News Article

U.S. Department Of Defense Partners With GLOBALFOUNDRIES To Manufacture Secure Chips


GLOBALFOUNDRIES (GF), leading specialty foundry, has
announced a strategic partnership with the U.S. Department of Defense (DoD) to
provide a secure and reliable supply of semiconductor solutions manufactured at
GF's Fab 8 in Malta, New York — the company's most advanced semiconductor
manufacturing facility. These semiconductor chips will be used in some of the
DoD's most sensitive applications for land, air, sea, and space systems.

Under the agreement, GF will provide a supply of chips built
at Fab 8 on its differentiated 45nm SOI platform. The agreement is made
possible by Fab 8's compliance with U.S. International Traffic in Arms
Regulations (ITAR) and highly restrictive Export Control Classification Numbers
under the Export Administration Regulations (EAR).

The new supply agreement builds upon the longstanding
partnership between the DoD and GF to provide chips for defense, aerospace, and
other sensitive applications. GF currently supplies the DoD with chips
manufactured at GF's other on-shore facilities, Fab 10 in East Fishkill, New
York, and Fab 9 in Burlington, Vermont.

“GLOBALFOUNDRIES is a critical part of a domestic
semiconductor manufacturing industry that is a requirement for our national
security and economic competitiveness,” said Senate Majority Leader Chuck
Schumer, who successfully passed new federal semiconductor manufacturing
incentives in last year's National Defense Authorization Act (NDAA). “I have
long advocated for GLOBALFOUNDRIES as a key supplier of chips to our military
and intelligence community, including pressing the new Secretary of Defense,
Lloyd Austin, to further expand the Department of Defense's business with
GLOBALFOUNDRIES, which will help expand their manufacturing operations and
create even more jobs in Malta.”

In a supporting statement from the U.S. Department of
Defense, “This agreement with GLOBALFOUNDRIES is just one step the Department
of Defense is taking to ensure the U.S. sustains the microelectronics
manufacturing capability necessary for national and economic security. This is
a pre-cursor to major efforts contemplated by the recently passed CHIPS for
America Act, championed by Senator Charles Schumer, which will allow for the
sustainment and on-shoring of U.S. microelectronics capability.”

"GLOBALFOUNDRIES thanks Senator Schumer for his
leadership, his ongoing support of our industry, and his forward-looking
perspective on the semiconductor supply chain,” said Tom Caulfield, CEO of GF.
"We are proud to strengthen our longstanding partnership with the U.S.
government, and extend this collaboration to produce a new supply of these
important chips at our most advanced facility, Fab 8, in upstate New York. We
are taking action and doing our part to ensure America has the manufacturing
capability it needs, to meet the growing demand for U.S. made, advanced
semiconductor chips for the nation's most sensitive defense and aerospace

The first chips from this new agreement are targeted to
begin delivery in 2023. GF is in ongoing discussions with the DoD regarding
Trusted Accreditation for Fab 8.

GF employs nearly 3,000 people at Fab 8, and has invested
more than $13 billion in the facility. The company recently announced a land
purchase option to provide additional flexibility to expand Fab 8's footprint
to support growing demand from the U.S. government and industry customers. In
total, GF employs more than 7,000 people across the U.S., and over the past 10
years has invested $15 billion in U.S. semiconductor development.

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