National Academy of Sciences Conference Hudson Valley Community College

April 3-4, 2013

GLOBALFOUNDRIES is…

…the world’s first truly global foundry

A Heritage Like No Other

Leading-edge IDM

Leading-edge IDM fab focused on high performance

X86 CPUs

Consistently delivered rapid time-to- volume on advanced technologies (90/65/45nm)

Accustomed to competing successfully against a large

and well resourced competitor

Pedigree of technology excellence

Pure-play Foundry

Pure-play foundry with a who’s who list of “blue chip”

customers

Consistently recognized for efficiency and customer

service excellence

Accustomed to competing successfully against a large

and well resourced competitor

Pedigree of cost-efficient foundry operations

160 Customers

13,000 Direct Employees

6,000 US Patents

$11B Capex in 2010-2012

Customers across the full spectrum of semiconductor

products

Networking Game consoles Microprocessors

Networking Servers / Storage DTV

STB

Graphics

Tablets

Wireless

Connectivity Smartphones Portable

consumer DTV

High

Performance

Computing

Wireless, Mobile

Comp, Consumer

Wired Applications

& Networking

Delivering results

5 GLOBALFOUNDRIES Confidential

IC Insights

Delivering results

6 GLOBALFOUNDRIES Confidential

IC Insights

Global Manufacturing Footprint

Delivering on our Vision: The First Truly Global Foundry

Saratoga County, New York

Abu Dhabi, UAE

Dresden, Germany

Singapore

EFK

BVT

Fab8

Equipment Suppliers

Materials Suppliers

GLOBALFOUNDRIES is at the center of

New York’s “Tech Valley”

300mm state-of-the-art wafer fab

$8.5 billion project

First leading-edge foundry fab in U.S.

Six American football fields of cleanroom space

Designed for multiple leading-edge technologies

60,000 wafer starts per month

once fully ramped

Construction to Date: Over 2 million square feet

Over $1 billion in construction costs

Over 6 million man hours to complete

Over 10,000 new construction-related jobs

Operations: 2,000 new direct jobs to date, 3,000 by end of 2014

Currently over 10,000 indirect jobs; will increase to over 15,000 by the end of 2014

Total average annual payroll $300 million

Fab 8: The World’s Most Advanced Fab

Fab 8 Current and Expected Headcount Ramp

0

500

1000

1500

2000

2500

3000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2009 2010 2011 2012 2013 2014

Technician & Operators

Engineering

Professional

Management

Moving Technology & People Through “Tech Valley”

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Malta – Manufacturing & Development (2050 + jobs)

Albany - Advanced R&D Collaboration (70 + jobs)

East Fishkill - Development Collaboration (80 + jobs)

Employee Make-up

50% NY

50% other states and outside US

Attracting the world’s best and brightest

Ongoing ~ Focus on Veteran hiring

Veteran’s job fairs

Working with NYS DOL

“Field to Fab” initiative

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Why NY

Access to talent

Education system (in general)

Collaborative environment

R&D/joint ventures

Universities

Community

NYS/Locals - (ie: infrastructure development)

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Why NY

Ecosystem

NYS’s early investment in sector was an integral part of establishing the

required ecosystem (saw SC industry as a strategic industry ) U Albany/CNSE

GLOBALFOUNDRIES

NYS Incentives – “leveled playing field”

Largest public-private inv. in history

US Location

Stable Geography

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Current State

Exceeding expectations/ROI projections

Original NYS projects were a return of $2.54 on every $1, based on a

GLOBALFOUNDRIES investment of $4.3B and creating 1205 jobs.

GLOBALFOUNDRIES projected investment over $8B and more than 3000 direct jobs.

Site could support much greater development over time

Ancillary jobs

Many companies have located in the region or grown their existing workforce

Over 15,000 indirect support jobs will be created by the end of 2014

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Current State

Development of a collaborative approach with the Building Trades

Largest private Project Labor Agreement (PLA) in history – mutually beneficial

Collaborations on training programs

Support with regulatory issues and policy making

Assistance with addressing safety and jurisdictional issues

Voluntary MWBE participation

Acknowledged as an exemplary effort as private sector program by ESDC

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Current State – ancillary benefits

Tech Valley Connection for Education and Jobs

Leading the nations largest education/workforce development initiative of it’s type in the

nation; a 13 county regional laboratory throughout 1/5th of NYS, Pre-K though higher

education (111 school districts/345 schools) trialing the most innovative practices in

education today

Strategic support for/partnership with SUNY

Support for worker retraining (TAAACT grant)

The development of a Teacher STEM credential as a scalable model to provide basic math,

science and soft skills to all teachers

The development of an Advanced Manufacturing program as a form of early college HS to

provide foundational hands on skills in areas such as hydraulics, pneumatics, SPC, problem

solving, team skills, etc.

