Agenda. We have a very exciting lineup. Today, we have broken the agenda into two portions, equally timed, if you will. We'll start off with our CEO, Dr. Thomas Caulfield, giving you the vision of GF, followed by GF executives who are gonna be talking to you about our end markets, talking about our technology and platforms, talking to you about our commercial and go-to-market strategies. We'll also have our head of manufacturing talk about our manufacturing footprint. We'll touch upon ESG, which is a very important topic in the investment world these days. We'll talk about our talent. Finally, our CFO, David Reeder, will give you the financial plan for us as a newly public company. Right. So for... We have a pretty exciting lineup. For those of you joining in person, request that you turn off your phones. For those of you who are online, you're welcome to send in your questions at any given point of time for the Q&A session. Before we begin, just wanna remind you that you may hear some forward-looking statements today. For details on that, please refer to our SEC filing, most recent SEC filing, which is on our website. With that, let me turn over to the cue roll. Change. The pace is accelerating. The need for silicon has never been greater, and that need will only continue to grow. There has never been a better time to be in the semiconductor industry. At GlobalFoundries, we recognize the challenges, the opportunities, and the responsibility. We're focused on executing our business each and every day, and that's really front and center for all of us. While some have chosen to chase more, we have chosen to deliver more. More innovation, more features, more capacity, and more value. GF is delivering the feature-rich solutions that will be needed for decades to come, providing the technology leadership, solving the low power and high connectivity needs to accelerate the IoT explosion and enable the data centers of tomorrow. We are creating the chips and driving innovation to bring autonomous vehicles, AI, and intelligently connected networks to reality. We are enabling our customers to deliver market-leading innovation and reimagine the mobile user experience with our GF Connex portfolio. Building on our rich heritage of RF innovation and expanding the pervasive deployment of semiconductors, powering a new generation of intelligent wireless products. We announced GF Fotonix, our next generation widely silicon photonics platform. With major customer design wins and significant market share, GF expects growth in this segment to outpace the market. Who's doing the research and development necessary for the other 75% of the market? The answer is, today we are pleased to announce the establishment of GF Labs. GlobalFoundries has been a trusted partner for us, both with respect to the technologies, as well as offering us a geographically diverse footprint. It truly is a partnership, and we appreciate that very much. GF is making thoughtful strategic investments, adding to our existing global footprint and infrastructure to meet the ever-growing unprecedented need for new capacity. Building partnerships with key players, all to ensure future growth. GF is ready to do its part. We'll expand our facilities. We're already spending over $1 billion in the U.S. as we speak to add capacity. We have arrived at a very different level of partnership. Now, we count on you to be successful. In the last year, we have exceeded all expectations and established GF as the leading foundry of choice. Q2 revenue was up 23% year-over-year. We delivered record adjusted gross margin of 28% and record adjusted net income. Throughout supply chain and other challenges, the GF team continues to execute and remains on track to deliver a strong year of growth and profitability. This notion of how we've been doing it for the last 20-25 years, it's not gonna work anymore. Where you've positioned your company with the technology suite you have, I think you guys are heading down the right path for sure. No matter what direction world events take, the pervasive need for silicon will remain constant. The chip shortage must be addressed, and GF is uniquely positioned to tackle it, to lead our industry forward, upward and beyond. More value, more innovation, more of what our industry needs. GlobalFoundries, delivering a new era of more. I'm not supposed to get emotional when I watch that, but I'm pretty proud of the stuff. How are we doing today? Look, I know the most precious commodity all of us have is our time, and the fact that you made the time to learn about GF today is greatly appreciated. With that, let's get going. You know, I don't usually spend a lot of time o n the intro chart. I think this sets up not only the company and the day, but really where the industry is happening. Partnering to change the industry that's changing the world. I don't think there's any argument that the semiconductor industry is changing the world. It's how we educate our children, run our businesses. Think about some of us that have been around a little bit longer than others, right? Color TV was a big deal. Look what we have today. It's because of semiconductors. Now, why do we need to change the industry that's changing the world? Well, for one, if you don't change, you're gonna be behind. More importantly, you change for one of two reasons. You change because you don't like the outcomes, or you change because there's structural or fundamental changes going on that the industry needs to adjust. For two, for us, there's two. We need a new innovation engine that's beyond just scaling transistor size. The second is, this industry needs to double in the next decade. It's not just its opportunity, it's its responsibility to continue to drive the digital transformation of society. It's not gonna be able to deploy that type of capital in a traditional model. For us, you'll hear a lot today about us partnering to do what the industry needs to change the industry so we can all enable the growth in a profitable way for our customers and our partners. Let me start a little bit about the industry, and then I'll get into GF. We all know and we all have our favorite mega trends. Smart connected devices. Every minute, 7,000 new devices are added to the internet. In fact, just as I started to make this little factoid, 500 were just added. The explosion of use cases on AR/VR. You know, during the pandemic, you know, we couldn't get equipment suppliers to travel. There were lockdowns. Our employees couldn't travel. We found a way to take advantage of augmented reality, where equipment engineers in Singapore could walk through our engineering team in Fab 8, Upstate New York on how to do equipment maintenance. AI, machine learning, explosion of opportunities. Why? Because it drives efficiency. 30% of all code written today is with AI and machine learning. That's just the tip of the iceberg of how this industry is gonna leverage it. It's all about productivity. For me, it all comes together in the mega trend of data everywhere. It's an explosion of data. 150 GB per person are consumed by every person on the planet every day on average, and at least 1 GB per person is stored. That's gonna double by 2025. It really creates what I call this virtuous cycle of creating data, parsing data, transporting data, processing the data, storing it, and then the ultimate is to monetize data. This is gonna continue to drive the semiconductors as we do all these other mega trends. The one thing about these mega trends, they're either gonna be accelerated or limited by one factor, the rate of innovation and pace of capacity of semiconductors. A little bit about our industry, and the way I like to talk about it. This is an industry that grew up through a series of what we call golden ages that created new applications that drove demand. Started with PCs, and then PCs needed to be connected to one another and networking. Then something really fundamental changed, the smart mobile device. The singularity of the device that allowed us to connect and be connected to everything in the world. We finally had a reason to have our thermostat connected, right, to the internet because we can control it from anywhere in the world. We can open our garage doors. What happened is we went from that time, from the beginning of the smartphone to where we are today, from a compute-centric industry to the pervasive deployment of semiconductors everywhere. What you'll see is over the previous decade, 2010 to 2020, we grew at 4%, and we're gonna grow three times faster than that going forward. There's nothing like a crisis or a shortage to create awareness. Here's an industry that has changed the way humankind has lived, and no one even knew what a semiconductor was until you couldn't buy enough washing machines or cars. Now everybody knows what a semiconductor is. Fundamentally, what everybody learned is what we all knew. Semiconductors are the heart of the world economy, and foundries are the bedrock of that industry. An $89 trillion world economy that sits on a $2.2 trillion electronics industry with thousands of customers or thousands of suppliers that exists only because there's a $600 billion semiconductor industry. If you see there's hundreds of companies, you think about with the kind of companies there, sure you have fabless, you have hyperscalers, OEMs, and what we call IDMs. The thing about IDMs, there's no such thing as a pure play IDM anymore. They're all hybrid. They manufacture some of their own material. They come to foundries like GF. There isn't a single IDM that doesn't use GF as well. Then it amazes me every time I say this. The entire world economy comes down to 5 companies in foundry space serving a $96 billion market opportunity. 5. 2 are in Taiwan, 70% of the output, one in China, Samsung, and GlobalFoundries. Now, I'm generous when I say scale, right? There's more foundries of scale. I give just two. You just have to have $2 billion of revenue in foundry, and I say you have scale. 5. The thing about it is the semiconductor industry will outpace the GDP. You say, "How is that possible? How can you go faster than GDP?" It's something called market share, that semiconductors will have a disproportionate role in the world economy. Because of new entrants in the market, because IDMs will outsource more of their capability, the foundry TAM will grow disproportionate. Semiconductors will outpace GDP, and foundry will outpace semi in growth over the next 10 years. Last chart about the industry, and it was where I began this presentation on structural changes that drive the need to change. What's happening in our industry? Well, when we were a Moore's Law industry, that's what we chased, and we were highly cyclical. We were cyclical around versions of Microsoft Windows and x86 architecture. Whoops. I clicked ahead. Today, with the pervasive deployment of semiconductors, much more durable demand drivers, much more market segments served. For me, what does it mean? We will have cycles in this industry because we're not immune to macro events. The cycles, in our opinion, will be more muted and less in frequency. In the past, it was a little bit of build capacity, they will come. Supply was always put ahead of demand. That created really bad economics if you're a manufacturer. We all know that. Today, independent of, you know, choppiness we'll see in the market over the next decade, for this industry to double, capacity will be trailing demand, the opposite. The demand will be ahead of capacity as you get put on. In the past, manufacturers took all the risk, build it and try to get a return on it. Today, there's no way capacity can put on without a better, more balanced economic model. GF will never put capacity on for GF. We're not a product company. We have no use for it. We'll just stare at it and sit idle. We only put it on if our customers want us to put it on, need us to put it on, commit to use it, and help us create that capacity with their balance sheet. Lastly, you know, there's a reason there's five foundries in the world. It's a tough business. Value in an ecosystem, not always value capture or creation is equal to value capture. It was because there was lack of value capture in manufacturing, less and less companies did that. What you're gonna see going forward, a much more healthy and balanced ecosystem of how value is captured and how it's created. For that to happen, we'll all need a new collaborative model. Maybe you heard, Matt Murphy in our sizzle reel talk about what got us here is not gonna get us there. We're gonna lead and have led on how this new collaborative model could work for win-win outcomes. Let's talk about GF now. That's what's happening in the industry. Maybe just to recap a little bit of our journey and our strategic repositioning. You know, we started as a spin-out at AMD in 2009, $1 billion in revenue and one customer. The strategy was the right vision. The world needed a global manufacturing foundry capability. Arguably, that strategy was a little ahead of its time. It was flawed when we found ourselves in 2017, 2018. The world had changed from a compute-centric industry to a pervasive deployment of semiconductor, and we were still chasing Moore's Law. We were playing a losing game. We had heavy investment, second source business, high customer concentration, and as you can imagine, you know, risky. I'm being kind when I say this, risky and suboptimal financial results. We decided to pivot the company, to reposition, to take advantage of the structural shift that happened in the industry when we went from a compute-centric industry to the pervasive deployment of semiconductors, and we drove a transformation. The first thing we had to do is we were thinking about taking our business a different way, was we had to bring in the right technical and executive team. We needed to bring people who understood the end markets where we could create differentiation for our customers and capture that differentiation. We need to take that insight and refocus our capital deployment and R&D investments to deliver that differentiation. To do that in the best way, we needed to reestablish better connectivity and partnership with our customers, so they can help dictate our technology roadmap, so we could specialize for them. As a result, we created a lot of single-source differentiated business that helped us drive margin expansion and earnings growth. You know, last August, just ahead of the IPO, I had my team together in Texas. You know, we didn't think we had to have a new play. We were in the middle of our transformation. All of a sudden, we're gonna go to the capital markets, and the question was, "What are we gonna do next?" We gave a lot of thought about that. It turns out what's best for us is the realization of this business, the realization of GF. Continue to gain market share in the end markets that we wanna play. Continue to drive the innovation in what we call purpose-built platforms with a mission in mind. Reinvent and redefine capital, efficiency and expansion through partnerships. As a result of all of that, our goal is to deliver the best-in-class financials of the foundry and industry as we become the world's leading manufacturing of specialty feature-rich technology. How does GF win? How do we go do all that? Well, we do it the following way. We