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

Mul짯ti-bil짯li짯on dol짯lar reve짯nue agree짯ment increa짯ses glo짯bal sup짯p짯ly capa짯ci짯ty reser짯va짯ti짯on to cover mul짯ti짯ple technologies

Washing짯ton D.C., August 8, 2022  Fol짯lo짯wing the recent pas짯sa짯ge of the U.S. CHIPS and Sci짯ence Act last week, Glo짯bal짯Found짯ries (Nasdaq: GFS) (GF), a glo짯bal lea짯der in fea짯ture-rich semi짯con짯duc짯tor manu짯fac짯tu짯ring and Qual짯comm Tech짯no짯lo짯gies, Inc. today announ짯ced they are more than doubling their exis짯ting stra짯te짯gic glo짯bal long-term semi짯con짯duc짯tor manu짯fac짯tu짯ring agree짯ment pre짯vious짯ly ente짯red into by GF셲 and Qualcomm셲 respec짯ti짯ve sub짯si짯dia짯ries. Today셲 announce짯ment secu짯res wafer sup짯p짯ly and com짯mit짯ments to sup짯port U.S.-based manu짯fac짯tu짯ring through capa짯ci짯ty expan짯si짯on at GF셲 most advan짯ced semi짯con짯duc짯tor manu짯fac짯tu짯ring faci짯li짯ty, in Mal짯ta, New York.

The announce짯ment was made in Washing짯ton D.C. at a CEO Sum짯mit co-hos짯ted by GF, Ford Motor Com짯pa짯ny, and Appli짯ed Mate짯ri짯als, which included Natio짯nal Eco짯no짯mic Coun짯cil Direc짯tor Bri짯an Deese, Under Secre짯ta짯ry of Defen짯se for Acqui짯si짯ti짯on & Sus짯taina짯bi짯li짯ty Dr. Wil짯liam LaPlan짯te, and Natio짯nal Secu짯ri짯ty Coun짯cil Seni짯or Direc짯tor for Tech짯no짯lo짯gy & Natio짯nal Secu짯ri짯ty, Tarun Chh짯abra unders짯coring the importance of dome짯stic manu짯fac짯tu짯ring to natio짯nal and eco짯no짯mic secu짯ri짯ty. The Sum짯mit included CEOs and seni짯or lea짯ders from across the semi짯con짯duc짯tor sup짯p짯ly chain from tool and wafer manu짯fac짯tu짯r짯ers to key sup짯pli짯ers to end users of chips manu짯fac짯tu짯red in the U.S.

GF has been manu짯fac짯tu짯ring Qual짯comm Tech짯no짯lo짯gies fea짯ture rich, high-per짯for짯mance chips for many years, rea짯ching across its glo짯bal foot짯print. In 2021, Qual짯comm Glo짯bal Tra짯ding Pte. Ltd (QGT), a sub짯si짯dia짯ry of Qual짯comm Tech짯no짯lo짯gies, was one of GF셲 first cus짯to짯mers to secu짯re their sup짯p짯ly with a long-term agree짯ment cove짯ring mul짯ti짯ple geo짯gra짯phies and tech짯no짯lo짯gies. That agree짯ment secu짯red 22FDX꽓 capa짯ci짯ty at GF셲 Dres짯den faci짯li짯ty and will now include capa짯ci짯ty at GF셲 recent짯ly announ짯ced faci짯li짯ty in Crol짯les, France, making QGT an anchor cus짯to짯mer in GF셲 lea짯ding Euro짯pean pro짯prie짯ta짯ry tech짯no짯lo짯gy. QGT has also secu짯red capa짯ci짯ty in GF셲 mar짯ket lea짯ding 8SW radio-fre짯quen짯cy sili짯con-on-insu짯la짯tor (RFSOI) tech짯no짯lo짯gies for Sub 6GHz 5G front-end modu짯le (FEM) which will be pri짯ma짯ri짯ly manu짯fac짯tu짯red in GF셲 Sin짯ga짯po짯re faci짯li짯ties, whe짯re site expan짯si짯on plans are well under짯way with full ramp expec짯ted in ear짯ly 2023.

