’s Most Responsible Companies 2023.” GF’s inclusion on the list, which was announced today, is the latest recognition of the company’s longstanding commitment to environmentally sustainable manufacturing and corporate responsibility. “ESG is a priority for GF, and we are pleased to be recognized by Newsweek on its list of America’s Most Responsible Companies 2023,” said John Toy, chief of ethics and sustainability at GF. “At the same time, we recognize there is still much work to be done. Just as the chips we manufacture are vital to the innovations that are leading to a cleaner, healthier future, we are committed to minimizing our impact on the environment, driving positive change, and creating value through corporate responsibility.” America’s Most Responsible Companies 2023 is presented by Newsweek and Statista Inc., and based on available key performance indicators derived from corporate social responsibility reports, sustainability reports, and other reports as well as an independent survey. The key performance indicators focused on company performance in the environmental, social, and corporate governance areas, while the independent survey asked U.S. citizens about their perception of company activities related to corporate social responsibility. The final list recognizes the top 500 most responsible companies in the United States, spanning 14 industries. GF’s ESG efforts were also recently evaluated by Morningstar Sustainalytics, which recognized GF with a “Low Risk” rating and ranked the company 15th among the 329 rated companies in the semiconductors industry group. Additionally, in April 2022, rating agency ISS recognized GF for a “Prime” corporate ESG performance and ranked it among the top 10% of companies in the semiconductor industry. Learn more about ESG and corporate responsibility at GF at: https://gf.com/about-us/corporate-responsibility 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: Michael Mullaney[email protected]
Purdue University and GlobalFoundries Partner to Strengthen Research and Development, Semiconductor Education November 23, 2022 Multifaceted collaboration to include joint R&D programs in partnership with Purdue students and faculty WEST LAFAYETTE, Ind., and MALTA, N.Y., November 23, 2022 — Purdue University, a public university with leading semiconductor workforce development and R&D programs, and GlobalFoundries (Nasdaq: GFS) (GF), a global leader in feature-rich semiconductor manufacturing, today announced a new strategic partnership to strengthen and expand collaboration on semiconductor research and education. The announcement was made following a virtual signing ceremony this week with Dr. Mung Chiang, president-elect and executive vice president of Purdue University, and Dr. Thomas Caulfield, president and CEO of GF. The agreement outlines collaboration opportunities between GF and Purdue on joint research and development projects as well as educational opportunities. “Purdue launched the semiconductor degrees program (SDP) earlier in 2022, continued to grow world leading research in semiconductors, and welcomed multiple companies to our new Discovery Park District. We are excited to partner with GlobalFoundries to crystalize our offerings into programs relevant to the foundation of digital economy,” Chiang said. “We are intensifying our efforts not only to scale-up the talent pipeline, but also to create the depth of innovation expertise needed to advance U.S. leadership in semiconductors.” “Today’s announcement underscores the widespread appreciation of how GF’s feature-rich chips enable many of the devices and technologies humanity relies on every day, and ever-growing recognition of the strategic importance of semiconductors to global supply chains and economic security,” Caulfield said. “To accelerate this forward momentum, GF is proud to partner with Purdue on jointly advancing semiconductor research and development, working together with Purdue’s talented faculty and students.” For GF, the partnership with Purdue 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. Earlier this year, Purdue launched the first large-scale comprehensive semiconductor degrees program in the United States, with a set of innovative, interdisciplinary degrees and credentials in semiconductors and microelectronics. GF Chief Technology Officer Gregg Bartlett is an inaugural member of Purdue’s Semiconductor Degrees Leadership Board, which advises on the program and its curriculum. The area is among the critical topics under Purdue’s Next Moves, strategic initiatives that advance the university’s competitive advantage. About Purdue University Purdue University is a top public research institution developing practical solutions to today’s toughest challenges. Ranked in each of the last five years as one of the 10 Most Innovative universities in the United States by U.S. News & World Report, Purdue delivers world-changing research and out-of-this-world discovery. Committed to hands-on and online, real-world learning, Purdue offers a transformative education to all. Committed to affordability and accessibility, Purdue has frozen tuition and most fees at 2012-13 levels, enabling more students than ever to graduate debt-free. See how Purdue never stops in the persistent pursuit of the next giant leap at https://stories.purdue.edu 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: GlobalFoundries Michael Mullaney[email protected] Purdue University Brian Huchel [email protected]