focus on platform solutions addressing attractive secular end markets. We drive this portfolio through purpose-built innovation and platforms. We forge deep customer partnerships not only on technology innovation, but on how we build capacity together. We leverage our global manufacturing footprint where others will spend the better part of the next decade building a global footprint. We already have one, and we'll be able to leverage that. Of course, our customers and our investors wanna know we're gonna be around to serve their needs, and we're gonna do it with a resilient business model that includes strong visibility to our financials. With that, I'm gonna go through each one of these in high-level detail. The rest of the agenda is our executive team is gonna come up and take each one of these pillars and drive it much deeper. Let's start with the markets we choose to play in. Smart mobile devices, home and industrial IoT, automotive, comms infrastructure, and data center. You know, smart mobile devices, if you think of the amount of silicon by area in an iPhone X to iPhone 13, it's grown 60%. Right in our sweet spot. If you look at the amount of silicon just in the front-end module, in that same, you know, iPhone X to iPhone 12, it's another 30% within that. This is how you could hear what we just talked about yesterday about market share. Handsets down first half of this year versus first half of last year, yet GF grew 14% revenue because we're winning market share, intercepting trends, the trend of 5G transition and winning more applications in the smart mobile devices. Home and industrial IoT. Today, for every human in the U.S., there's 5 connected devices, right? That's gonna double in the next by 2025 and 5x growth by 2030. Automotive. We're going from internal combustion engine, ICE, to what we call autonomous connected electrification, ACE. Level 2 EV, 3 times more semi than an internal combustion car. If it's level 4 autonomous driving, it's 6 times more content of semiconductor. Comms and infrastructure, 8% CAGR, for us. I'm sorry. Comms and infrastructure, only 40% of the world's population today is connected to the internet. For us, when we think about our SAM, there's the overall foundry TAM. Our SAM is 12- nanometer and below. It grows at an 8% CAGR, and it becomes $111 billion. Ed Kaste will go in a lot more detail about these end markets. The takeaway is this industry will double over the next decade. The SAM we play in is over $100 billion, and we will be very focused in this big blue ocean of where we play to do the following. Create value for our customers and capture values for ourself. How do we create value? We create value through our innovation. When we think about our innovation, we do it through market-driven purpose-built platforms, seven of them, but we partition them the following way. We think about first our CMOS and FinFET technology. We make them feature-rich. We add embedded memory for security. We add BiCMOS for precision battery management. We add high voltage for display driver. We add analog digital capability to take the analog world into our digital world. The next set is probably the best example we have about purpose-built platforms. It's all about power, connectivity with the right amount of digital performance. FDX, 22FDX, our platform, right? Highly differentiated. Only GF has it. It's the most built out platform we have in terms of IP and ecosystem partners. The applications range in 5G millimeter wave for handsets to radar and automotive to Wi-Fi in your household. The next one over, RF SOI, another amazing platform for front-end modules. We went from 7SW technology to 8SW+, 9SW. Every year, we innovate on that platform as the communication standards continue to become more stringent and tight. We stay ahead of that game working with silicon photonics, addressing the biggest issue in data centers, power. The only platform in the industry that combines RF SOI, CMOS, and photonics in a single monolithic chip. We take the discipline of microelectronics and bring it to photonics, the discipline of microelectronics to photonics. Silicon- germanium, this is for really high speed, high power, high frequency data communications. Then lastly, what's next beyond this? What's beyond silicon? It's wide bandgap compound semiconductors, and we have a program in GaN that will be the next generation of power amplifiers and helping drive the electrification of automobiles. I think the point I'd leave you with is our industry has painted itself in a corner where we think innovation is only driven by the size of our transistors. The fact of the matter is there's many elements of innovation, and we are innovating beyond transistor size because someone's gotta do it. You know, the thing about being a foundry is everybody says, "I manufacture, therefore I'm a foundry." Ain't so. You cannot do this alone. Your customers have no way to design into your foundry manufacturing service if you do not enable them. You enable them on feature-rich platforms with PDKs, standard cells, libraries, complex IP, foundational IP, and you do this for a broad range of applications, and you just can't do it alone. You need partners in the industry. You need ecosystem partners. We spent the better part of the decade creating this ecosystem. We have 100 partners. We have 4,500 IP titles supporting, another 950 in flight that will be deployed. You know, the thing about what investors like to talk about is the moats around your business, right? What are the barriers? Well, semiconductor manufacturing in its sense is a moat. The complexity. Who's gonna wake up tomorrow morning and say, "I wanna get into this business"? Take a decade to get there. Well, you wake up tomorrow morning and you just happen to be already in manufacturing and you wanna become a foundry, this is your next barrier. You gotta get over this, and this doesn't happen overnight. It happens over the course of, you know, a decade in the types of investments and partnerships you need to establish. In the end, we focus our innovation to go capture 75% of that broader foundry TAM we talked about. It's a little over, growing to a little over $100 billion. We innovate beyond the transistor size, but focused on three dimensions: lowest power, best conductivity, and the right amount of digital performance, and we do it. We don't do it alone, we do it with ecosystem partners. This brings me to our broad and deep customer base. 2009, 1 customer, AMD. Today, we have over 200 customers, and they're the who's who of customers. They range from fabless to IDMs, to hyperscalers, to OEMs, and we do work with them in a partnership way. Not only do we align our technology roadmaps to their needs, we create capacity with their needs. We do it with 3 things in mind for both of us: certainty, durability and profitability. The certainty is we will only add capacity if we know our customers are gonna use it, and they're obligated to use it. We have more opportunity than the ability to satisfy that opportunity, so we do it in durable markets that we see have durable trends, where our differentiation does matter, and we can capture that differentiation with customers who win in that space. Then we do it profitably. If we don't get the right economics, we can't add capacity. The right economics for us are accretive to our business model and essentially very simple. If we're expanding capacity in an existing facility, it pays back in 3 years or less. If we have to build a new facility, new brick and mortar, it has to pay back in 5.5 years or less. You know, we want to have returns on our invested capital in the high teens. To that end, we have over 35 long-term agreements covering $27 billion of revenue. That's a 30% increase since, you know, our IPO. In fact, just yesterday, we announced an extension of a very important LTA with Qualcomm, and our customers are participating and committing to that capacity by putting their balance sheet $3.6 billion as part of the ways to create that capacity. The last thing I wanna make is a very important point. We meet our customers where they are. What does that mean? That diverse group of customers need different level of engagement. Some of them are very mature, and they need just good PDKs that they could count on, good IP. Others need help actually doing design. They would like us to have reference designs that then they can tailor to their needs. Others, small in nature, want a turnkey solution. They would like us to not only provide the manufacturing service of the wafers but give them a turnkey solution to the module level. The key is we do all of this. We meet our customers' needs. Broad customer base, partnership in innovation, partnership in how we add capacity. Balance sheet of our customers is a proof point of their determination and their desire to make sure that they have capacity set aside for them. As we go forward, we'll talk a little bit more like what we've done in France. We're not done. We will continue to innovate on economic models that bring win-win outcomes for both us and our customers. This brings me to the very heart of this company, the pulse of GF, our manufacturing. We have a global manufacturing footprint. We have three facilities in the United States, a 200-millimeter facility in Burlington, 300-millimeter, our most advanced in Malta, New York, and of course, our Fab Ten facility in East Fishkill. Fab Ten facility at the end of this year will transition to onsemi. This was a facility that was subscale for the type of foundry business we do, but it's super scale for Hassane and his team and the kinds of power devices they make. Great partnership transitioning a manufacturing asset, repurposing it to be a profitable business. We have two facilities now in Germany, our Dresden facility, and we'll talk a little bit more about what we announced and what we're gonna be doing in Crolles. Of course, Singapore, 200-millimeter GigaFab, 300-millimeter and 300-millimeter extension. This is truly becoming our first MegaFab. K.C. Ang will take you through a lot more detail, but let me say the following. You know, for the better part of the last 2 to 3 decades, you know, supply chains were managed to efficiency and cost. You know, maybe in an ideal world that can work out, but it's clear we don't live in one, and you're seeing how much companies that have over-focused on single points of failure, our business is suffering. The very nature of GF is we have a global footprint, and we have a global supply chain. We actually could share supply in parts of the world where maybe things are tight, but because we have a supply chain established for manufacturing in, say, Singapore or Europe or U.S., we can share. We add capacity to two dimensions, capital efficiency and economies of scale. You can rest assured you'll never wake up one morning and see an article or a press release that says, as long as I'm the CEO, that GlobalFoundries just added capacity in the middle of nowhere. There is zero likelihood of that because of the economies of scale and the capital efficiency. We will always build out on existing campuses. We spent a decade to create a global footprint. If others want one, they're gonna have to go through that journey. The Crolles is a perfect example of that. We didn't go and break ground on our own facility. We did it in partnership with STMicroelectronics. Then the last thing I would tell you on this supply chain security is our customers, as this world goes from globalization to more regionalization, wanna make sure that we can supply, you know, their products in a more globally diverse way. We go and work with them and plan our footprint where we can dual qualify technologies in our global footprint. One part number from a customer can be sourced at two locations. Lastly, we talked about is our capital efficient model. It's with partnerships, it's with customers, it's with governments, it's with GF to create the economic outcomes that make sense for us. What you will see from 2020 through 2025, the investments we have in flight, we will increase our manufacturing output 50%. Let me talk for a moment on our French expansion, our France expansion. You know, how do we think about it? It has to be consistent with our business model. First, we wanna make sure we're putting capacity, attracting towards attractive markets. You could see that this facility or this capacity is for IoT and auto. These are growing secular markets. This is where we wanna grow. We put that kind of capacity, and most of the capacity we're adding in our footprint is our differentiated capability. We're not gonna put second source capacity online. All of this capacity is on our 22FDX proprietary technology. Not only did we get significant government co-investments from the French government and the European Union, the part that GF owns, 80% of our, you know, 80% of the cash required, our customers are putting their cash on the line. When we're all said and done in this module expansion in Europe, what we have in flight in Germany today, plus when we do the full build-out of this French facility at STMicroelectronics, we will have three times the output in our European footprint. This deal checked the boxes. It checked the box and accretive to our business model because we had government funding and advanced payments to go fund this expansion. I think more importantly, it's not only that we have a manufacturing footprint, but that our customers trust us. It's in our DNA. We don't compete with our customers. We're not confused about our priorities and who we serve. Our customers trust us to deliver, they trust us to deliver in the right way, and they trust us to deliver a secure supply chain. In trusting to deliver, we have to deliver on time, 99% on- time delivery. We have to deliver, we have to deliver with high quality. When they're introducing new products to us, we have to get it first time right for them so they could get to market. Deliver in the right way is about who we are as a company. The number one operational metric at GF, the number one metric in any operation meeting we cite and report on is safety. We're the most safe company in the semiconductor industry. We do it and we make sure when we build our capacity and build our product, we do it with conflict-free materials. We have an eye and a thrust towards ESG. We're gonna reduce our carbon footprint by 2030 by 25% as we 50% grow our capacity. Now, we're gonna do it. It It doesn't come for free. We're gonna invest $75 million to do that. Those investment returns are consistent with any other investment we'll make in this company. Then we're trusted to deliver a secure supply chain, first and foremost, that we're gonna deliver the supply our customers need us to deliver. Our customers trust us enough to deliver that they put $3.6 billion of their balance sheet on our balance sheet. They trust us to deliver flexibility and regional ability to deliver their product, and we cross-qualify many of our technologies to do that for our customers. Not only do our traditional commercial customers trust us, governments around the world trust us. We are ITAR Trusted Foundry certified for the U.S. government. We get to build the most sensitive and secure parts for our national security. 