Today셲 announce짯ment spe짯ci짯fi짯cal짯ly extends QGT셲 U.S. based col짯la짯bo짯ra짯ti짯on with GF in Fin짯FET for 5G trans짯cei짯vers, Wi-Fi, Auto짯mo짯ti짯ve and IoT con짯nec짯ti짯vi짯ty. GF셲 Fin짯FET plat짯forms pro짯vi짯de a best-in-class com짯bi짯na짯ti짯on of per짯for짯mance, power and area that are well-sui짯ted for high-end Mobi짯le, Auto짯mo짯ti짯ve and IoT applications.

This is ter짯ri짯fic news for Glo짯bal짯Found짯ries, Qual짯comm Tech짯no짯lo짯gies and for upsta짯te New York. Just days after we pas짯sed my his짯to짯ric, bipar짯ti짯san CHIPS & Sci짯ence bill, we can alre짯a짯dy see the semi짯con짯duc짯tor indus짯try reinves짯t짯ing in the United Sta짯tes. This deal to 2028 pro짯ves what we have always known that the indus짯try will grow here when we are com짯pe짯ti짯ti짯ve with Asia and Euro짯pe. With major new fede짯ral incen짯ti짯ves for micro짯chip manu짯fac짯tu짯ring in the U.S., I look for짯ward to many more announce짯ments like this to come, said Sena짯te Majo짯ri짯ty Lea짯der Chuck Schumer

With acce짯le짯ra짯ting demand for 5G, Auto짯mo짯ti짯ve and IoT appli짯ca짯ti짯ons, a robust sup짯p짯ly chain is cri짯ti짯cal for ensu짯ring inno짯va짯ti짯on in the짯se are짯as remains unin짯ter짯rupt짯ed, said Dr. Roa짯wen Chen, Seni짯or Vice Pre짯si짯dent and Chief Sup짯p짯ly Chain and Ope짯ra짯ti짯ons Offi짯cer, Qual짯comm Tech짯no짯lo짯gies, Inc. 쏰ur con짯tin짯ued col짯la짯bo짯ra짯ti짯on with GF helps us to expand the next gene짯ra짯ti짯on of wire짯less inno짯va짯ti짯on as we move toward a world whe짯re ever짯yo짯ne and ever짯y짯thing can be intel짯li짯gent짯ly connected.

GF셲 glo짯bal manu짯fac짯tu짯ring foot짯print enables us to part짯ner with our cus짯to짯mers to meet their capa짯ci짯ty needs, whe짯re they need it, said Dr. Tho짯mas Caul짯field, pre짯si짯dent and CEO of GF. 쏰ur col짯la짯bo짯ra짯ti짯on with Qual짯comm Tech짯no짯lo짯gies deli짯vers dif짯fe짯ren짯tia짯ti짯on and inno짯va짯ti짯on in mobi짯le and IoT span짯ning three con짯ti짯nents, and this long-term agree짯ment exten짯si짯on pro짯vi짯des Qual짯comm Tech짯no짯lo짯gies with addi짯tio짯nal U.S. based manu짯fac짯tu짯ring for a more resi짯li짯ent sup짯p짯ly chain.

Today셲 announce짯ment from our CEO Sum짯mit in Washing짯ton, D.C. secu짯res Qual짯comm Tech짯no짯lo짯gies as a key long-term cus짯to짯mer through 2028 in our most advan짯ced fab in upsta짯te New York, which tog짯e짯ther with U.S. CHIPS and sta짯te fun짯ding, will fuel expan짯ding GF셲 U.S. manu짯fac짯tu짯ring foot짯print. We applaud the bipar짯ti짯san efforts and lea짯der짯ship demons짯tra짯ted by Sena짯tor Schu짯mer and the incre짯di짯ble sup짯port of Com짯mer짯ce Secre짯ta짯ry Rai짯mon짯do to bring back chip manu짯fac짯tu짯ring to Ame짯ri짯ca, added Dr. Caulfield.