GlobalFoundries Appoints New Head of Global Supply Chain November 21, 2022 MALTA, N.Y., November 21, 2022 – GlobalFoundries (Nasdaq: GFS) (GF), a global leader in feature-rich semiconductor manufacturing, today announced the appointment of Ashlie Wallace as Senior Vice President of Global Supply Chain, effective November 28, 2022. In this role, Ms. Wallace will spearhead GF’s global supply chain operations including logistics, supply planning, sourcing, and procurement to drive operational efficiency that will support the company’s continued growth. “Ashlie’s deep expertise in supply chain management will continue to ensure GF is at the forefront of our industry in navigating the current environment and short-term supply chain challenges while we build for the future,” said David Reeder, CFO of GF. “I’m looking forward to her leadership as we continue to maximize the full potential of our global manufacturing footprint that is increasingly critical to our long-term value creation.” With more than 15 years of experience in technology procurement and supply chain management, Ms. Wallace was most recently Vice President of Services Supply Chain and Global Logistics for Cisco, responsible for global logistics operations and the service supply chain. Prior to Cisco, Ms. Wallace served in various leadership positions at Dell Technologies including Vice President of Global Server Procurement and Vice President of Global Inventory Management. Ms. Wallace earned her Master of Business Administration from University of California, Los Angeles and received a Bachelor of Arts in International Studies from Texas State University. About GF GlobalFoundries (GF) is one of the world’s leading semiconductor manufacturers. GF is redefining innovation and semiconductor manufacturing by developing and delivering feature-rich process technology solutions that provide leadership performance in pervasive high growth markets. GF offers a unique mix of design, development and fabrication services. With a talented and diverse workforce and an at-scale manufacturing footprint spanning the U.S., Europe and Asia, GF is a trusted technology source to its worldwide customers. For more information, visit www.gf.com. ©GlobalFoundries Inc., GF, GlobalFoundries, the GF logos and other GF marks are trademarks of GlobalFoundries Inc. Or its subsidiaries. All other trademarks are the property of their respective owners. Forward-looking Information This news release may contain forward-looking statements, which involve risks and uncertainties. Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. GF undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, unless require by law. Media Contact: Erica McGill[email protected] +1-518-795-5240
GF Collaborates with Fabrinet on Fiber-Attach Capability for Silicon Photonics Platform November 10, 2022 In March 2022, GlobalFoundries announced GF FotonixTM a new platform that monolithically integrates high-performance RF, digital CMOS and silicon photonics (SiPH) circuits on the same chip, while leveraging the scale, efficiencies and tight process controls of 300 millimeter silicon manufacturing. GF has qualified this innovative technology to meet the demands of today and tomorrow’s most urgent, complex and difficult challenges in areas such as data center interconnect, optical networking, photonic computing, fiber-to-the-home (FTTH), and co-packaged optics. What’s the next step to getting silicon photonics into the hands of manufacturers and ultimately customers? Creating an end-to-end ecosystem for silicon photonics is critical to expanding GF’s photonics technologies in the market. GF is working with industry leaders in packaging, EDA tools and other critical categories for its silicon photonics portfolio, helping to create this end-to-end ecosystem enabling its customers to develop and build innovative chips. One such industry collaborator is Fabrinet, a leading provider of advanced optical packaging and precision optical, electro-mechanical, and electronic manufacturing services to original equipment manufacturers of complex products, such as optical communication components, modules and subsystems, automotive components, medical devices, industrial lasers and sensors. Fabrinet has combined GF expertise to enable high fiber count, passively aligned fiber arrays for light input and output from our silicon photonics die. This development leverages Fabrinet’s existing proven manufacturing expertise in optical components and assemblies, and co-packaged optics that eliminates the need for transceivers by packaging silicon switch circuitry with optics in the module or package. Using silicon photonics samples from GF and sharing its process technology expertise, Fabrinet has now demonstrated fiber-attach capabilities for the 90 nm silicon photonics process. This showcases the full manufacturability and viability of the GF Fotonix technology. The two companies are also collaborating to bring fiber-attach to GF’s 45 nm platform technologies, including GF Fotonix silicon photonics wafers, and anticipates those being fully tested and qualified by end of 2022. Wafers with fiber-attach developed by Fabrinet with GF support will be fully qualified to the Telcordia industry standard by end of 2022. Why is this collaboration to enable fiber-attach significant? silicon photonics has been heralded as a major breakthrough in silicon chip production. The process of getting highly advanced chips from production into products is extremely complex. This process starts with availability of the silicon, and relies on an ecosystem that provides EDA tools, design kits, software, packaging innovations, testing tools and other elements to result in a complete silicon solution. As chips based on silicon photonics start to become available in volume later this year, the industry is expecting to see significant uptake in applications that include: High-performance computing Optical quantum computing Artificial intelligence Telecommunications Networking Virtual and augmented reality Defense and aerospace Fabrinet offers a broad range of advanced optical and electro-mechanical capabilities across the entire manufacturing process, including process design and engineering, supply chain management, manufacturing, advanced packaging, integration, final assembly and testing. Fabrinet focuses on production of high complexity products in any mix and any volume. Fabrinet maintains engineering and manufacturing resources and facilities in Thailand, the United States of America, the People’s Republic of China, Israel and the United Kingdom. For more information visit: www.fabrinet.com. GF is growing its silicon photonics ecosystem and will be reporting here on this and other silicon photonics developments to accelerate time-to-market for customers. Watch for news around laser-attach, stacking chips and enabling on-chip copper connectivity and more.