50% increase in manufacturing footprint between 2020 and 2025. We deliver that capacity through economies of scale and capital efficiency. We use dual site qualifications technology to create, to take advantage of our global footprint for our customers' supply chain security, and we will reduce our greenhouse gases 25% between now and 2030, even as we add a significant capacity. Let's get to the last one about trust. We're trusted by all our stakeholders that we have a business model with strong earnings and visibility. Our customers need to know we're gonna be around for decades. Our employees need to know that we have a robust business. I think many in Sukhi's room wanna know we have a robust business. Let's talk about that. Let's talk about it in the way we think about our business, certainty, durability, and profitability. If you look out in time. 80% of our capacity through 2025 is covered by long-term agreements. By 2024, we have long-term agreements covering 75% of our capacity, and we have committed design wins in new business. We do not want five years of 100% coverage on long-term agreements. We need to remix our business. We need to innovate and continue to create capacity. Durability. Durability is about attractive end markets where we could differentiate and capture value. 90% of the design wins first half of 2022 were in single source business. If you remember from our roadshow, we told you in 2021, 80% of design wins was single source business. Then on profitability, first half 2021 to first half 2022, 19% increase in a mix between better mix, richer products for us, and higher ASPs. David will talk a lot more about our long-term market. We're gonna continue to grow in the attractive markets and gross in the high single digits to low teens as the industry grows. More importantly, we will take our gross margins to 40%, and we will continuously be disciplined, leveraging our economies of scale and partnership model to add capacity in a disciplined way, long-term model, 20% of revenue on capital deployment. Last summer on our journey to IPO, we told you our story. We told you our story about 160 times, and we told you what you should look for, what you could count on, what we're committing. Let's do a recap. We told you we would penetrate and grow in secular end markets, the ones that are important to us, the ones where we can create differentiation. Auto and IoT, 65% year-on-year growth in revenue. In the first half of 2022, $3.6 billion of design wins. I'm sorry, in the last 12 months. We told you to get that type of single source business, we had purpose-built platforms where we're gonna innovate. Well, 90% of our design wins in the first half of 2022 has been on our single source business. We introduced 22FDX+. It took the world's lowest power platform and took 20% power and performance into it. We qualified and launched GF Fotonix and our GF Connex platform. We told you we'd continue to deliver on our commercial strategy focused on certainty, durability, and profitability. Today, we stand here with $37 billion of long-term agreements, 36% increase year on year, and now up to $3.6 billion of customer balance sheet in play. We told you we would build modular capital efficiency, and every piece of capacity we're putting on does exactly that, but it's not just putting the capacity on. All our programs are on budget, are all on time, and all of them are gonna increase our wafer output. In the first half, you saw 10%. Then lastly, I think this is the most important metric we told you you could count on. It's not about the revenue growth. It's about making sure we had multiples of profitability growth for every bit of revenue growth. Year on year, first half to first half, 29% revenue growth, 5x plus on gross or on earnings growth, profit growth. Let me leave you one last chart here. This is the leadership team. This is the leadership team that leads 15,000 employees worldwide. 15,000 dedicated, 15,000 strong, 15,000 diverse, 15,000 working as one GF. Later today, you're gonna hear from Ed Kaste, who's substituting for Mike Hogan, who couldn't be here today, on our end markets. We're gonna ask Juan Cordovez to come up and talk about our innovation. I'm sorry, Gregg Bartlett to come up to talk about innovation, Juan Cordovez to come up to talk about our partnership with our customers, Saam and Emily Reilly to talk about ESG and our talent, and David Reeder will finish it up with our financials. I want to leave you with one last thought. For the better part of the last five years, what we talked about GF was our opportunity, the opportunity ahead. As we stand here today, it is a lot less about our opportunity and much more about our responsibility, our responsibility to all our stakeholders, our customers, the communities we operate in, our employees, and now you, our investors. With that, I'm gonna hand it over to Ed. Thank you. Again. All right. Well, thank you, Tom, for getting us off to a great start and for that introduction. Good morning, everybody. It's a pleasure to be here with all of you today. My name is Ed Kaste. I'm responsible for product management at GlobalFoundries. I'll cover the end markets overview. The purpose of this section is to give you insights into how we select our end markets and how we prioritize engagements. We'll also get into the implications of this approach as it pertains to demand quality. As Tom mentioned, we measure this across certainty, durability, and profitability. That'll also set up a deeper dive on demand quality in Juan Cordovez's customer engagement section. We've prioritized four critical end markets: smart mobile devices requiring a broad range of connectivity solutions and rich features driving an immersive user experience. This is our largest end market, both by SAM and current revenue. Home and industrial IoT, pushing the limits of what it means to have seamless connectivity and a frictionless human machine interaction. This market is both high growth and extremely diverse. Automotive, rapidly becoming a smartphone on wheels. Semiconductor content is driven by autonomy, connectivity, and electrification. Lastly, communications infrastructure and data center. This is the infrastructure powering all of the above, both in the data center and in the network. Now, please note I won't be covering the PC market today, as it represents a much smaller portion of our overall SAM. Before we move on, I'd like to take a minute to highlight how we think about where we play in an increasingly broad semiconductor landscape. We take each of these end markets and we break them down. Each of these end markets call for specific applications with functionality that drives device selection. We prioritize these sub-markets to pick the most important to GlobalFoundries from a growth and value capture perspective. You see a couple of examples on this slide. You also see the market opportunity doubling as we get to 2020-2030, more than doubling. We'll illustrate more of the requirements and GlobalFoundries capabilities to address these sub-markets in the upcoming slides. Starting off with smart mobile devices. As you heard yesterday, this is currently our largest end market and accounts for about half of our revenue. Now, what are the key trends? As you can see in the left-hand graph, this shows the total handset volume over time. The growth, as we know, is relatively flat. There's a 3% annual growth there. But there are dynamics that are driving a SAM acceleration for GlobalFoundries. The first one is the 5G content. That's the purple bars. That's the subset of the overall handset volumes that are 5G-enabled phones. Those are growing at a 26% growth rate. That means additional RF content, whether it's for the sub-8 gigahertz or millimeter wave-enabled phones, both areas where GlobalFoundries has a strength. Additionally, there's feature growth that's enabled by the accelerated data rates, and this drives the overall content growth in the smartphone that Tom was highlighting. As you go from a smartphone like an iPhone X, 4G-enabled, 400 square millimeters of content. That explodes to 640 millimeters, 1.5 increase in content driven by the RF and the additional features enabled by the data rate. Then the third factor is the companion device market. These are the wearables. They're virtually tethered to the smartphone and part of this end market. The fitness trackers, the E arP ods, the watches, the emergence of AR/VR glasses. Altogether, this means a $23 billion market expands to $40 billion by 2030, an enormous opportunity. Now we'll go into the application areas in the smart mobile devices end market. A good way to think about this, the smart mobile devices requirements are on the two sides shown on this page. Shown on the left-hand side here is the core functionality, the communications. This requires best-in-class connectivity, whether that means cellular service up to millimeter wave or Wi-Fi. The Wi-Fi standards are also evolving, where Wi-Fi 6E is the state-of-the-art today and Wi-Fi 7 in the future. There are other communications not shown, but also on the left-hand side, Bluetooth Low Energy, typically used for the audio connection. Near field communications may be used for secure transactions, UWB, there's more. Then on the right-hand side of the plot here is the user experience. As the data rates continue to increase, it unlocks new use cases, whether that means streaming ultra-high resolution video, enabling immersive audio quality and other use cases. The smartphone never leaves our side. It's become essential to making secure transactions such as, wireless contactless payments or identity verification in the mobile wallet. This is becoming increasingly important in the post-pandemic world. All of this has to be enabled knowing that power matters everywhere. The expectation is still that a charge lasts the full day, even though you have additional features and capabilities. All of this means sophisticated power management. Now getting into the requirements of some of those applications. The first aspect is the communications. We sometimes forget that this was the original purpose of the phone. The selfie, taking pictures of your food, that all came later. What does it take to enable best-in-class communications? Rate. This means high speed and high bandwidth data transfer. Range. Mobile means on the move, and as we move around, we don't tolerate service gaps. That's a thing of the past. Power, getting all of this enabled on a single charge. GlobalFoundries continues to lead in RF solutions that enable best-in-class connectivity. For fully integrated solutions, FDX is a winning play. For specialized functions, RF SOI, silicon- germanium, and soon gallium nitride devices. GlobalFoundries is the number one foundry supplier of RF SOI devices, given the leadership capability that it provides, particularly for the RF front end. That's the portion of the phone that connects to the cell phone towers. In fact, if you break open. You want to do this. If you break open the front-end module from any premium smartphone, you're very likely to find GlobalFoundries content inside for the power amplifier, the low noise amplifier, and the switch. That's where this capability matters the most. Second application area that we described is the user experience. Again, high data rates unlock new use cases. Think about how that occurred in 4G, and that's surely to happen, as 5G deployment becomes more pervasive. Now, we all demand a seamless interaction with our mobile device, and this human-to-machine interface is analog. Icons are dragged around the screen. This only works if it works, right? What differentiates here is low latency, high accuracy, haptic response that's replaced the physical buttons on the phone. Commands are given by voice. These voice commands are picked out of a noisy environment. People, you know, have different intonations in their voice, and the phone has to be able to process all of that. Image sensors are required for high resolution, high dynamic range. This gives us great photos. This gives us image classification, which enables AI and has to work in all lighting conditions. Given the proximity to the user, all of the places we take our smartphones, trust cannot be in question. Again, since this last link in the chain is the human-to-machine interface, it calls upon feature-rich solutions. FDX technology for the fully integration, fully integrated architectures to manage sensor-sensor interfaces, combined with ultra-low power digital processing and BCD and NVM technologies. If you heard our earnings call yesterday, Tom introduced the industry's first 55-nanometer embedded non-volatile memory solution for power management. Look for this feature to be deployed in the next generation premium smartphones. A high level of integration of these features is what wins. To wrap up this end market, we achieved $2 billion of revenue in the first half of the year with good growth. The total design win for the trailing twelve months was $3.4 billion, and a massive $16 billion worth of LTA have been signed in this end market. This gives us some resiliency to the macro cycles and seasonality that may occur as we drive towards the longer-term growth trends. The beauty of our proven differentiation in the smart mobile device space is two things. One, it gives us scale because of the volumes involved in this market. Also it helps us create innovation that's directly applicable to our other priority end markets, as you'll see in the upcoming slides. Okay, moving on to home and industrial IoT. To get started, I'll remind you that home and industrial IoT contributed 17% of our revenue in Q2 with really strong growth, 72% growth year-over-year for the quarter. Now, to put that growth rate into more context, home and industrial IoT is an extremely diverse space. You see the icons on the left-hand slide representing a very broad array of use cases. In terms of unit volumes, the numbers are truly staggering. The number of smart devices per person, and Tom indicated, is expected to grow over 2x as we get into 2025. When the multiplier 2.5x of what? It's all of the human beings on the planet, all of the billions. So the numbers really add up. We're talking about 30 billion devices by 2025. During the course of the pandemic, the number of connected IoT devices actually eclipsed all other connected devices combined for the first time. This includes smartphones, laptops, tablets, all other connected devices, and this trend is not turning back. There's even more to it than that. The real driving force behind this growth isn't the consumer experience, it's the monetization of the data by hyperscaler internet companies like Google and Amazon. In this model, every new data point that's added to the database from a user transaction or some preference, it has more value than the data point that preceded it. This is the power of aggregation. You can see what that means is the economic value of the IoT data themselves is growing even faster than the unit volumes. All of these things contribute to lead us to a $32 billion market opportunity by 2030. All of this content, virtually all of this content is sitting in 12- nanometers and above. Okay, getting into the applications for IoT. You'll notice that this slide mirrors what I showed you in the smart mobile devices. The same attributes on the left-hand side of seamless