GlobalFoundries and U.S. Department of Commerce Announce Agreement to Award CHIPS Act Funding for Critical Chip Manufacturing

November 20, 2024

Up to $1.5 billion from CHIPS and Science Act to support GF's New York expansion plans and Vermont facility upgrades

Additional $550 million from New York State confirmed

MALTA, NY, November 20, 2024 GlobalFoundries (Nasdaq: GFS) (GF) and the U.S. Department of Commerce announced direct funding of up to $1.5 billion to GF through the CHIPS and Science Act . This award follows the preliminary memorandum of understanding previously signed and announced in February 2024 and will enable GF to expand its critical chip manufacturing and technology development in the United States, strengthening supply chains and supporting its customers across a range of vital end markets including automotive, smart mobile. devices, IoT, data centers, as well as aerospace and defense.

The idea to bolster U.S. semiconductor manufacturing has been in the works for more than five years. With bipartisan support, that idea evolved into the CHIPS and Science Act, said Dr. Thomas Caulfield, GF president and CEO. GF's critical chips are at the heart of the U.S. economy, supply chain and national security. We greatly appreciate the support and funding from the U.S. government and the states of New York and Vermont, which we will use to ensure our customers have the American-made chips they need to succeed and win.

The GF CHIPS and Science Act Prize will support three projects:

Expansion of GF's existing manufacturing facility in Malta and New York by adding critical technologies already in production at GF's facilities in Singapore and Germany, to enable a safe and reliable supply of essential chips manufactured in the country for the American automobile industry. Modernizing and upgrading GF's existing facility in Essex Junction, Vermont, to increase production capacity and create one of the world's largest facilities capable of high-volume semiconductor manufacturing at Next-generation gallium nitride (GaN) for use in electric vehicles, data centers, IoT, smartphones and other critical applications. In line with market conditions and customer demand, construction of a new state-of-the-art manufacturing facility on GF's Malta, New York campus to meet expected demand for critical U.S.-made chips in a wide range of markets and applications, including automotive, AI in the data center and edge, and aerospace and defense.

The two New York-based projects are expected to triple the existing capacity of GF's Malta campus over the next ten years, in line with expected market requirements and customer demand. Construction of the new factory will leverage the existing infrastructure and ecosystem of GF sites, enabling a rapid and efficient move from construction to production.

In total, these projects represent more than $13 billion in investment over the next 10 years at GF's two U.S. sites. This investment includes the $1.5 billion CHIPS and Science Act award, more than $550 million in support from New York State's Green CHIPS program, and funding and support from Vermont, partners in the GF ecosystem and key strategic customers, as well as other incentives.

Together, these investments are expected to create nearly 1,000 direct manufacturing jobs and more than 9,000 construction jobs over the life of these projects.

The GF factories in New York and Vermont are both Trusted Foundry accredited and manufacture secure chips in partnership with the U.S. government.

As part of its CHIPS and Science Act award, aimed at attracting and cultivating a pipeline of semiconductor talent in New York and Vermont, GF will continue to invest and develop new workforce development efforts. work including curriculum development, internships and apprenticeships, K-12 STEM programs. awareness, as well as additional education and training programs.

Consistent with GF's long-standing commitment to our communities and the environment, GF's design and construction plans for its expansions and modernizations in New York and Vermont will reflect the company's sustainability goals for its operations future.

About GF

GlobalFoundries (GF) is a leading manufacturer of essential semiconductors that the world depends on to live, work and connect. We innovate and collaborate with our customers to deliver more energy efficient and higher performance products for automotive, smart mobile devices, Internet of Things, communications infrastructure and other high-growth markets. With our global manufacturing presence spanning the United States, Europe and Asia, GF is a trusted and reliable source for customers around the world. Every day, our talented and diverse team delivers results with a relentless focus on safety, longevity and sustainability. For more information, visit www.gf.com.

GlobalFoundries Inc., GF, GlobalFoundries, the GF logos and other GF marks are trademarks of GlobalFoundries Inc. or its subsidiaries. All other trademarks are the property of their respective owners.

Forward-looking information

This press release includes forward-looking statements that reflect our current expectations and our view of future events. These forward-looking statements are made pursuant to the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and include, without limitation, statements regarding our financial prospects, future directions, product development, our 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, could, might, intend, must, outlook, plan, and variations of these terms or the negative of these terms and similar expressions are intended to identify such forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are subject to a wide variety of known and unknown risks and uncertainties. Any inaccuracies in our assumptions and estimates could affect the achievement of the expectations or forecasts contained in these forward-looking statements. For example, our business could be affected by geopolitical conditions such as current political and trade tensions with China and the wars in Ukraine and Israel; domestic political developments, particularly with respect to the new U.S. presidential administration; the market for our products may develop or recover more slowly than expected or than in the past; we may not be able to realize the full benefits of our restructuring plan; our operating results may fluctuate more than expected; there may be significant fluctuations in our results of operations and cash flows related to our revenue recognition or otherwise; a network or data security incident that allows unauthorized access to our network or data or our customers' data could result in system interruption, loss of data or harm our reputation; we may experience interruptions or performance issues associated with our technology, including service outage; global economic conditions could deteriorate, including due to rising interest rates, higher inflation and any potential recession; and our expected results and planned expansions and operations may not proceed as planned if the funding we anticipate receiving (including awards under the CHIPS and Science Act and New York State's Green CHIPS program ) is delayed or held back for any reason. It is not possible for us to predict all risks, nor to assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially. of those contained in any document. forward-looking statements we may make. Additionally, we operate in a competitive and rapidly changing market, and new risks may emerge from time to time. These statements are based on our historical performance and our current plans, estimates and projections in light of information currently available to us, and you should therefore not place undue reliance on them.

Although we believe that the expectations reflected in our forward-looking statements are reasonable, we can give no assurance that future results, levels of activity, performance or events and circumstances described in the forward-looking statements will be achieved or occur. Furthermore, neither we nor any other person assumes responsibility for the accuracy and completeness of these statements. Except as required by the federal securities laws, we undertake no obligation to update any forward-looking information or statement as a result of new information, subsequent events or any other circumstances after the date hereof. , or to reflect the occurrence of unforeseen events. . Investors are encouraged to consider in detail the risks and uncertainties discussed in our 2023 Annual Report on Form 20-F, Current Reports on Form 6-K and other reports filed with the Securities and Exchange Commission.

Media Contact:

Michael Mullaney[email protected]

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