U.S. Department of Defense and GlobalFoundries Partner to Secure Supply of Chips Critical to National Security Systems

Rhea-AI Summary

GlobalFoundries (Nasdaq: GFS) has secured a $117 million agreement with the U.S. Department of Defense to supply critical semiconductors for national security applications. The semiconductor chips will be produced at GF's Fab 8 facility in Malta, New York. This partnership aims to boost domestic semiconductor manufacturing capability and ensure a secure supply of essential chips for defense and aerospace. The agreement also facilitates a technology transfer from Fab 10 and is expected to enhance GF's offerings to commercial clients.

Positive

• Secured a $117 million contract with the U.S. Department of Defense.
• Strengthens supply chain for critical national security semiconductor applications.
• Technology transfer will enable continued offerings of the 45nm SOI platform to commercial customers.

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• None.

Public-private partnership provides strategic supply of U.S.-made and secure semiconductors for the nation's most sensitive defense and aerospace applications, boosts supply of feature-rich chips for critical infrastructure commercial applications

MALTA, N.Y., May 2, 2022 /PRNewswire/ -- GlobalFoundries Inc. (Nasdaq: GFS) (GF), a global leader in feature-rich semiconductor manufacturing, today announced a $117 million agreement with the U.S. Department of Defense (DoD) to provide a strategic supply of U.S.-made semiconductors that are critical to national security systems. Securely manufactured at GF's most advanced semiconductor manufacturing facility, Fab 8 in Malta, New York, the chips will be used in some of the nation's most sensitive defense and aerospace applications.

Building upon the longstanding partnership between the DoD and GF, the new agreement provides the DoD with a supply of semiconductor chips manufactured on GF's differentiated 45nm SOI platform. Under the agreement, the manufacturing of these chips will be transferred to GF's Fab 8 from GF's Fab 10 in East Fishkill, New York. In addition to providing continuity of supply for the DoD, this technology transfer to Fab 8 will enable GF to continue offering its 45nm SOI platform to commercial customers after GF's Fab 10 transitions to ON Semiconductor as previously announced in April 2019.

"GF is proud to be a longtime supplier to the U.S. Government, and we remain deeply committed to meeting the semiconductor technology needs of the Department of Defense, as well as the technologies so critical to our national security," said GF CEO Tom Caulfield. "The strong public-private partnership demonstrated with this new supply and tech transfer agreement is an excellent example of the impact federal collaboration and investment in semiconductor manufacturing can have on strengthening domestic supply chains. Our partnership boosts the national economy, while also securing a strategic and reliable supply of chips needed by the U.S. government for aerospace, defense, and other mission-critical applications."

In a supportive statement, the DoD said: "This agreement with GlobalFoundries will strengthen the domestic microelectronics industrial base, as part of the nation's effort to sustain its semiconductor manufacturing capability necessary for national and economic security. Our agreement will ensure access to 45nm SOI semiconductors critical to DoD strategic systems, and is the latest collaboration in the longstanding partnership between the DoD and GF to provide silicon-based semiconductors for defense aerospace applications."

Under the agreement, the DoD awarded $117 million to GF. The first chips from the agreement are targeted to begin delivery in 2023.

GF employs nearly 3,000 people at Fab 8 and has invested more than $15 billion in the facility. GF's Fab 8 is in compliance with both U.S. International Traffic in Arms Regulations (ITAR) and highly restrictive Export Control Classification Numbers under the Export Administration Regulations (EAR). GF is working with the U.S. government to secure classified status for Fab 8.

GF's experience with ITAR and EAR regulations, in addition to the secure manufacturing being done at Fab 8 and the classified manufacturing taking place at Fab 9 in Vermont and Fab 10, are key to the GF Shield Program and GF's embracing its role as the nation's most secure and trusted semiconductor manufacturer. The GF Shield program extends to GF commercial customers across all sectors a level of key safeguarding and protection principles modeled on those GF uses to manufacture semiconductors for government entities.

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.

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SOURCE GlobalFoundries (GF)

FAQ

What is the $117 million agreement between GlobalFoundries and the Department of Defense?

GlobalFoundries has entered into a $117 million agreement with the U.S. Department of Defense to supply semiconductors critical for national security applications.

When will deliveries start under the GlobalFoundries DoD agreement?

The first chips from the agreement are targeted to begin delivery in 2023.

Where will the semiconductors for the DoD be produced?

The semiconductors will be produced at GlobalFoundries' Fab 8 facility in Malta, New York.

How does the GlobalFoundries agreement impact national security?

The agreement ensures a secure supply of critical semiconductors for defense and aerospace applications, enhancing the domestic semiconductor manufacturing capability.

What technology will GlobalFoundries provide under the DoD contract?

GlobalFoundries will provide semiconductor chips manufactured on its differentiated 45nm SOI platform.