GlobalFoundries and Qualcomm Announce Extension of Long-term Agreement to Secure U.S. Supply through 2028

Mul­ti-bil­li­on dol­lar reve­nue agree­ment incre­a­ses glo­bal sup­ply capa­ci­ty reser­va­ti­on to cover mul­ti­ple technologies

Washing­ton D.C., August 8, 2022 – Fol­lowing the recent pas­sa­ge of the U.S. CHIPS and Sci­ence Act last week, Glo­bal­Found­ries (Nasdaq: GFS) (GF), a glo­bal lea­der in fea­ture-rich semi­con­duc­tor manu­fac­tu­ring and Qual­comm Tech­no­lo­gies, Inc. today announ­ced they are more than doub­ling their exis­ting stra­te­gic glo­bal long-term semi­con­duc­tor manu­fac­tu­ring agree­ment pre­vious­ly ent­e­red into by GF’s and Qualcomm’s respec­ti­ve sub­si­dia­ries. Today’s announ­ce­ment secu­res wafer sup­ply and com­mit­ments to sup­port U.S.-based manu­fac­tu­ring through capa­ci­ty expan­si­on at GF’s most advan­ced semi­con­duc­tor manu­fac­tu­ring faci­li­ty, in Mal­ta, New York.

The announ­ce­ment was made in Washing­ton D.C. at a CEO Sum­mit co-hos­ted by GF, Ford Motor Com­pa­ny, and App­lied Mate­ri­als, which inclu­ded Natio­nal Eco­no­mic Coun­cil Direc­tor Bri­an Deese, Under Secreta­ry of Defen­se for Acqui­si­ti­on & Sus­taina­bi­li­ty Dr. Wil­liam LaPlan­te, and Natio­nal Secu­ri­ty Coun­cil Seni­or Direc­tor for Tech­no­lo­gy & Natio­nal Secu­ri­ty, Tarun Chhabra unders­co­ring the impor­t­ance of domestic manu­fac­tu­ring to natio­nal and eco­no­mic secu­ri­ty. The Sum­mit inclu­ded CEOs and seni­or lea­ders from across the semi­con­duc­tor sup­ply chain from tool and wafer manu­fac­tu­rers to key sup­pliers to end users of chips manu­fac­tu­red in the U.S.

GF has been manu­fac­tu­ring Qual­comm Tech­no­lo­gies’ fea­ture rich, high-per­for­mance chips for many years, reaching across its glo­bal foot­print. In 2021, Qual­comm Glo­bal Tra­ding Pte. Ltd (QGT), a sub­si­dia­ry of Qual­comm Tech­no­lo­gies, was one of GF’s first cus­to­mers to secu­re their sup­ply with a long-term agree­ment covering mul­ti­ple geo­gra­phies and tech­no­lo­gies. That agree­ment secu­red 22FDX™ capa­ci­ty at GF’s Dres­den faci­li­ty and will now inclu­de capa­ci­ty at GF’s recent­ly announ­ced faci­li­ty in Crol­les, Fran­ce, making QGT an anchor cus­to­mer in GF’s lea­ding Euro­pean pro­prie­ta­ry tech­no­lo­gy. QGT has also secu­red capa­ci­ty in GF’s mar­ket lea­ding 8SW radio-fre­quen­cy sili­con-on-insu­la­tor (RFSOI) tech­no­lo­gies for Sub 6GHz 5G front-end modu­le (FEM) which will be pri­ma­ri­ly manu­fac­tu­red in GF’s Sin­g­a­po­re faci­li­ties, whe­re site expan­si­on plans are well under­way with full ramp expec­ted in ear­ly 2023.

Today’s announ­ce­ment spe­ci­fi­cal­ly extends QGT’s U.S. based col­la­bo­ra­ti­on with GF in Fin­FET for 5G trans­cei­vers, Wi-Fi, Auto­mo­ti­ve and IoT con­nec­ti­vi­ty. GF’s Fin­FET plat­forms pro­vi­de a best-in-class com­bi­na­ti­on of per­for­mance, power and area that are well-sui­ted for high-end Mobi­le, Auto­mo­ti­ve and IoT applications.