Making Electronics-Photonics Integration a Reality November 9, 2022 Researchers at University of California, Santa Barbara push the limits with GF Fotonix™ by Gary Dagastine In previous posts, we’ve profiled some of the collaborations GlobalFoundries (GF) conducts with leading academic researchers through its University Partnership Program (UPP). These collaborations are important because they lead to proof points and reference designs for new applications of GF’s differentiated technologies. They complement the work of GF’s internal research and development teams. The recently introduced GF Fotonix™ platform benefits from academic research in many ways, as we’ll learn later in this blog post. GF Fotonix integrates high-performance CMOS, radio frequency (RF) and photonic components monolithically on the same chip and has the potential to disrupt many existing technologies. With GF Fotonix, customers can create innovative electro-optical solutions while taking advantage of the scale and efficiency of GF’s 300mm silicon manufacturing processes, enabling innovative packaging solutions, and the design tools needed for first-pass success. New electro-optical solutions are urgently needed because data volumes are increasing exponentially, driven by society’s digital transformation. Electronics-based solutions alone can’t keep up with the needs for more capacity, speed and energy efficiency in data centers and in the overall communications infrastructure. Photonic, or light-based, solutions offer many advantages, but getting electrons and photons to work in a highly integrated, reliable and cost-effective fashion has been difficult. Ted Letavic, Ph.D. No longer. “GF Fotonix is a very large step in systems integration, because for the first time millimeter-wave (mmWave) circuits and digital systems are integrated with photonic building blocks on the same piece of silicon. This opens up many new system and product alternatives, initially to develop next-generation optical interconnects for data centers, eventually leading to the disaggregation of the datacenter,” said Ted Letavic, GF Corporate Fellow, who leads GF’s Silicon Photonics Technology Solutions team and provides innovation and technical leadership to GF Labs. “As you can imagine, getting 300 GHz-class control electronics and photonic elements to play well together has been a difficult challenge,” he said. GF’s integration efforts have been aided by the real-world testing and benchmarking work performed by Professors James Buckwalter and Clint Schow at the University of California, Santa Barbara (UCSB), among others. Free-Form Design in Silicon Beyond its usefulness for next-generation optical interconnects, Letavic said that GF Fotonix incorporates novel photonic elements which will lead to the design of new photonic solutions directly in silicon. “A different set of our university partners is exploring the use of mathematically driven design techniques to increase photonic performance and to open up entirely new applications,” Letavic said. “These techniques are variously called inverse design, optical transform design or subwavelength design. Essentially, you decide how light needs to travel in your photonic system to perform a needed function, then you create a series of mathematical expressions – similar to back propagation in neural networks – which solve for a set of physical coordinates which are mapped to a physical shape in silicon that delivers the desired performance.” GF and its university partners have made good progress in proving the accuracy of structures built using this approach. “In fact, we’ve gotten to the point where we’re beginning to optimize our process design kits (PDKs) and other design tools to implement these ‘inverse’ techniques into our design flow.” “It’s really an entirely new way to think about how to design things in silicon, challenging traditional photonic design at its core,” Letavic said. “It moves us toward what we’re calling free-form design, where you can design any structures that you desire and as long as it complies with our ground rules, we can build it. It’s a game-changer that will open up our customers’ creative floodgates, and it’s cost-effective, too, because we don’t have to change our foundry flow.” GF is working with still other university partners to explore entirely new photonic frontiers, such as photonic computing, photonic quantum computing, and biomedical applications. “These research teams are conducting studies to answer blue-sky questions like, ‘What are the elements needed to enable photonic quantum computing in silicon?’ ‘What would a COVID-19 sensor look like if it were photonic-based? We are collaborating to understand how to use GF technologies to address these new frontiers,” he said. Longstanding Academic Partners The University of California, Santa Barbara is a hotbed of research in RF and mixed-signal technologies, and nobody better exemplifies that focus than two of GF’s partners there, Professors James Buckwalter and Clint Schow. Each has a long-standing relationship with GF, and they are partners on certain GF-related projects as well. Professor James Buckwalter, Ph.D. Buckwalter, an IEEE Fellow, researches high-frequency devices at the intersection of RF, mmWave and photonics, for front-end interfaces, signal processing and mmWave communications at 140/220 GHz. Among the technologies he has used for many years are GF’s FD-SOI (GF FDX™) and SiGe processes. “I’ve graduated more than 30 Masters and Ph.D. students over my career, all of whom have used GF’s technologies, and they take that knowledge with them to their employers,” he said. Schow, meanwhile, has more of a photonics background. An IEEE and OSA Fellow, he worked at IBM twice, where he gained deep familiarity with technologies that are now part of GF’s portfolio, such as the 90WG silicon photonics platform and SiGe BiCMOS. He also worked for a tunable laser startup in Santa Barbara, which gave him the desire to teach at UCSB. “I’ve been a believer in GF’s technologies forever,” he said. Greater than the sum of its parts Buckwalter said that in their research, they don’t look at photonic devices and electronic circuits as two separate things, but rather as elements in a toolbox that can be put together in various ways to solve problems, and GF Fotonix helps them advance that approach. Professor Clint Schow, Ph.D. “We’ve been driving toward this co-design where we break apart the photonic elements and incorporate them, for example, as small segments inside of electronic amplifiers,” he said. “We don’t treat them as separate entities, we just break everything apart, mix them up and put them back together again. Ultimately, I think in five or 10 years this hybridization of photonic and electronic elements is how design will be done in the high-frequency realm. It’s bringing two things together to get something that’s greater than the sum of the parts.” Schow said GF’s design manuals are a great help in this regard. “They’ve always been fantastic, and help us so much in figuring out what the ground rules are so that we can explore within those guidelines. They’ve helped us build things like custom heaters, which might sound like low-tech devices but are key to tuning circuits, as well as custom phase-shifters to optimize performance. From the standpoint of understanding the physical design space as we pursue hybrid designs, it’s been a great experience,” he said. Low-power coherent optical communications A good example of their hybrid approach is a project the two are conducting which involves broadband waveform generation and detection for the use of coherent optics in data centers. Coherent optics technology is seen as a way to dramatically increase the amount of data light can carry through a fiberoptic cable in a data center, by modulating (i.e., changing) the amplitude and phase of the light, and by transmitting it across two different polarizations. It involves digital signal processing at both the transmitter and receiver, and the researchers are using GF Fotonix for this work. “While coherent optics is already used in long-haul data transmission, that requires a lot of energy. What we’re trying to do is to make it low-powered enough to be used in short-reach communications links in data centers, to improve networking architectures,” Schow said. “But building complete coherent link subsystems is really difficult. On the electronics side you need very efficient high-swing drivers integrated with photonic modulators to generate signaling waveforms, and then on the receiver side, you need a full photonic hybrid to separate the waveforms and to interface with high speed electronics,” he said. “So, there are very highly integrated circuits on both sides; very highly integrated photonic integrated circuits in the middle which must be designed to work with the receiver/transmitter subsystems; and they must also function as the full link which brings everything together. “This forces us as faculty advisors, and also our students, to have a broad view. I think it produces students who are well-equipped to go out there and make a big difference in the industry, and of course, all of them will be familiar with the GF technologies that make it possible,” Schow said. Looking forward Buckwalter said that silicon photonics integrated with mmWave electronics will play an increasingly important role in many areas going forward. One is the relentless march of mmWave wireless communications to frequencies of 200 GHz-300 GHz and above. “There’s a gulf between the upper reaches of the mmWave spectrum and the wavelengths of infrared and visible light. Silicon photonics is going to play a very important role here because the losses become so great at these frequencies that there will need to be some combination of photonics and electronics as a low-loss way to send information,” he said. “And while there are going to be a lot of interesting applications for mmWave-enabled photonics, it will work the other way around, too, with photonics enabling mmWave. For example, for the cellular networks of the future we’re going to need to show higher and higher dynamic range over extremely wide bandwidths, and electronics alone can’t ever meet those challenges,” Buckwalter said. Schow said the integration of electronics and photonics is inevitable, whether it is a hybrid type of integration where things are positioned close to one another and densely packaged together, or a monolithic approach. “The incumbent way of doing things never wants to die. But I think we’re seeing that play out right now,” he said.