connectivity, frictionless human- machine interface, and trust. They all play front and center, just like in the smart mobile device. What's different is the huge diversity of applications implied by the right-hand side of the chart. In the smart home, it's the smart speaker, the video camera, the smart thermostat, et cetera. In the industry, it's building control and precision farming and factory automation and safety, all of these use cases. All of this implies a very wide range of products, a wide range in form factors, different environmental conditions that these products are deployed into. All of this creates an extremely attractive market for feature-rich solutions. This part number diversity means that the barrier to move those products into single- digit nanometer is even greater because of the design costs and the mask costs, and the cycle times to validate those products is really prohibitive for this market because of this the broad use cases. Again, feature-rich solutions will win over brute force shrink. Getting into the application areas for IoT, we start with the wireless capabilities. This is video streaming, connected camera, smart home, and so forth. Capabilities required, similar to mobile, but there are aspects that push them even further. Rate, in this case, also means seamless connectivity, right? A user buys a new device, they expect it to connect to their home network seamlessly, right? If it's hard, the data shows that the user will give up somewhere between the second and the third try and return the product. It has to work. Range is key. Every 50% increase in range for transmit or receive translates to a 225% coverage area increase. Very important in the home. You have rooms that are further from the Wi-Fi router, harder to reach, and so range is key. Power is the ultimate scarcity in IoT. Compared to mobile devices, the battery is much smaller. Double A battery or a coin cell battery or printed, energy harvesting, solution. Yet the expectation between charges is not days or months, it's years, right? Think about a smart home deployment. To charge one of those devices, first you find the adapter, right? From the drawer. That's not easy. You get out the ladder, and how many times do you wanna do that, right? It can't be more than every couple of years. This is an ultra constrained problem. What wins in this market? The best wireless, the best range at the lowest possible power. Integration is also a key differentiator. If you can combine efficient communications with sensor connectivity and ultra-low power edge processing, it delivers the longer battery life and the smaller form factor for more IoT deployments. All of these things cry out for FDX. This is the industry's strongest solution to integrate these capabilities onto a single chip. That's the reason why we've shipped over 1 billion FDX chips to the field. It's also the reason why we're providing the solution to the number one Wi-Fi provider for IoT in the industry. Moving on to the second application area for IoT, the human- machine interaction. The frictionless interaction with our devices is critical. This is because IoT devices don't ship, you know, in a box with a keyboard and a mouse to set up, right? The interaction has to be easier and better. It can't be more complicated, otherwise the devices don't serve their purpose. They live in the junk drawer. This requires solving that last interface between the digital world of computing and the real world, which is analog. Analog functions don't scale well into single- digit nanometers. That's what makes this such a target-rich environment for the broad array of GlobalFoundries solutions shown here. The other aspect of this synergy is that winning in wireless, which we showed you on the previous page, either helps us win the integrated solution in FDX or it gives us an opportunity to present companion technologies like feature-rich CMOS, BCD, and NVM, to win in that product space. If any of you have ever given a voice command to Alexa, it's extremely likely that the voice processing and the data communications were done through GlobalFoundries silicon. To wrap this section up, as you mentioned yesterday, the revenue in this end market for GlobalFoundries, $669 million for the first half of the year at very strong growth rate. This puts us on track for this to be our fastest growing end market for revenue contribution. It's supported by over $2 billion of new design wins in the last 12 months and a healthy $3.9 billion of signed LTAs. We're winning with the winners in IoT. Notice among these logos, you have the number one smart speaker brand, the number one DTV brand, several of the leaders in contactless pay and transactions, and other number ones in their respective markets. Now let's take a look at how feature-rich silicon applies to another critical end market, automotive. To frame this next section, remember that the automotive market contribution to our revenue today is modest at 4%, but again, with very strong growth. The Q2 results represented a 34% year-on-year improvement. In the second half of the year, as Dave mentioned yesterday, we expect an additional 25% increase relative to first half of year as critical capacity comes online to serve the automotive market. Again, you'll see some parallels to the previous section. After all, what does the automobile become? A very large, smart, connected device. Right? Inside the automobile is actually a mini IoT network. These are the parallels that create a perfect extension from everything that we just discussed into this market. On top of that, there's electrification, and this is very important, similar to the mobile discussion because the growth rate of electric vehicles is much faster than the automotive market at large. That's shown in the left-hand chart, where the overall auto shipments per year are expected to grow at about 4%. If you look at the purple bars, that's the EV contribution growing much faster at 15% and leading to a point where by 2030 we expect about a third of the new vehicles to be electric vehicles. Then there's the content story. Just like in the mobile phone, where if you start with an internal combustion engine vehicle, level 1, that's basically cruise control capability that has $500 of semiconductor content per vehicle. Then this steps up as you go from ICE to an electric vehicle, and then you step up the level of ADAS from level 2 to level 4, you get to $3,000 of semiconductor content per vehicle. That's a six-fold increase. All of this means that the industry is going through unprecedented change, and if you combine that with the very well-publicized supply chain crisis, which we'll get into some more, this really creates a perfect storm-sized opportunity for GlobalFoundries. Getting into the application areas for this end market for GlobalFoundries. Again, the new automobile experience is no longer defined by the internal combustion engine or ICE. It's now defined by ACE. That's autonomy, connectivity, and electrification. Starting on the upper left-hand side, the key to autonomy is precision sensing. These are capabilities like radar and LiDAR. Automotive radar is designed in at extremely high frequencies, 77 gigahertz. This is well above the frequency of even 5G millimeter- wave communications. Our portfolio has real strength here, as evidenced by the announcement that we did last year with Bosch around their selection of a next-generation radar platform. Moving on to connectivity on the upper right. The connectivity includes both the car to the network, which could be using a 4G or 5G type of connectivity, as well as networking within the cabin. This mirrors what an IoT network looks like in a smart home. Then on the bottom left, electrification, which requires efficient power conversion and delivery to ensure that most drives can be accomplished on a single charge. More, as the vehicle becomes more self-sufficient, the passengers are expecting an expansion of features for comfort and convenience and entertainment. For us, and as Tom mentioned, this makes the right analogy, the smartphone on wheels, right? Others may have called it the data center on wheels, which for us puts a lot of emphasis just on the central computing function. If you think about all of the features to create the experience in the automobile, that's why we think the smartphone on wheels is the right reference. Let's dig in further. Starting out with the application area of sensing, which is really fundamental to all levels of ADAS. We get a lot of questions about autonomous driving, the technology readiness, regulations that might be required, and so forth. One area where there is no debate whatsoever is over the critical function of the sensors and the radars in all levels of autonomy. The capabilities required for automotive sensing are just like the human eye or the human senses that the machine is supplementing and then ultimately replacing. The key questions are things like, how far can you see? How wide can you see? How well can you resolve images in a wide variety of backgrounds and lighting conditions and environments? Since the world is very dynamic, being able to do the sensing in parallel with some level of edge computing for intelligence in the sensing is essential. Again, that all must be done at the lowest possible power. Our portfolio over on the right-hand side includes FDX, silicon- germanium, and other technologies that are delivering these requirements with leadership performance in elements such as the highest channel densities for radar that are available. This is the reason why we are the founder supplier to the number one radar solution provider in this market. The second application area, as I described, is power, and it's really become the new currency in the automobile. Why? Well, range anxiety is very real, right? It's actually limiting the uptake of electric vehicles with 300 miles, you know, being a critical threshold to provide enough coverage for most daily drives. Just like in the smartphone, this enables a full day of use on a single charge and then a full recovery overnight so that you're ready to start a new day. Also, like the smartphone, there's a conflict, right? The thirst for new features within the automobile is in direct conflict with the primary function of the automobile, which is the transportation. This all means that the creation, the conversion, and management of power is more important than ever. GlobalFoundries solutions like BCD have industry-leading figures of merit for this space measured in attributes like RSP, RON. They also support the widest range of operating voltages and a roadmap to gallium nitride power devices. This is the reason why we're with the number one battery management supplier to the number one OEM in North America. The last point I'll make on this is that you can't just become a great automotive manufacturer overnight. This takes decades of investment, manufacturing systems improvement, quality control systems improvement, and at GlobalFoundries, all of this is encapsulated in a service called AutoPro. We have one additional slide for the automotive section just to talk about an important topic, which is this, the automotive supply chain crisis. Of course, this is an ongoing issue that was initiated sometime during the pandemic when the surge in demand for laptops and equipment to work from home and school from home caught most people off guard, and especially the automotive industry, who was lagging to place their upside in orders. We wanted to just spend a minute describing what were the factors that broke down. In the automotive market, there were issues described on the left-hand side of the page, tiers of intermediaries, indirect communication. This led to reduced visibility and control in the supply chain. It led to opaque planning and forecasting. The third item here is it led to the separation of R&D. This led to a technology latency and lagging requirements, mismatching to requirements. Think about how fast the automotive market is now trying to evolve, and the R&D was out- of- sync with that and now playing catch up. Overall, this, these relationships were characterized as very tactical, meaning they lacked strategic planning and underinvestment was the result. The good news is on the right-hand side of the chart, we're seeing nearly all players in the industry now acting with urgency to make sure that we don't repeat this type of a mistake. GlobalFoundries, as a beneficiary of this environment, is already, you know, implementing and taking part in structural changes to the industry. The direct foundry to automotive via OEM relationship, as well as better relationships through the supply chain, have created more direct working exchange that's been helpful towards planning near-term supply, but also getting roadmaps aligned for capabilities that are required in the future and better partnerships, right? Which includes investments. I'm sure you took note of the announcement of an MOU signing that we had with Ford, and in fact, earlier this week, Tom was with the CEOs of both Ford and GM and other folks in the industry at our CEO summit just on Monday. Surely this is a key focus area for GlobalFoundries, and you can expect more good things to come. To wrap up the automotive section, in the first half of the year, we achieved $163 million of revenue in this end market. That's a 79% year-on-year growth. The leading indicators are very solid. The design win total for this end market, $1.5 billion. To put that into more context, enterprise-wide over that period, we had about $10 billion of new design wins. The automotive portion of that was 15%, you know, much larger than the 4% current revenue share. This indicates a remix of the portfolio and growth of the automotive content in our portfolio. Then lastly, $2 billion of long-term agreements have been signed in this end market. Honestly, this is an end market where it's really most important for the customer. Once the products are designed in automotive to a foundry solution, it's pretty difficult for them to be moved tactically. Once the investment has been made to design into the technology, it's in everybody's best interest to make sure that the capacity is there long term. These products have a very long runtime. As an example of that, the state-of-the-art today in automotive microcontrollers is in 40- nanometers with embedded non-volatile solutions. In that space, we are the sole supplier to two of the top three automotive MCU providers. It's all of these elements that give us confidence that automotive will be a $800 million run rate business for GlobalFoundries by the Q4 of 2023. Okay. Closing out in the last end market. This is communications, infrastructure, and data center. The last three end markets were all about massive data generation and consumption at the edge. This last one is all about getting that enormous amount of data to the cloud where it can be managed and returning insights from the data. As reported yesterday, this end market contributed 17% of our revenue in Q2, again, with very high growth, 50% growth year-over-year. This growth should come as no surprise given the topics that we just discussed earlier. As the number of connected devices per person grows, right, by 2030, 3x growth, the data generated by that grows as an exponential. So 