The glo짯bal demand for semi짯con짯duc짯tors is gro짯wing at an unpre짯ce짯den짯ted rate, and GF is respon짯ding to this growth through a series of stra짯te짯gic long-term agree짯ments with exis짯ting and new cus짯to짯mers and simul짯ta짯neous짯ly expan짯ding glo짯bal capa짯ci짯ty to meet cus짯to짯mer demand in part짯ner짯ship with fede짯ral and local govern짯ments. Today셲 announce짯ment with Qual짯comm Tech짯no짯lo짯gies is an important step con짯sis짯tent with this col짯la짯bo짯ra짯ti짯ve model.

About GF

Glo짯bal짯Found짯ries (GF) is one of the world셲 lea짯ding semi짯con짯duc짯tor manu짯fac짯tu짯r짯ers. GF is rede짯fi짯ning inno짯va짯ti짯on and semi짯con짯duc짯tor manu짯fac짯tu짯ring by deve짯lo짯ping and deli짯ve짯ring fea짯ture-rich pro짯cess tech짯no짯lo짯gy solu짯ti짯ons that pro짯vi짯de lea짯der짯ship per짯for짯mance in per짯va짯si짯ve high growth mar짯kets. GF offers a uni짯que mix of design, deve짯lo짯p짯ment and fabri짯ca짯ti짯on ser짯vices. With a talen짯ted and diver짯se work짯force and an at-sca짯le manu짯fac짯tu짯ring foot짯print span짯ning the U.S., Euro짯pe and Asia, GF is a trus짯ted tech짯no짯lo짯gy source to its world짯wi짯de cus짯to짯mers. For more infor짯ma짯ti짯on, visit www.gf.com.

For짯ward-Loo짯king Statements

This news release may con짯tain for짯ward-loo짯king state짯ments, which invol짯ve risks and uncer짯tain짯ties. Rea짯ders are cau짯tio짯ned not to place undue reli짯ance on any of the짯se for짯ward-loo짯king state짯ments. The짯se for짯ward-loo짯king state짯ments speak only as of the date hereof. GF under짯ta짯kes no obli짯ga짯ti짯on to update any of the짯se for짯ward-loo짯king state짯ments to reflect events or cir짯cum짯s짯tances after the date of this news release or to reflect actu짯al out짯co짯mes, unless requi짯red by law.

About Qual짯comm

Qual짯comm is the world셲 lea짯ding wire짯less tech짯no짯lo짯gy inno짯va짯tor and the dri짯ving force behind the deve짯lo짯p짯ment, launch, and expan짯si짯on of 5G. When we con짯nec짯ted the pho짯ne to the inter짯net, the mobi짯le revo짯lu짯ti짯on was born. Today, our foun짯da짯tio짯nal tech짯no짯lo짯gies enable the mobi짯le eco짯sys짯tem and are found in every 3G, 4G and 5G smart짯phone. We bring the bene짯fits of mobi짯le to new indus짯tries, inclu짯ding auto짯mo짯ti짯ve, the inter짯net of things, and com짯pu짯ting, and are lea짯ding the way to a world whe짯re ever짯y짯thing and ever짯yo짯ne can com짯mu짯ni짯ca짯te and inter짯act seamlessly.

Qual짯comm Incor짯po짯ra짯ted includes our licen짯sing busi짯ness, QTL, and the vast majo짯ri짯ty of our patent port짯fo짯lio. Qual짯comm Tech짯no짯lo짯gies, Inc., a sub짯si짯dia짯ry of Qual짯comm Incor짯po짯ra짯ted, ope짯ra짯tes, along with its sub짯si짯dia짯ries, sub짯stan짯ti짯al짯ly all of our engi짯nee짯ring, rese짯arch and deve짯lo짯p짯ment func짯tions, and sub짯stan짯ti짯al짯ly all of our pro짯ducts and ser짯vices busi짯nesses, inclu짯ding our QCT semi짯con짯duc짯tor business.