GlobalFoundries Reports Third Quarter 2022 Financial Results November 8, 2022 Record Revenue, Gross Profit, and Net Income MALTA, N.Y., November 8, 2022 (GLOBE NEWSWIRE) — GlobalFoundries Inc. (GF) (Nasdaq: GFS) today announced preliminary financial results for the third quarter ended September 30, 2022. Key Third Quarter Financial Highlights Record revenue of $2.1 billion, up 22% year-over-year. Record gross margin of 29.4% and adjusted gross margin of 29.9%. Record operating margin of 17.2% and adjusted operating margin of 18.8%. Record net income of $336 million and adjusted net income of $368 million. Record adjusted EBITDA of $793 million. Cash, cash equivalents and marketable securities of $3.5 billion. “In the third quarter, the GF team continued to execute on its commitments to customers and shareholders despite ongoing macroeconomic and geopolitical challenges,” said CEO Dr. Thomas Caulfield. “300mm-equivalent wafer shipments of 637 thousand was a record for GF, an increase of 5% year-over-year. Our revenue grew 22% year-over-year, and we delivered record gross, operating, and net profits, making significant progress towards our long-term financial model. We remain on track to deliver a strong year of growth and profitability.” Recent Business Highlights: GF qualified a proprietary automotive eNVM product for one of the largest automotive MCU suppliers in the industry. The qualification allows GF to ship this product from both the Dresden and Singapore facilities, establishing a high-volume, secure supply chain for the automotive industry. U.S. Senator Patrick Leahy and GF announced the award of $30 million in federal funding to advance the development and production of next-generation gallium nitride (GaN) on silicon semiconductors at GF’s facility in Essex Junction, VT. GF announced that the company has been added to the Philadelphia Stock Exchange Semiconductor Index (SOX) effective Monday, September 19, 2022. Unaudited Summary Quarterly Results (in millions USD, except per share amounts and wafer shipments)1 Year-over-year Sequential Q3’22 Q2’22 Q3’21 Q3’22 vs Q3’21 Q3’22 vs Q2’22 Net revenue $ 2,074 $ 1,993 $ 1,700 $ 374 22 % $ 81 4 % Gross profit 610 $ 538 $ 300 $ 310 103 % $ 72 13 % Gross margin 29.4 % 27.0 % 17.6 % +1,180bps +240bps Adjusted gross profit(1) $ 621 $ 559 $ 306 $ 315 103 % $ 62 11 % Adjusted gross margin 29.9 % 28.0 % 18.0 % +1,190bps +190bps Operating profit $ 357 $ 297 $ 52 $ 305 587 % $ 60 20 % Operating margin 17.2 % 14.9 % 3.1 % +1,410bps +230bps Adjusted operating profit(1) $ 389 $ 350 $ 81 $ 308 380 % $ 39 11 % Adjusted operating margin 18.8 % 17.6 % 4.8 % +1,400bps +120bps Net income $ 336 $ 264 $ 5 $ 331 6,620 % $ 72 27 % Net income margin 16.2 % 13.2 % 0.3 % +1,590bps +300bps Adjusted net income(1) $ 368 $ 317 $ 34 $ 334 982 % $ 51 16 % Adjusted net income margin 17.7 % 15.9 % 2.0 % +1,570bps +180bps Diluted earnings per share (“EPS”) $ 0.61 $ 0.48 $ 0.01 $ 0.60 6,000 % $ 0.13 27 % Adjusted diluted earnings per share(1) $ 0.67 $ 0.58 $ 0.07 $ 0.60 857 % $ 0.09 16 % Adjusted EBITDA(1)(2) $ 793 $ 784 $ 505 $ 288 57 % $ 9 1 % Adjusted EBITDA margin 38.2 % 39.3 % 29.7 % +850bps (110)bps Cash from operations $ 679 $ 609 $ 1,109 $ (430 ) (39 )% $ 70 11 % Wafer shipments (300mm equivalent) (in thousands) 637 630 609 28 5 % 7 1 % (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) 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 