9 x more data generated, and then the corresponding internet traffic generated from that, a 20x increase. These are the factors contributing to a projected 4x growth in the cloud computing market by 2030. It's not just the data center. This brings new requirements for infrastructure to pass around all of this data. 5G infrastructure will help, and it requires a much greater tower density in 5G to achieve the same coverage area. You see there a 4x growth in tower deployment. It also leads to the implementation of new networking types, such as low Earth orbit networking from low Earth orbit satellites. You can see that's a very high-growth area with 6x growth projected and 20,000 deployments by 2030. These are the trends that are expected to sustain a 9% growth rate and place a heavy demand on feature-rich solutions. Now, getting into the application areas for this end market, there are really opportunities for GlobalFoundries in four major categories. On the left, the first is chiplets, where GlobalFoundries has a strength. This is, for example, the interface devices that accompany single-digit nanometer cores in the data center, and these interface devices are a fairly large area. They place a heavy demand on the analog functionality, and again, the analog functionality doesn't see a strong benefit to moving to smaller geometries. You've seen some details of our ongoing engagement with AMD in this area, including an LTA extension that was publicized at the end of last year. In wired networking, at the top of the page, there's this exciting transition underway from electrons to photons and the rise of optical networking. This is a key shift expected to improve data rates, improve reach, and most importantly, deliver very significant power reductions. Because of those benefits, we feel this transition is inevitable, and we'll cover the details in an upcoming slide. Wireless communications on the right-hand side, this is where there are parallels in our mobility business. This covers the base station side of 5G build-out, as well as emerging applications like satellite networking. On the bottom, each of these applications calls for efficient power delivery and management. We know every joule matters in the data center as this drives the total cost of ownership. It's more than just the cost of ownership. Well, what could be more than the cost of ownership? It's sustainability. On its current trajectory, the way the data center is going, it will eventually overrun the power grid's ability to supply the power that's required to sustain the virtuous cycle. Innovation is a must-have in this area, and that's where GlobalFoundries fits in. Getting into this application area of the 5G infrastructure portion, this is a natural growth area for GlobalFoundries. Just as 5G delivers a great improvement or step-up in data rate, it comes with a handicap. There's an inherently shorter range with 5G because of the frequencies that are involved. They can't penetrate through solid objects. You know, that's not a good trade. Most of us wouldn't trade better data rates if it meant more coverage gaps, right? To solve that problem, it means the investment in more infrastructure. This takes the form of new base stations and other networking types that I mentioned. There's a strong overlap of requirements for this space with our mobile business that is the Best Wireless Wins, and depending on the architectures that are chosen, you know, FDX technology provides leadership capabilities in an integrated solution. For the ultimate in low noise and higher output power, it's silicon- germanium to provide the best range and lower operating costs. This, the strength of this product line has made us a perennial supplier to top cellular infrastructure brands in Northern Europe, for example. Then the last application area to dig in, we saved one of the best for last here. This is all of the excitement around the emergence of optical network and the GlobalFoundries photonics solution. This technology breakthrough leads to a number of things. Higher bandwidth. We're talking about multiple terabit- per- second data links. Low latency. This allows for memory access in real time and more efficient machines. The reach that's enabled with optical network, nearly infinite, right, with very low losses that allows for the disaggregation of the data center. The energy savings speak for themselves. For the key figure of merit, which is a picojoule per bit transferred, we're expecting a 4-5x reduction in that key figure of merit, driving down to a single picojoule per bit. We have the industry's leading solution for this application space with our GF Fotonix. It's the world's only 300- millimeter fully integrated CMOS silicon photonics platform. It's targeting that next generation of architectures at the 1.6 terabit- per- second point, and we expect great growth here. The revenue contribution is modest today. We're projecting about $100 million for the year 2022, but that represents just under half of the total market share for optical networking, and we expect that market to grow to over a billion-dollar opportunity by 2026. Throughout that time, we expect to make steady market share improvements as growing along with the market based on the strength of the clients that we're engaged with in this space. This opportunity has been a couple of decades in the making. GlobalFoundries is extremely well-positioned with the likes of Nvidia, Marvell, Broadcom, Cisco, others, including some very innovative startups. To wrap up this section, both the revenue and growth rates for this end market remain compelling for GlobalFoundries. $2 billion of design wins, $3.2 billion of LTAs have been signed. Given the strong engagements that we have in this space with, again, AMD, Marvell, Cisco, Microchip, Broadcom, all of those listed here, the future of this end market remains very bright for GlobalFoundries. To wrap up, hopefully this section delivered as advertised some insights into the dynamics of the end markets that we've prioritized, and implications on GlobalFoundries demand quality. With that, I'd like to welcome to the stage Gregg Bartlett, our Chief Technology Officer, for a deeper dive into our portfolio and roadmap. I'd like to thank you all for your time and attention. Good morning, everybody. Chief Technology Officer, and guess what? I'm gonna talk about technology. I actually wanna start the technology talk by using the exact same slide that Ed used to summarize the discussion about the end markets, because that's how we develop technology. It starts with the diversity of the end market applications that Ed just spent time describing to you, and us formulating solutions for these very attractive markets with great value capture opportunities for us. For GlobalFoundries, when we develop a technology solution, it's because we understand that end market and that it doesn't matter if we think we have a differentiated technology, it's when the customer has a set of features that allows them to put a superior product in the end market. If you added it up, Ed showed more than 200 end market applications or sub-segments, so that's a very broad area of diverse technologies. When we think about creating an end market technology portfolio aligned to that, there are some very important considerations. I wanna highlight two of those. First and foremost, what is the efficient way of using your R&D dollars to maximize your coverage across those markets? It's by identifying common technology features, common traits and attributes, and using those to comprehensively deploy those throughout the portfolio. That's number one. Number two is the intimate understanding of how that product is differentiated in the end market and making sure those features are there in a way that differentiates that end customer. The next 20 minutes or so, I wanna dive into both of those topics. Let me actually start with the same picture of these end markets. There are four trends that are critical as we think about developing our technology portfolio for it. The first one is, it's all about the features. That doesn't mean that the underlying purpose-built platforms that Tom described this morning or the digital CMOS ultra-low power platforms aren't important. They are. We continue to invest in those. Once a customer has picked a platform, what they need to know is that the feature that will differentiate their product against their competitors is part of that technology, and it's a feature. In a minute, I'm gonna show you a really busy chart showing just how many features we're putting into our technology portfolio. You heard Ed say it a couple times, best wireless wins. In fact, depending upon the application, best wireless meaning best range coverage because you've got high dB power output from a power amplifier. You've got very high frequency allowing system-level designs for very high frequency switching in your applications. It's low 1/f noise so that you have a good signal-to-noise in your communication circuits. There are very few applications in which the best RF is not the ultimate decider of success in the marketplace. Only possible exception is low-end smart mobile device, where cost is a preeminent consideration. GlobalFoundries concentrates in developing our premier RF technology solutions. You heard a lot about automotive and the diversity of the applications. The vast majority of the technologies that GlobalFoundries creates ultimately finds its way into the automotive marketplace, sometimes purpose-built. Sometimes a decade later, somebody starts putting what was originally an RF SOI technology for a phone into a vehicle because you have to have a cellular transceiver with a front-end module, component in it. We'll talk about just how pervasive and deep our technology portfolio is in addressing automotive. The ultimate differentiation is always around power, whether that is a continued improvement in the digital platforms for battery-powered IoT devices or something as disruptive that Ed just talked about, the migration away from copper and electrons to glass fibers and photons. I'll talk about that as well. Let's talk about the scope of the portfolio of technologies we create. On the left-hand side, you see an array that quite frankly probably looks like hieroglyphics to many of you. The core to this is in fact that the teal colors are representative of the new features and platforms we're building in our portfolio of technologies today. To the point about it's all about the features, you see the representation of the concentration we're putting into delivering those features. In fact, on January first of this year, we had 120 qualified technology solutions in our portfolio. To be very clear, each of those technology solutions has dozens and dozens of configurable elements, meaning that customers get to pick the SRAMs they wanna have, how much copper interconnect, what kind of resistors and capacitors, et cetera, that they wanna have to differentiate it. It literally creates thousands of configurations for our customers in the end markets. In 2022, we're qualifying 16 additional technology solutions in that portfolio. In the earnings call yesterday, Tom said that nine of those were actually in the Q2 of the year. I'm gonna talk about two of those that are really instrumental to our technology portfolio. We're also in the process of developing six new technology platforms, each of which will have dozens of features over the years and decades to come. Then something that Tom and Ed already highlighted is the introduction of our first beyond silicon solution, the introduction of a wide bandgap material for GlobalFoundries, that's gallium nitride on silicon. What do you want to know about wide bandgap materials? Not about the bandgap structure of electrons in that material. It's about the fact that that material allows you to have very high voltages and power conversion 650 volts operate at very high temperatures and very high power, things silicon technology simply cannot do. We see good market applications for those, specifically very high performance and high switching RF components like an RF GaN PA or 650-volt power conversion for electrification of powertrain. That's new to our portfolio, and we're excited about the growth opportunity that represents. The second topic was best RF wins. In fact, if you look across the seven technology families represented here, you see that we have RF technology solutions in all seven of those families. I want to talk about a couple of those, though, that were of note. On Monday, the $4 billion extension of our long-term agreement with Qualcomm was all about 12LP RF. You'd say, "Well, what's so special about that Qualcomm would sign an agreement extending their contract out through 2028?" First and foremost, it's because the RF performance on the 12LP, which is our FinFET platform, is a very good RF technology. We have further optimized that technology for Qualcomm and a select other few customers to precisely meet the needs that they have for their end markets. Why does it stay so long? As it turns out, the circuits you design in RF and analog features don't really like to scale very well into single-digit nanometer technologies, which is why Qualcomm, in partnership with us, extended to a material amount of demand through 2028. One of the points I made earlier is about looking across various markets and identifying common attributes that can serve multiple markets. 22FDX, first and foremost, as an ultra-low power platform, but with RF content, exemplifies exactly this point. Three different market applications. Smart mobile device, Qualcomm has selected this for the 5G millimeter wave front-end module, as well as their envelope tracker, which has to switch at very high frequency for optimized power management. In addition, as Ed mentioned on the Alexa devices and many other IoT areas, that ultra-low power platform with embedded RF is the perfect solution for Wi-Fi 6, Wi-Fi 6E, and all of the other connected devices that go along with it. Thirdly, because of the very high performance RF on this platform, it's also been selected by a large number of automotive manufacturers for the 77-81 gigahertz automotive radar capabilities. The last area I want to highlight is, again, another technology reuse feature across our portfolio. Several years ago, we created a technology for 5G infrastructure called 45 RF SOI. You say, "Well, isn't forty-five kind of a strange node?" Actually, if you research the physics behind between RF performance, you'll find out that it's a sweet spot for the maximum frequency you can get in a digital platform. 