GLOBALFOUNDRIES (GFS) Investor update summary

Strategic rationale

• Demand drivers include scaling AI data centers, physical AI, automotive, smart mobile devices, home and industrial IoT, and communications infrastructure.

• U.S.-Japan capacity aims to secure chips critical to national security, reduce supply-chain concentration and tariff exposure, and provide Japanese customers with U.S.-based capacity.

Malta build-out

• Selected as technology provider and operator for two new 300 mm fabs at Malta; up to $21bn is funded under the U.S.-Japan Trade Deal, with ~$10bn for the first fab and a further ~$10bn for the second.

• Each phase targets ~900,000 annual wafers at full run rate; together, the fabs could reach ~1.8 million wafers and increase U.S. wafer capacity by ~10%. Phase 2 requires approval.

• Phase 1 is shovel-ready, with key approvals, infrastructure and suppliers in place; groundbreaking is expected in Q4 2026, equipment readiness in 2028 and first wafers in 2029. Phase 2 go/no-go is expected before end-2028.

• Technology scope includes FDX, BCD and UX for edge and physical AI, automotive, industrial, AI data-center power management and connected infrastructure; the project term is at least 20 years.

Funding and operating model

• A U.S.- and Japan-owned SPV funds and owns fab infrastructure and tooling, with operating expenses in the funding structure; the operating partner builds and operates the fabs and provides technology.

• Compensation includes technology, construction-management and operating-management fees, shared-cost reimbursements and EBITDA sharing; technology fees are expected to begin in 2027 and run for at least 20 years.