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 and litigation settlement. Summary of Fourth Quarter 2022 Outlook (unaudited in millions USD, except per share amounts)(3) IFRS Share-based compensation Non-IFRS Adjusted Net revenue $2,050 – $2,100 — — Gross Profit $580 – $619 $11 – $15 $595 – $630 Gross Margin (mid-point) 28.9 % 29.5 % Operating Profit $323 – $390 $30 – $42 $365 – $420 Operating Margin (mid-point) 17.2 % 18.9 % Gain on sale (EFK transaction)(4) $350 – $400 $350 – $400 Net Income(5) $645 – $770 $30 – $42 $687 – $800 Net Income Margin (mid-point) 34.1 % 35.8 % Diluted EPS $1.16 – $1.39 $1.24 – $1.44 Adjusted EBITDA(6) NA $770 – $840 Adj. EBITDA Margin (mid-point) 38.8 % (3) 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 Fourth 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. (4) Estimated gain on sale of East Fishkill (“EFK”) facility in December 2022. (5) Includes one-time estimated gain on sale of EFK facility in December 2022. (6) Reflects change to adjusted EBITDA definition discussed in more detail elsewhere in this release. Unaudited Consolidated Statements of Operations Three Months Ended (in millions USD, except for per share amounts) September 30, 2022 September 30, 2021 Net revenue $ 2,074 $ 1,700 Cost of revenue 1,464 1,400 Gross profit $ 610 $ 300 Operating expenses: Research and development $ 124 $ 114 Sales, marketing, general and administrative 129 134 Total operating expenses $ 253 $ 248 Operating profit 357 52 Finance expense, net $ (11 ) $ (27 ) Other income 9 2 Income tax expense (19 ) (22 ) Net income $ 336 $ 5 Attributable to: Shareholders of GlobalFoundries $ 337 $ 6 Non-controlling interest $ (1 ) $ (1 ) Earnings per share : Basic $ 0.62 $ 0.01 Diluted $ 0.61 $ 0.01 Shares used in earnings per share calculation Basic 543 500 Diluted 553 512 Unaudited Consolidated Statements of Financial Position (in millions USD) September 30, 2022 December 31, 2021 Assets: Cash and cash equivalents $ 2,541 $ 2,939 Receivables, prepayments and other 1,169 1,231 Marketable securities 567 — Inventories 1,342 1,121 Current assets $ 5,619 $ 5,291 Deferred tax assets $ 302 $ 353 Property, plant, and equipment, net 10,218 8,713 Marketable securities 365 — Other assets 704 671 Noncurrent assets $ 11,589 $ 9,737 Total assets $ 17,208 $ 15,028 Liabilities and equity: Current portion of long-term debt $ 244 $ 297 Other current liabilities 3,628 2,866 Current liabilities $ 3,872 $ 3,163 Noncurrent portion of long-term debt $ 1,972 $ 1,716 Other liabilities 2,283 2,116 Noncurrent liabilities $ 4,255 $ 3,832 Shareholders’ equity: Common stock/additional paid-in capital $ 23,777 $ 23,498 Accumulated deficit (14,689 ) (15,469 ) Accumulated other comprehensive (loss) (48 ) (54 ) Non-controlling interest 41 58 Total liabilities and equity $ 17,208 $ 15,028 Unaudited Consolidated Statements of Cash Flows Three Months Ended (in millions USD) September 30, 2022 September 30, 2021 Cash flows from operating activities: Net income $ 336 $ 5 Depreciation and amortization 395 415 Finance expense, net and other(1) 6 27 Deferred income taxes 11 20 Other non-cash operating activities (32 ) 2 Net change in working capital (37 ) 640 Net cash provided by operating activities $ 679 $ 1,109 Cash flows from investing activities: Purchases of property, plant, equipment, and intangible assets $ (613 ) $ (392 ) Other investing activities (151 ) 30 Net cash used in