400 gigahertz is available on this platform today. As it turns out, because of the very high performance and switching of the drivers and transimpedance silicon photonics, you want that same very high frequency rf in silicon photonics. We have lifted all of the knowledge garnered from deploying the 5G infrastructure piece with 45 RFSOI and brought that silicon photonics platform. okay, let me address automotive. You heard a lot about the diversity of the applications there. It is a smartphone on wheels, as Ed mentioned. He also indicated that it's an IoT network, in-cabin. All of those things are true, and with that scales the breadth and depth of the technology solutions to put vehicle-to-vehicle RF communications in place, vehicle-to-infrastructure for autonomous driving, certainly in-cabin LED lighting for power management devices, powertrain solutions, and of course, increased amount of MCUs with embedded non-volatile memories on there. As such, our portfolio of automotive technology spans six of the seven portfolios. The seventh one, of silicon photonics, and we do ultimately believe it will be a very good LiDAR solution, but it's a little early in the market for that. The second point Ed made that I want to reinforce as a technology guy is it is not a casual thing to wake up one morning and say, "I want to start manufacturing automotive semiconductors." Let me give you an example. An automotive microcontroller for Automotive Grade 0 requires the following. 175 degrees Celsius operating reliability qualification. Compare that to your consumer mobile device that all of you have. That's qualified at 85 degrees Celsius. When you go to 175, physics starts breaking down left, right, and center, and you have to spend years learning how to solve problems to achieve the qualification at 175 degrees Celsius. It also, because it's used for life safety applications like autonomous driving and braking, needs to be better than one part per million. Now, this is on top of 175 degrees C, better than one part per million. We do that by having all five of our manufacturing facilities adhere to IATF 16949, which is an automotive standard for semiconductor manufacturing. There'll be a quiz on that later. All of our factories are qualified to that because of the precise controls you have to exercise and, quite frankly, the improved level and use of metrology in the line to look for inline defects to make sure that they are weeded out from those products. With that as context, I want to highlight three really important technologies in our automotive portfolio. The first one is 130nm BCD technology. What's so special about this particular offering? Our customers know it because in fact, it's one of the fastest-growing demand that we have in automotive applications today. What's special about it is it's 130-nanometer, it's Automotive Grade 0 with embedded non-volatile, and if that isn't enough, we've added 85-volt voltage handling capability to it. Quite frankly, the fact that we're actually now, as a consequence of discussing with automotive manufacturers and customers that they want even higher voltage, we're in the process of qualifying 120-volt capability on there. That combination for Automotive Grade 0 is a true differentiator for us, which is why we're seeing such significant market traction. The second category or technology I want to address is 40-nanometer. It is a powerhouse technology node for us. Ed started by saying when he was describing automotive, two of the top three automotive microcontroller companies are using our embedded non-volatile. This is those guys. One is Automotive Grade 1, the other one is Automotive Grade 0. They're both in high volume manufacturing today in our Singapore operations. Both have asked us to actually qualify a second manufacturing facility to produce those. One of those two guys actually happens to also be using that same 40-nanometer technology node for their millimeter wave radar in advance of the migration to 22FDX. To best exemplify the breadth of the portfolio GlobalFoundries has embraced, radar is such a great example. On the bottom of this page, you see the system-level architecture comparisons. Some of our customers want to use a single integrated source that has transceivers and front-end modules and digital logic all in a single chip. 22FDX is the perfect solution for that, and you heard Ed describe that. Others are looking for best of breed technology in individual die, and whether it's our 8XP silicon- germanium or the 40- nanometer that I just mentioned, GlobalFoundries is ambivalent to how our customers want to approach it. We support both of those system-level architectures, and we do it comprehensively. 24 gigahertz for short-range, you know, curb sensing capabilities. Short range, medium, long range and imaging in the 77-81 gigahertz category, and even for gesture sensing, the 60 gig in-cabin capabilities. All of those features are covered by our portfolio. It is not simple to deliver this. I've already talked about the fact that all of these, of course, are Automotive Grade 1 or Grade 0 solutions, but we have a comprehensive portfolio. To further that, we also know that as Ed described the changing business model, we're no longer dealing with traditional fab or fab IDMs or fabless guys. As evidenced by the announcement five quarters ago with Bosch, we have gone and met them where they sit in the hierarchical perspective on automotive designs and enabled them with design services and design enablement so that they knew how to design in a technology that previously they had fabless semiconductors companies or IDMs doing for them. As such, five quarters after that announcement was made, we have already run silicon for Bosch's millimeter-wave radar design, and they have silicon in hand that they're going through their characterization. The last area or category I wanted to address is, in fact, low power as the ultimate differentiator. Let me give it two examples of that. First and foremost, Tom mentioned in the earnings call yesterday, 22FDX+ was qualified in the last quarter. He also mentioned that this is an extension on top of what is already the benchmark for low power and integration of features in our existing 22FDX. What the plus part of this is a significant improvement in the power and performance of the transistors in the platform. It did not come from technology guys re-engineering the suite of transistors in there. It actually came from my colleague, K.C. Ang, and his manufacturing organization's control of the distribution or variation of the transistors in the line. When we recognized how much tighter they could operate that manufacturing line, we monetized that into the hands of our customers. By giving them a 20% frequency improvement, they're able to monetize that as power reductions. How? If they're operating a core at 300 MHz in 22FDX, today that takes a power supply at 0.8 V. 22FDX is capable of realizing that same operating frequency at 0.65 V. Power is a square of the voltage at which you operate. So that 150 millivolt headroom that you create to achieve 300 MHz is better than 25% power reduction for that circuit on there. That matters a lot. When you add the features on top of that, it's a truly differentiated solution coming simply as a consequence of the maturity of the billion devices of 22 FDX that Ed mentioned earlier. The second and extremely disruptive, I'm glad I'm not the first person today to have to talk about 1 picojoule per bit, but you've heard it now several times. Why do you care about that? We would take the energy of the sun to power the data centers if we don't do something about it, and that's what's ushering in, and quite frankly, GlobalFoundries is the first to offer that solution of better than 1 picojoule per bit for data transmission in a data center. It comes as a consequence of what you can do with photons and glass fibers instead of electrons and copper wires and SerDes interfaces. That benefit comes already at 100 Gbps, and as Ed talked about, as it scales to 400 and 800 Gbps per channel. That's how you start getting into the Tbps data center frequencies in there. That only gets better as that frequency goes up. Let me talk about the photonics launch for a minute. This is actually an article written for the press release that we made at the Optical Fiber Communication Conference in March of this year, where we announced it, and you see the who's who of the customer list. You know, whether these are quantum computing startup companies or the who's who of the data center space, we have very broad adoption. Question is, what's so special about this technology? I'm gonna geek out here for a minute and show you some really cool images of what is unique about this technology. Remember I talked about efficient use of R&D. We actually start with the 45-nanometer technology platform. I highlighted the fact that the best RF performance in a digital platform comes from 45-nanometer. That's where we start. We add to that an amazing suite of optical elements. In this case, it's a transmission electron microscope image of the photon detector germanium photodiode, that's an avalanche detector for the electro-optical conversion. We add to that the silicon and silicon nitride waveguides in circular patterns, running around the wafer for the phase interactions and logic computing capabilities. We add to that a truly unique solution. One of the big silicon photonics is getting light in and out of the chip. GlobalFoundries has created a very elegant solution by selectively etching silicon channels into the silicon. You can create a channel made for fit to the 125-micron fibers that you lay into that channel. One of the coolest scanning electron microscope pictures you will ever see is just above there. It shows four fiber optic channels with one of the fibers removed from there, and you see where the center of the fiber actually couples into the waveguide on there. This was really difficult engineering, but as a consequence, we now have the world's only monolithic platform, electrical, optical, fiber attach, monolithically integrated into a single piece of silicon. We're not done. We're in the process today of building both the technology and the ecosystem to be able to bring the indium phosphide laser on-chip. Most photonic solutions are off-chip, and you have to have yet more fibers coming in to bring your laser source. This allows you to metallurgically bond that laser source right in there, creating. Now you know why there were 10 guys that signed on to our press release when we announced this at OFC because it's truly a one-of-a-kind unique one, and it does usher in the 1 picojoule per bit promise that is necessary for data centers going forward. By the way, those customers weren't just there for the press release. They're all actively designing products. We have 12 customers taping out silicon photonics right now, dozens of NPIs going into our Malta facility for the ramp that will occur in 2023. As differentiated a solution as I just silicon photonics and the promise that that brings, it gives an indication of the level of innovation and commitment for research and development that we make in this space. It also proposes an important question. On the chart here, you see the transistor count for the 5-decade journey of Moore's Law. As you go further up to the right, fewer customers, fewer number of suppliers in there. Moore's Law still has its champions, right? Folks that are doing component research, looking at lots of novel, you know, technologies. Of course, TSMC is the benchmark in the industry for pursuit of Moore's Law. The question that it begs is, then who's doing the R&D for the other 75% of the market, for the 200+ applications and the 7 technology families? Who's taking the obligation to make sure they're. Now, I wish we would've had a spoiler alert during the sizzle reel because it was kind of already announced. It's GlobalFoundries launching and formalizing our GF Labs approach. I had the pleasure of announcing that in May at our Global Technology Symposium there. It is a focused and deliberate acceleration, broadening, and enriching of the pipeline of technologies for all of the markets that GlobalFoundries is serving. It's an incubator of innovation for near term and long term. Let me talk about the construct of it. There's four pillars that go into it. First and foremost, physical sciences, whether that's new materials, new devices, and advanced tooling and processes. Matter of fact, with Applied Materials, since we've launched GF Labs, we have 7 statements of work on advanced tooling capability, not for single-digit nanometer, but for the portfolio of technologies that we have. Design innovation in the last few years, and we're expanding it as part of GF Labs. We're hiring system-level architects into our company from our customers and our customers' customers. They bring the knowledge of where the market and end market applications are going and influence circuit topologies, use of AI in design, and certainly, heterogeneous integration solutions. We're continuing to invest in that space. The third pillar is the markets in which we play. Not surprisingly, they're very much related to what Ed just covered, 6G and beyond. 5G is in our wheelhouse already. We have multiple solutions for 5G front-end module capabilities across three different platforms. GF Labs is already focused on 6G and beyond. If you thought the challenges of coverage in 5G were challenging, get above 100 gigahertz and, it doesn't go around walls, it doesn't go through wood, so there's a lot of challenges that come with that, and we're spending time on that. AR/VR, data center, certainly the automotive markets. The fourth pillar of this is, in fact, the ecosystem that we build. This is not the 4,500 IP titles and the 100 people that Tom described in his overview. This is research and development ecosystem that we're creating, expanded university engagements, working with federal governments on, technologies of interest or national interest, and certainly lab-to-lab interactions. Let me actually build out the details of that a little bit. We have more than 30 partners in our ecosystem today, starting with universities. We make the shuttles or the multi-project wafers that we launch into our facilities available to the universities. We actually cover the cost of running that silicon. Why would we do that? University graduate students and professors get access to some of the finest foundry technology available in the industry. They do all kinds of crazy things. They design new circuits. They want to use it for different applications. We get tremendous insight on what our customers may be working on five years from now as a consequence of the universities engaging on it. They get access to great technology, so it's a great win-win. You see a large list of universities located with us where we develop our technologies. In the R&D and consortia institutes, whether it's IME in Singapore, IMEC, Fraunhofer, and CEA-Leti in Europe, and of course, SRC here in the United States, been working with them for years. The new part of this relevant to the signing ceremony yesterday, there's two new logos on this page. One is MITRE. It has created a national semiconductor technology center. The second one is ASIC, which is the American Semiconductor Innovation Coalition, centered in the Albany NanoTech location. Those two consortia are actually holding steering committee meetings in a few weeks that we're participating in to work directly with the federal government for the allocation of not the $52 billion that's going to fabs, but the $200 billion for research and development. Finally, in government partnerships, GlobalFoundries has been working with EDB in Singapore and certainly DARPA in the US. We're pleased to add the French State to this chart as a consequence, not just for the subsidies they're providing us for the manufacturing corridor in Crolles, but for their commitment for research and development around the FDSOI ecosystem. When you're innovating like that, protection of your intellectual property is quite an important consideration on there. Last year, we hired a third-party firm to independently assess our patent portfolio. They came back with some really important conclusions. Number one value in the portfolio for RFSOI, number one in fully depleted SOI, number silicon photonics, and number one in silicon- germanium BiCMOS technology. We weren't resting on our laurels when they made that assessment. In orange, you actually see the number of patents we were simultaneously filing in 2021. 