GLOBALFOUNDRIES (GFS) investor relations material

Market and Strategic Positioning

• Physical AI is seen as the next major inflection, enabling tens of billions of devices to sense, think, act, and communicate in real time, driving new applications and reshaping technology's interaction with the physical world.

• The serviceable addressable market (SAM) for physical AI is projected to exceed $18 billion by 2030, spanning transportation, industrial, consumer, and medical sectors, with significant upside as new applications emerge.

• The transition to physical AI will require a broad set of semiconductors, with demand for analog precision, multimodal integration, ultra-low power, secure connectivity, and advanced sensing.

• The portfolio includes leading platforms for both data center and physical AI, such as silicon photonics, advanced packaging, RF, RISC-V processor IP, and ultra-low-power CMOS, already seeing strong design win momentum.

• The addition of MIPS RISC-V processor IP and subsystems enhances the ability to deliver real-time, event-driven computing for physical AI.

Technology and Product Innovation

• FDX and FinFET platforms are optimized for power efficiency, RF connectivity, and integrated solutions, serving IoT, industrial automation, and smart devices.

• MIPS processors, with a legacy in real-time, multi-threaded architectures, are now integrated with platforms enabling deterministic performance for edge AI applications through modular, software-first RISC-V architectures.

• The Atlas Explorer platform allows customers to co-design hardware and software, tuning AI models before chip fabrication, accelerating time to market.

• Continued innovation in memory (MRAM, RRAM), RF, and high-speed connectivity supports advanced applications like ADAS, robotics, and humanoids.

• Advanced packaging capabilities, including silicon interposer, wafer bonding, and integration of differentiated solutions, are key drivers across markets.

Customer Engagement and Business Model Evolution

• Nearly triple the number of design wins in early 2025 versus two years prior, with about 95% of 2025 wins being sole-sourced.

• Engagements include top players across industrial, automotive, mobile, hyperscaler, and aerospace sectors, expanding beyond traditional foundry services to IP, custom silicon, and software.

• Customer feedback validates the MIPS strategy, with increased engagements and partnerships across the value chain.

• The business model now includes custom silicon, IP licensing, royalties, and software, supporting higher-margin revenue and long-term profitability.

• Physical AI is expected to drive at or above a 10% CAGR once ramped, outpacing historical growth rates.