investing activities $ (764 ) $ (362 ) Cash flows from financing activities: Repayments of shareholder loan $ — $ (442 ) Proceeds (repayment) of debt, net 95 (87 ) Other financing activities 62 4 Net cash provided by (used in) financing activities $ 157 $ (525 ) Effect of exchange rate changes $ (5 ) $ (8 ) Net change in cash and cash equivalents $ 67 $ 214 Cash and cash equivalents at the beginning of the period $ 2,474 805 Cash and cash equivalents at the end of the period $ 2,541 $ 1,019 (1) Finance expense, net and other has been adjusted to include interest and taxes paid that were previously included in “Other non-cash operating activities.” Prior period amounts have been adjusted accordingly. Unaudited Reconciliation of IFRS to Adjusted Non-IFRS Three Months Ended (in millions USD) September 30, 2022 June 30, 2022 September 30, 2021 Gross profit $ 610 $ 538 $ 300 Gross profit margin 29.4 % 27.0 % 17.6 % Share based compensation $ 11 $ 21 $ 6 Adjusted gross profit $ 621 $ 559 $ 306 Adjusted gross margin 29.9 % 28.0 % 18.0 % Operating profit $ 357 $ 297 $ 52 Operating profit margin 17.2 % 14.9 % 3.1 % Share based compensation $ 32 $ 53 $ 29 Adjusted operating profit $ 389 $ 350 $ 81 Adjusted operating profit margin 18.8 % 17.6 % 4.8 % Net income $ 336 $ 264 $ 5 Net income margin 16.2 % 13.2 % 0.3 % Share based compensation $ 32 $ 53 $ 29 Adjusted net income $ 368 $ 317 $ 34 Adjusted net income margin 17.7 % 15.9 % 2.0 % Diluted earnings per share $ 0.61 $ 0.48 $ 0.01 Share based compensation $ 0.06 $ 0.10 $ 0.06 Adjusted diluted earnings per share $ 0.67 $ 0.58 $ 0.07 Unaudited Reconciliation of Net Income to Adjusted EBITDA Three Months Ended (in millions USD) September 30, 2022 June 30, 2022 September 30, 2021 Net income for the period $ 336 $ 264 $ 5 Depreciation and amortization $ 395 $ 411 $ 415 Finance expense $ 28 $ 26 $ 28 Finance income $ (17 ) NA NA Income tax expense $ 19 $ 30 $ 22 Share based compensation $ 32 $ 53 $ 29 Restructuring and corporate severance programs $ — $ — $ 2 (Gains) on transactions, legal settlements and transaction expenses $ — $ — $ 4 Adjusted EBITDA(1) $ 793 $ 784 $ 505 Adjusted EBITDA margins 38.2 % 39.3 % 29.7 % (1) 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. We define adjusted net income (loss) as net income (loss) adjusted for share-based compensation expense. 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 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, November 8, 2022 at 8:30 a.m. U.S. Eastern Time (ET) to review the Third Quarter 2022 results in detail. Interested parties may join the scheduled conference call by registering at https://register.vevent.com/register/BI4e00c8c0b4a74f61af4bcda1515f2ea0 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; 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]
Reflecting on GF IPO October 28, 2022 One year ago today, GF became a publicly traded company under the stock symbol “GFS.” This milestone in GF’s journey reflected our global team’s dedication, ingenuity and hard work. The GF team has built a company that has grown to become a vital player in the semiconductor industry. While we are proud of what we accomplished, we are just as proud of how we did it. Our commitment to enabling a better-connected world for our customers, partners, communities and each other is stronger than it’s ever been. GF is changing the industry that’s changing the world.