130+ for both RF and FD, 20+ for SiGe silicon photonics. what i'd like to do now is to summarize and bring back the 7 technology families addressing the 200+ and reiterate the three core points I wanted to cover today. First and foremost, the efficient use of our R&D capabilities to cover the 200+ end market subsegments that Ed described. By year-end, more than 135 technology solutions leading to thousands of feature-rich technologies. Finally, with the launch of GF Labs, a long-term commitment to innovation through 2030 and decades beyond. With that, thank you, and I'll turn it over to Sukhi. Okay. That was quite a bit of information in the first half. That was very helpful. We're gonna do about 15 minutes of Q&A and then take a 15-minute break and then come back for the remaining of the portion. Let's start the Q&A section. Harlan, you want to take the first one? Oh, go ahead. Just speak into the mic, though. Okay. We'll have Tom and Dave here as well. Yeah. Good morning. Thank you, Harlan Sur, JP Morgan. Thanks for hosting this very informative event. Tom, during the recent earnings season, you know, we're seeing a dispersion of results and guidance. The GF team obviously drove very strong results, very strong guidance, great visibility. You guys are on the right side of that dispersion, right? While many other of your peers and maybe even some of your customers are on the other side of that dispersion. What do you attribute this to? Is it your end market diversity mix? Is it share gains, differentiated technology platforms, LTA visibility, a lot of the things that you guys just talked about over the last two hours? For those that say you aren't seeing the weakness, but it will show up in the next 1-2 quarters, what are you guys doing to cushion the company from the potential for a broader slowdown? Okay, there's a lot there. I'll take the first half. Look, let me tell you the characteristics of what we're seeing, kind of who's on the both sides of that. First, there are a number of companies that had the demand but didn't have the supply chain. That's back to this idea of having a robust supply chain. I think there's going to be an industry-wide trend, less globalization, a little bit more regionalization, a little bit more balance in how you do that. GF didn't suffer from that. We didn't miss a single wafer of output. Now, it doesn't mean we didn't have to scramble like everybody else, but because of the resiliency of a broad supply chain, we didn't have that. The second thing is really about where we play and how we play. We're pervasive. We're in every end market. You saw it this morning. When there's pockets of, you know, more weakness than others, we can offset and pick up on that. We had the luxury, as we talked about in earnings, started the year at about 25% more demand than we had the capability or capacity to service. We've eaten into some of that. I think the part that gets missed all the time is the power of market share. I cited before, you say semis can't grow faster than the GDP. Bullshit, right? You could get market share, you could have a higher content. What happens in up markets, it's hard for anybody to see what's happening in market share. Let me tell you, if you're losing market share in an up market, it comes home in spades in a down market. You know, smart mobile devices, 50% of our revenue. Year-on-year, handset volumes are down. GF's revenue is up 14%. You know, we're in important sockets with important customers. We're part of the 5G transition. Ed said, "I bet you won't find, you know, a handset that's 5G enabled without GF silicon." I'll tell you, I'll buy the phone you took apart that doesn't have that our chip in there from you because, you know, it's a pretty safe bet. Then other sockets we're winning. I think never underestimate, even in a softening of a market, if you're gaining market share, you can still hold your own in that. I think those are the characteristics of the market. David, do you have anything to add to that? How about that second part of the question? Yeah. What do we do in case we're just not seeing things? Actually, I'd build a little bit on what you mentioned. I think one of the underappreciated elements of our business is our growing single source nature or the growing single source nature of our business. You know, as you become more of a single source supplier, which means you have differentiated solutions, then you have customers that want certainty of supply, and of course, we want certainty of demand, and that leads to more LTAs. Then those LTAs, that growing LTA business, that gives us the ability to plan better, and that planning is important, and I think you've seen us deliver- Yep. on those plans. Those plans enable us to then kind of insulate our business and be able to mitigate some of the perturbations that you see in the market. For example, on the supply chain side, what have we done? Well, as we were signing long-term supply agreements with our customers, we were concurrently going back through our supply chain and securing supply. When you heard from others that they couldn't get supply, too, due to shutdown in China, due to disruptions, due to Ukraine and the Russia conflict, you didn't hear that from GF. Yep. Our ability to be able to look through the demand, work with our customers with broad end markets, enabled us to plan our business better. We're executing on that plan, and I think that's probably the single best way in which we've helped mitigate some of the perturbations in the market. No, insightful. You have a follow-up, Harlan? Yeah. I've just got a quick follow-up. I believe that the recent Qualcomm LTA extension by $4 billion is, I think it's the start of an important trend, right? Because this extension was mainly focused on your CMOS FinFET 12 and 14- nanometer technologies. These are technologies that Qualcomm could have gotten from, they're getting from TSMC today, they're getting from Samsung today, and others, but yet they've chosen to drive $4 billion of their supply to you. Seems like semi companies are focusing more and more on business continuity planning, supply chain diversification. Similar to Qualcomm, are more of your customers looking at GlobalFoundries not only as a supplier of feature-rich technologies but also as a part of their diversification strategy for their mainstream CMOS technologies as well, and is this another leg of growth for the GF team? Yeah, I think it's about market opportunity. I think there are a lot of reasons Qualcomm signed up to do more. They're already designed in this. As much as you say they could source it from others, yeah, they can go and try to redesign on TSMC's FinFET or Samsung's. Even though the Samsung GF technology was a joint launch to the industry, we've diverged in how we've added specialty to it. I think that your meta point or higher level point is really there, the world cannot continue to have such high level of concentration. Independent of geopolitical issues, there's a host of other issues, and where they have the opportunity to get a better balance in their supply chain and, you know, all things being equal, they're doing that. I think Qualcomm, they were a leader in securing their supply chain early in 2021 with us. They're a leader in getting ahead of the curve on having a, you know, high degree of balance of where they supply. When you're that big, you cannot be so dependent on anything. I think that plays to our strength, and I think that's the just like they were the harbinger of a lot of LTAs that we signed in 2021, I think they're the harbinger of what's gonna happen with where another deciding factor on sourcing is, can I get it in a more localized way with a, with a foundry that gets me some diversity? Thank you. Thank you. David, anything? No. Well said, Tom. Okay. Raji? Go to Raji? Oh, okay. Mehdi? Yes. Thank you. It's Mehdi Hosseini with Susquehanna. This is for the team, and it's very interesting since IPO, you have been able to deliver and execute, especially on the margin. What we have heard this morning is feature-rich portfolio of services products. Why not put the focus on your core competency and tell us how the revenue mix is driven by these feature-rich or platforms rather than focusing on auto or smartphone? I think you have a lot of core competency captured in a single source. What does it not make sense we focus on feature-rich mix and the details rather than debating smartphone units? I have a follow-up. Sure. I'll take that one. Yeah. Take it, Dave. I mean, we're not debating. We're choosing to report our business. Go ahead, David. Yeah. Let me maybe take a stab at that one. You know, it wasn't that long ago that we went IPO, and we actually had the same debate internally. As we were having this debate, the reason we wanted to report by end market is because everyone develops their forecast, and it starts with the end market. What's happening with the underlying market and the different segments? You can build up your forecast that way, and as you saw from Ed's presentation, you take that forecast, you figure out which portions of those markets or which applications in those markets do you wanna play in, what technologies do they require, what can you build in your product suite to be able to be differentiated, and then you report, of course, back out on those end market applications. Now, I don't wanna spoil the second half of the presentation, but we are going to give you a view of how our business is being, becoming more diversified and how it's becoming more differentiated over time. You're gonna see some pretty good nuggets here in the second half of this presentation that'll address exactly that point. A quick follow-up, and maybe this is covered in the afternoon, but in terms of the wafer supply, are you gonna continue to buy the wafer with the substrate, or is there a different strategy looking longer term, especially as you silicon photonics and germanium and so forth? Sure. I think the question is around, are we planning maybe to be more vertically integrated with regards to our wafer supply? Right now, you know, as I mentioned, we're growing our wafer output from about 2 million wafers in 2020. We're increasing capacity to where we can deliver more than 3 million wafers in 2025, a good mix of those are associated with RFSOI, FD-SOI, and increasingly SiGe and GaN and other technologies. Right now, we have great partners with long-term supply agreements across all of those substrates. As I mentioned, as we were negotiating those LTAs with our customers, we were concurrently going back to our supply chain to secure that supply. Just let me build on that. A great example of that is GlobalWafers, an SOI wafer supplier for us. They're expanding their campus, investing about $600 million in St. Louis. $200 million of that to help fund that is prepayments from us. We're doing the same type of thing with them. Our strategy right now is to work with those partners like our customers work with us and secure our pipeline and not try to get ahead of ourselves with integrating more elements. That's exactly right. They're gonna be a big RFSOI provider for us in the future exactly out of that facility. Yeah. There's one from Raji here. You took the wrong seat. Yeah. Thank you. Raji Gill from Needham & Company. Just a question on your long-term supply agreements. It was discussed a little bit on the earnings call, but you know, there's been several companies that have quoted you know, charges from breaking long-term supply agreements. We had Qorvo last week. We had Nvidia talk about even larger LTA charge. I wanted to get a sense from you some of the mechanics of the LTAs. If a customer comes to you and says, "We wanna reduce the volume," for whatever reason. I'll start. How does GF react in that situation? How are you able to swap out that order? Can you swap it out on a one-to-one basis? Can you shift capacity either within existing customers or shift capacity to new customers? So I'm just curious on your fungibility, because I think that's gonna be an increasingly important topic if there is a deceleration in demand in some of these kind of key markets. We always start with the fundamentals. When we said about these long-term agreements, it wasn't to shift all the risk from one party to the other. It It was about partnership that the foundries didn't want to go into the next softening and have to bear the brunt of all that. These contracts. By the way, you notice people doing that, they take these contracts pretty serious when they're taking accruals for it. As a customer comes in, say, they say, "Look," and we haven't seen a lot of this, "Hey, I'm a little bit soft for a couple of quarters. You know, how can you help us?" We have a rule, we call it do no harm. If we have someone else who could take that capacity and the economics are the same for us, do no harm. The partnership agreement with them wasn't to, you know, hey, let's sell one wafer twice, right? It was about making sure we had certainty and our customers had certainty. The first is do no harm, and that's mostly what we've done. We've found ways. The way you do that is what you're talking about, is how fungible. It's easy when you can just supply to another customer on that same node, but what if it's, you know, you need more 40-nanometer instead of 55-nanometer? You know, the good news we have is we have pretty good fungibility, but it's not 100%. Sometimes you might have to use 1.2 wafers to create one wafer. In the do no harm, then we'll just ask to be kept economically whole on that. There's a myriad of different scenarios that play out on what's the hedge and how we do this. The overarching is do no harm. If we could sell it somewhere else, we do that. If we have to fund it and we don't get the same economics, we can reduce the kind of the damage or the cost by that, just what is to keep us neutral economically. What would you add to that, David? I think maybe just a couple details building on top of that. Number one, we built our manufacturing to have fungibility, to have flexibility, not only within a site, but also across sites. If you look at Dresden versus Singapore, we have overlap on technology platforms that are dual qualified, and so you can actually, you know, shift production from one facility to the other. Not only within a facility, within a corridor, but also across sites. Then at a high level, kind of big, rough, and tough number, you're talking about flexibility of probably like 25%. About a quarter can be kind of flexible between a customer that wants to wiggle a little bit with their demand and maybe replace it with another customer and an end market. We've got some inherent design, by design, built-in flexibility. Then the second