This is ter­ri­fic news for Glo­bal­Found­ries, Qual­comm Tech­no­lo­gies and for upsta­te New York. Just days after we pas­sed my his­to­ric, bipar­ti­san CHIPS & Sci­ence bill, we can alrea­dy see the semi­con­duc­tor indus­try reinves­ting in the United Sta­tes. This deal to 2028 pro­ves what we have always known – that the indus­try will grow here when we are com­pe­ti­ti­ve with Asia and Euro­pe. With major new federal incen­ti­ves for micro­chip manu­fac­tu­ring in the U.S., I look for­ward to many more announ­ce­ments like this to come,” said Sena­te Majo­ri­ty Lea­der Chuck Schumer

With acce­le­ra­ting demand for 5G, Auto­mo­ti­ve and IoT app­li­ca­ti­ons, a robust sup­ply chain is cri­ti­cal for ensu­ring inno­va­ti­on in the­se are­as remains unin­ter­rup­ted,” said Dr. Roawen Chen, Seni­or Vice Pre­si­dent and Chief Sup­ply Chain and Ope­ra­ti­ons Offi­cer, Qual­comm Tech­no­lo­gies, Inc. “Our con­ti­nued col­la­bo­ra­ti­on with GF hel­ps us to expand the next genera­ti­on of wire­less inno­va­ti­on as we move toward a world whe­re ever­yo­ne and ever­ything can be intel­li­gent­ly connected.”

GF’s glo­bal manu­fac­tu­ring foot­print enab­les us to part­ner with our cus­to­mers to meet their capa­ci­ty needs, whe­re they need it,” said Dr. Tho­mas Caul­field, pre­si­dent and CEO of GF. “Our col­la­bo­ra­ti­on with Qual­comm Tech­no­lo­gies deli­vers dif­fe­ren­tia­ti­on and inno­va­ti­on in mobi­le and IoT span­ning three con­ti­nents, and this long-term agree­ment exten­si­on pro­vi­des Qual­comm Tech­no­lo­gies with addi­tio­nal U.S. based manu­fac­tu­ring for a more resi­li­ent sup­ply chain.”

Today’s announ­ce­ment from our CEO Sum­mit in Washing­ton, D.C. secu­res Qual­comm Tech­no­lo­gies as a key long-term cus­to­mer through 2028 in our most advan­ced fab in upsta­te New York, which tog­e­ther with U.S. CHIPS and sta­te fun­ding, will fuel expan­ding GF’s U.S. manu­fac­tu­ring foot­print. We applaud the bipar­ti­san efforts and lea­ders­hip demons­tra­ted by Sena­tor Schu­mer and the incredi­ble sup­port of Com­mer­ce Secreta­ry Rai­mondo to bring back chip manu­fac­tu­ring to Ame­ri­ca,” added Dr. Caulfield.

The glo­bal demand for semi­con­duc­tors is gro­wing at an unpre­ce­den­ted rate, and GF is respon­ding to this growth 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. Today’s announ­ce­ment with Qual­comm Tech­no­lo­gies is an important step con­sis­tent with this col­la­bo­ra­ti­ve model.

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.

For­ward-Loo­king Statements

This news release may con­tain for­ward-loo­king state­ments, which invol­ve risks and uncer­tain­ties. Rea­ders are cau­tio­ned not to place undue reli­an­ce on any of the­se for­ward-loo­king state­ments. The­se for­ward-loo­king state­ments speak only as of the date here­of. GF under­ta­kes no obli­ga­ti­on to update any of the­se for­ward-loo­king state­ments to reflect events or cir­cum­s­tan­ces after the date of this news release or to reflect actu­al out­co­mes, unless requi­red by law.

About Qual­comm

Qual­comm is the world’s lea­ding wire­less tech­no­lo­gy inno­va­tor and the dri­ving for­ce behind the deve­lo­p­ment, launch, and expan­si­on of 5G. When we con­nec­ted the pho­ne to the inter­net, the mobi­le revo­lu­ti­on was born. Today, our foun­da­tio­nal tech­no­lo­gies enab­le the mobi­le eco­sys­tem and are found in every 3G, 4G and 5G smart­pho­ne. We bring the bene­fits of mobi­le to new indus­tries, inclu­ding auto­mo­ti­ve, the inter­net of things, and com­pu­ting, and are lea­ding the way to a world whe­re ever­ything and ever­yo­ne can com­mu­ni­ca­te and inter­act seamlessly.

Qual­comm Incor­po­ra­ted inclu­des our licen­sing busi­ness, QTL, and the vast majo­ri­ty of our patent port­fo­lio. Qual­comm Tech­no­lo­gies, Inc., a sub­si­dia­ry of Qual­comm Incor­po­ra­ted, ope­ra­tes, along with its sub­si­dia­ries, sub­stan­ti­al­ly all of our engi­nee­ring, rese­arch and deve­lo­p­ment func­tions, and sub­stan­ti­al­ly all of our pro­ducts and ser­vices busi­nes­ses, inclu­ding our QCT semi­con­duc­tor business.