$30 Million in Federal Funding to Advance Innovation and Production of Next-Generation GaN Chips at GlobalFoundries Fab in Vermont October 17, 2022 A world leader in RF semiconductor manufacturing, GF’s Vermont Fab moves closer to large-scale production of next-generation gallium nitride chips ESSEX JUNCTION, Vt., October 17, 2022 — U.S. Senator Patrick Leahy and GlobalFoundries (Nasdaq: GFS) (GF), a global leader in feature-rich semiconductor manufacturing, today announced the award of $30 million in federal funding to advance the development and production of next-generation gallium nitride (GaN) on silicon semiconductors at GF’s facility in Essex Junction, Vermont. With their unique ability to handle significant heat and power levels, GaN semiconductors are positioned to enable game-changing performance and efficiency in applications including 5G and 6G smartphones, RF wireless infrastructure, electric vehicles, power grids, solar energy, and other technologies. The announcement was made at an event today at GF’s Fab attended by Sen. Leahy, GF President and CEO Dr. Thomas Caulfield, GF Vermont Fab Vice President and General Manager Ken McAvey, Greater Burlington Industrial Corporation President Frank Cioffi, GF Fab team members, and other guests. The $30 million federal funding, secured by Sen. Leahy as an appropriation in the Consolidated Appropriations Act for Fiscal Year 2022, will enable GF to purchase tools and extend development and implementation of 200mm GaN wafer manufacturing. The incorporation of scaled GaN manufacturing into the Fab’s capabilities furthers the facility’s longstanding global leadership in RF semiconductor technology, and positions GF for leadership in making chips for high-power applications including electric vehicles, industrial motors, and energy applications. “Senator Leahy’s leadership and dedication have been instrumental to the growth and success of semiconductor manufacturing in Vermont,” said Dr. Caulfield. “On behalf of the entire GF team, I thank Senator Leahy for his steadfast support of GF throughout his many years in office. As seen with today’s announcement, he has been a champion of putting this facility on the global forefront of semiconductor manufacturing. With this new federal funding, and the potential for further support in the 2023 federal budget, GF is well-positioned to become a global leader in GaN chip manufacturing—right here in Vermont.” “Chips used all around the world are made right here in Essex Junction by this dedicated workforce,” said Senator Leahy. “I am extremely proud of that, and it’s something all Vermonters and Americans can take pride in. This funding is an investment in U.S. leadership in improved technology for chips that connect everything around us and power our handheld devices—with GlobalFoundries and Vermonters leading the way.” This Other Transaction Agreement (OTA) was entered into by the Defense Microelectronics Activity via the Trusted Access Program Office (TAPO) of the U.S. Department of Defense. TAPO’s primary mission is to procure advanced semiconductors for the Departments most critical and sensitive weapons systems platforms. TAPO has been supporting dual use (both civilian and military applications) GaN on silicon development efforts since 2019 as GaN provides a stable semiconductor suitable in high power, high frequency devices the DoD needs to maintain technology advantage for the United States. This current development phase plans to leverage previous TAPO successes and continue maturing this dual use technology. “GlobalFoundries has been a critical partner to the Trusted Access Program Office, enabling semiconductor assurance (Trust) to advanced semiconductor technologies for the Department’s most advanced weapon systems platforms. This engagement is just one step the DoD is taking to ensure the U.S. has continued access to advanced microelectronics technologies such as gallium nitride,” said DMEA Director Dr. Nicholas Martin. This $30 million agreement is the latest federal investment to support GaN at GF’s Vermont Fab. In fiscal years 2020 and 2021, Sen. Leahy secured a total of $10 million for research and development related to advancing GaN technology at the facility, paving the way for this new award. GF’s facility in Essex Junction, Vermont, near Burlington, was among the first major semiconductor manufacturing sites in the United States. Today nearly 2,000 GF employees work at the site, with a manufacturing capacity of more than 600,000 wafers per year. Built on GF’s differentiated technologies, these GF-made chips are used in smartphones, automobiles, and communications infrastructure applications around the world. The Fab is a 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 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: Michael Mullaney [email protected] Gina DeRossi [email protected]
GlobalFoundries Announces Conference Call to Review Third Quarter 2022 Financial Results October 3, 2022 MALTA, N.Y., October 3, 2022 – GlobalFoundries (NASDAQ: GFS) today announced that it will host a conference call on Tuesday, November 8, 2022 at 8:30 a.m. ET following the release of the company’s third quarter 2022 financial results. Conference Call and Webcast Information The company will host a conference call with the financial community on Tuesday, November 8, 2022 at 8:30 a.m. ET. Interested parties may join the scheduled conference call by registering here. The company’s financial results and a webcast of the conference call will be available on GF’s Investor Relations website at https://investors.gf.com. About GlobalFoundries GlobalFoundries Inc. (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. For further information, please contact: [email protected]