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Current State – ancillary benefits

CGI Supply Chain Network

Leading national discussions on how to improve supply chain connectivity and

innovation

National Network of Manufacturing Innovation

Vocal supporter of the Administration’s development of the NNMI program to help

develop the manufacturing base and improve supply chain innovation

Healthcare/Pharma/Medical Device Initiative

Facilitating discussions on how to leverage all three industries to truly revolutionize

healthcare

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Opportunity for the region

Fab 8 – Luther Forest Technology Campus

2

LFTC Development Areas

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1995: Site Selection Near Dresden, Germany

Fab 1, Dresden

Module 1

CUB 2

EVC 2

Module 2

EVC 2

BTF

CUB = Central Utility Building

EC = Energy Center

BTF = Bump Test Facility

GLOBALFOUNDRIES & Silicon Saxony Cluster

Dresden, Saxony:

Europe’s leading microelectronics

cluster

18 major research institutes in

Dresden (Fraunhofer, Max Planck,

Leibniz)

Investments 1990 to 2010

approximately $20B

1,200 companies, 44,000 employees in

2010 in Dresden (1989: 10 companies,

3,300 employees)

(Source: City of Dresden)

1 ZMD / X-Fab 2 Infineon 3 Siltronic

7 Max-Planck-Institute 8 Leibnitz Institute 9 Fraunhofer Institute

4 Carl Zeiss 5 TU Dresden 6 HTW

10 TU Chemnitz 11 TU Cottbus 12 Fraunhofer IZM

GLOBALFOUNDRIES AMTC

CNT

Berlin

Chemnitz

Freiberg

Cottbus

6

8

1

2

D R E S D E N

7

5 9

4

3

10

11 12

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The Semiconductor Industry in the US

A role in national and economic security

GLOBALFOUNDRIES - Reversing a Trend

After decades of US corporations investing and creating jobs overseas, Fab 8

is a reversal of that trend, attracting foreign dollars to create jobs and

economic growth in NY

The Semiconductor Industry in the US

US base - global significance (data per the SIA)

The semiconductor industry - nation’s leading export industry over the last 6 years and will be

vital in achieving the President’s goal of doubling exports by 2014.

While 82% of sales occur overseas, U.S. firms maintain 75% of their capacity at home.

Enables America’s $1.1-trillion high-tech industry (U.S. workforce of nearly 6 million).

Annual worldwide semiconductor sales average approx 300 billion.

Share of the worldwide market at 48%.

The industry is responsible for over 1 million jobs in the US

The Semiconductor Industry invested over $32 billion in research and development last year

GF is currently the world’s #2 semiconductor foundry company (the largest in the US).

The Semiconductor Industry in the US

Maintaining global leadership

The US semiconductor industry has been responsible for the world’s leading technology

innovations.

As we approach the limits of current technologies, the nation that develops the next

technology “switch” will be in a leadership position in the world’s tech based economy for

years to come.

Maintaining technology leadership and our ability to innovate is of the

utmost importance in maintaining economic and national security.

The Semiconductor Industry in the US

Research, technology and the semiconductor industry

TD/R&D is best suited in regions where semiconductor ecosystems are present.

Maintaining and growing future focused tech based industry…and specifically the

semiconductor industry, is widely seen as a key component in the future US economy.

GLOBALFOUNDRIES is leading R&D efforts in several areas, including the development of:

450MM wafer development

3D

EUV

Advanced nodes

Semiconductors are the driving force behind industry and virtually anything that requires technology to operate, from kitchen appliances to advanced weapons systems…and everything that will drive the move to energy efficiency and sustainable/green energy.

The Semiconductor Industry in the US

National security

The Department of Defense (DoD) depends heavily on the semiconductor industry’s

ability to innovate and supply the most advanced technology to support military

applications.

The US cannot afford to be second in technology development.

There continues to be fewer and fewer fabs in the US that can meet the DoD’s needs.

GLOBALFOUNDRIES offers a US based solution for advanced

technologies and a more secure supply chain.

The Value of Fabs to an Economy

Fabs are sought after investments by other nations around the world

because of their significant economic impact.

The “hub” of economic growth and are a catalyst for infrastructure development.

Require massive infrastructure improvements which facilitate much greater regional growth.

(As a large user, GF is making it cost effective to develop the region’s infrastructure).

The semiconductor industry drives improvements in the education system as well as

R&D/TD collaborations in universities which supports regional/national growth.

Fabs facilitate the retention of process R&D and innovation

The “clustering effect” that occurs in the regions of fabs is unequaled in other industries; they have a much greater economic impact on much larger geographic area.

Federal Support – key to industry survival

EPA Climate Rules/Regulations

Export Control Reform

Technology Programs/Government Research Funding

Corporate Tax Reform

Immigration Reform

Education Reform

Infrastructure

Keys to a Cost Competitive Operation

State and local government must understand the highly competitive nature

of the SC industry and partner in guaranteeing:

Required infrastructure

Low cost utility rates

Water

Electricity

Gas

Sewer

Due to the overall cost disadvantages in doing business in the US and the vast utility services required

to operate, low utility rates play a key role in making a fab operation globally competitive, insuring its

longevity and maximizing the ROI for all stakeholders.

The global competitiveness reality: governments around the world are prepared to offer very substantial incentives and an accommodating regulatory environment to attract what they deem as the most strategic industry on the globe.

Strategic Industry - summary

National & economic security

Nations top export industry on average over past 6 years

Attracts top talent/entrepreneurs

Requires soft & hard infrastructure which in turn supports much

broader growth

Catalysts for small business growth of all kinds

Drives tech growth…which drives growth in general

Anchors a center of excellence and causes a clustering effect

Fabs facilitate the retention of process R&D and innovation

Rendering: Fab8 Campus with Technology

Development Center

Potential 8.2 Project

Inside the Fab 8 cleanroom

Inside the Fab 8 cleanroom

Inside the Fab 8 cleanroom