thing that I would say is that when you think about some of the movements that you've seen in the marketplace, maybe some that have been publicly announced, you're talking about movements that are less than 10% of an LTA. You're not talking about a, you know, the entire LTA, you're talking about customers that are trying to move a small little portion of that LTA. When you're moving a small portion of an LTA and you're oversubscribed, like we're gonna show you for 2022 and 2023, and you have built-in flexibility, you have tremendous opportunity to actually remix your business to a higher, more accretive margin to deliver better than planned, and that's exactly what's happening. Look, the positive of this for those customers, they're becoming a lot better at planning their business, right? In the past, they didn't have to worry about it. In fact, forecast was, you know, whatever. Now they're becoming a lot more educated on their forecast. They're gonna become better companies because of this, because they wanna make sure that they're. Just remind me again, if the company- Use the microphone, please. Yeah. Sorry. Just remind me again, if the company were to break the supply agreement, there's a charge, right? That they have to pay you. Do you have that in a separate bucket in terms of how you're recognizing that revenue if there are charges that- Yeah. Let me give you some more details. Look, the contracts are fixed price, fixed volume, take or pay agreements, and nearly all of them, all the ones I can certainly think of, actually come with advanced funding, so that's either access fees or prepayments. Those will sit on our balance sheet. They'll be ratably recognized based upon either just the passage of time and units or based upon some milestone. We don't currently have any material agreement, in fact, I can't think of an agreement off the top of my head, that we actually have a customer in breach. Okay. We haven't actually recognized anything through our P&L associated with any of the changes that you're talking about, so I wanted to be clear on that point. Now, to the extent that we would renegotiate an LTA in a big way or that there would be a breach and it was material, we would spike that out for you. We'd be very transparent in our financials. Thank you. Currently sitting on the balance sheet Sorry, last question before the break. We'll take it from Vivek. Thanks very much. Vivek Arya from Bank of America. Thank you so much for a very informative set of presentations. It's good. I had two questions, Tom. First is the dependence on the mobile industry, right? I mean, it's obviously the most pervasive electronics device, right? A lot of benefits and built-in kind of upgrade potential content. I get all that. But when I look at your sales, it's almost half exposed to mobile devices. If I just do a simple ballpark of, you know, your LTA, all right, $16.6 billion, so that's over 60% of your long-term supply agreements. When I look at the contract you signed with Qualcomm, you know, they will be over 20% of those LTSAs, right? They were 15% of sales last year. I'm just kind of, you know, want to get your perspective that this dependence on the mobile industry, what are kind of the pros and cons, of that, and does it expose you to more kind of seasonal variations, you know, customer concentration risks, et cetera? I'll make a couple points and then David, I'm sure will make even smarter points. First, when you look at our revenue as a percentage of the pure-play foundry on handsets, you know, we're not disproportionate on that. You know, you can't be a big player if you're not in that market. I think for us, it's as we grow these other end markets and they grow, you'll see the percentage of revenue in that smart mobile device will come down even as we grow. The key is not taking down what we do in smart mobile devices, but growing those other markets. Now, later in the presentation, you'll see some of that remixing of our business. For us, if there's differentiation in a smartphone that needs our... We think that's still a strong market to be in, and as long as we're winning new sockets, you know, we're not, you know, leery of being in that business. David, what would you put in there? Yeah, let me just throw out some more details. We talked a little bit about this in the call yesterday, the earnings call yesterday. We grew our Smart Mobile business 14% year-over-year. But if you actually break that down and you deconstruct it, what you'll see underneath is that front-end module was relatively flat. In fact, we expect it, the front-end module portion of that, which is about half of the Smart Mobile business, we expect that to be pretty flat sequentially Qo Q. What that means is that we're growing in the 5G segment, which is accretive to us. 5G is still growing year-over-year. In fact, 5G year-over-year is growing to the tune of more than 30%. I think the last number I looked at was around 35%. That growth in the 5G portion of the total market, that growth, which is heavy GF- attach, heavy GF accretion, that's offsetting what you're seeing in the 4G, 3G, and other markets. That's keeping the front-end module flat. Then you say, "Well, then how'd you grow 14% year-over-year?" Well, that's in everything else around it. We're winning shares. This goes back to Tom's comment earlier, which is we're winning share in all the other sockets around it. As we win that share, we can produce growth. RF, you know, front-end module, relatively flat, the portions around it gaining share, which means that we can actually still grow year over year, which is our expectation throughout the entire second half of this year. Then the last point, you talked about Qualcomm, and you said it's all smart mobile device. It's not. Our long-term agreement with them covers much broader market segments than just the smart handset. Makes sense. Just a quick follow-up. The U.S. and the EU Chips Acts, you know, what do they mean for GlobalFoundries? I think I sort of get the positive aspects of them, and they are very important. I wanted to understand the other side of it. Can it create more competition for you? You know, if Intel starts to get a lot more money, they start to establish foundries, which they then have to fill up. You know, they are trying to buy, you know, Tower Semiconductor. Do you think that the competitive landscape outside of the China-Taiwan region will be different in the next 3-5 years than what it is today? 3-5 years, no. I mean, I can't say what's gonna happen a decade from now. We spent 10 years to create a global footprint. You heard it here first. You're gonna see how difficult it is to create in a new part of the world everything you've taken forever to build somewhere else. You'll see it in Arizona, you'll see it elsewhere. The Tower Semiconductor acquisition by Intel is still far from very little intersection point from where we'll, you know, kind of bump into each other in our customers' lobbies. By far, you know, Intel's thrust is gonna be in single-digit nanometer. That's what they're investing in Ohio, that's what they're investing in Germany to go do. What I really think is gonna happen is that the same capacity we put on, but we'll be putting on in a different distribution in the world. These co-investments are just really to create more supply chain stability. You know, our play in France was again, economies of scale, capital efficiency, build at a site. You know, our Dresden location, we may someday announce we'll add to that with the European Chips Act, but we'll only do it, customers need it's on our differentiated technology, and we believe there's long-term viability to that. I think for us, it just creates the opportunity to be able to invest in our global footprint in a more healthy way, but never ahead of ourselves. Thank you, Vivek. We're gonna take a break, guys, now. Thanks. We'll come back exactly in 15 minutes, about 10:55. All right. Well, hopefully everybody has a seat here. We're ready to get started here. Well, let's start the second session here. We're gonna start off with our Chief Commercial Officer here, Juan Cordovez. He's gonna give you a very good insight into all of the customer activities that he and his team run, and we'll go from there. Juan. Good morning, everybody. Is it good? Is the audio okay? Excellent. Thank you again for joining us today, and welcome to the second half of our first Capital Markets Day. It's my pleasure to address you today. As Suki mentioned, my name is Juan Cordovez. I'm the Chief Commercial Officer for GlobalFoundries. I'm honored to be here. To launch the second half of the day, I wanna go ahead and anchor on our customers, how we create these customer relationships to evolve into partnerships. As I described earlier, we will launch by anchoring on our customers. We design our go-to-market strategy, the journey our customers go through, by really understanding our customers' unique needs. Because these needs are unique, we have to first think and act differently to serve these unique needs. With that said, allow me to give you a brief view of how we act and think differently and serve our customers. As you'll see from the left, one of the core design points of our go-to-market, as Tom mentioned earlier, is the fact that we serve our customers locally across all the end markets and across all the fabs. That means that they'll have this continuous interface no matter where they're an automotive player, an FDX designer. They know that they'll have a continuous end-to-end integrated journey with GlobalFoundries. How do you get that going in a way that's fast, agile, and insightful? We call this the concept of ownership at the edge. What does that mean? Let me do that through example. If you need 500 extra wafers for automotive at GlobalFoundries, you do not need to fly 8,000 miles to Hsinchu and ask for that favor. If you're working a commercial deal and you wanna understand whether we can arrange a specific agreement, you don't have to set up your alarm clock to wait until Seoul wakes up and gives you a finding. By creating that empowerment at the edge with the right commercial resources and the right technical resources, you can really create that higher degree of intimacy, that higher degree of connectivity, and then leverage that to make customers become partners. This concept of integrated delivery, both commercial and technical at the edge, is I think one of the differentiators which has allowed us to develop those partnerships into the results you saw earlier. Now, another element to consider is the fact that who buys semiconductors and the value chain overall has evolved. If anything we've learned over the last two years is that people have to connect in a more deep way in order to build value together. No longer can you have these silo environments where you just have a supplier-customer relationship. Not only will that expose you to chance, it also doesn't allow you to really fulfill the opportunity that exists by partnering as one. We'll talk a little bit more about this concept of purpose-built engagement models coming up. This approach, through the value chain, creates our go-to-markets results, which we will detail in proof points coming up. Before we move on, I wanna direct you to the right-hand side of our chart. At the end of the day, we are the partnerships we develop. The idea that our worth ultimately comes about from these customers trusting us with the future of their company and designing sole source and single source products with GlobalFoundries. We take that responsibility very not lightly, but with tremendous honor and respect. Now, let's talk a little bit more about our customers and where we serve them. As described earlier by Tom, a big part of what we do and a big part of our value is our global footprint. That global footprint is enabled and strengthened by a globally diverse set of customers. What you see in these charts is how we serve them across the different end markets that we focus on. What you see here is that we have a broad deployment of field sites, again, with ownership at the edge that serve these customers. That when somebody says, "Hey, let's solve this design closure issue, design timing issue, DRC issue," instead of launching a Zoom, you can meet at their desk, at their site, whiteboard it and solve it. The speed and intimacy that you can derive from that type of interaction is a differentiator. A second element that's also highly important is the idea that these local regions and ecosystems have their unique strengths. You wanna exploit those strengths, and you wanna build your go-to-market focus to exploit those strengths and bring value. You'll see that Europe, as we know, a big part of automotive IoT is centered as an excellence center in Europe. You'll see that across automotive and IoT, 70% of our business is in Europe. We all know that the US is Smart M obile device center of excellence, the flagship of the world. You'll see that similarly, we have commensurate market share in that market. In Asia, you see a really great story of diversity. About half our business being smart and mobile, the other half being IoT, communication infrastructure, and data center. That balance gives us strength, and by exploiting and investing in those local ecosystems, we can develop the intimacy that will make us much more able to translate the market need, the customer need, the technology requirements that then, through Gregg's organization and feature-rich solutions, ultimately creates the value that GF builds. Now, one of the key areas that I want to describe, and you'll see this in the bottom row of the slide, is this idea of ownership at the edge and intimacy at the edge. We serve our customers in their local language. As a person born in South America who came to the U.S. at 19 and had to, like, look at an SAT in English for the first time, I can tell you that having discussions in a foreign language about technical topics is tough. I translate Spanish to English, my counterpart translates English to Japanese, and then acts. It's very, very difficult. If you create the right technical expertise locally, you can drive power. How do we do that? Something I'm quite proud of. If you look at the median distance between our field site and expertise to our customers, sub 7 miles for our top 12 customers. That's a big deal. We serve automotive out of Munich, not Amsterdam. Israel out of Israel, not Amsterdam, as examples. Now you're likely asking, what exactly does this mean in terms of the motions that you carry across the sales horizons? Let me describe that in a little bit. What you see here is our mission and our path forward. One of the reasons my job, my team's job is really fun is because you get to work with customers across a variety of sales horizons. From that really critical and important PO chase to fill the fabs with the highest quality demand that's ultimately super tactical, to working with the customer, their OEM integrator, and creating new value through new technology partnerships, through new capacity enabled with customer funding, with, in cases, governmental support. Big-ticket items that drive a lot of our business that require innovation and creativity. Our team manages all of that. Now, how do you do that in a way, kind of going back to the topic at hand, the idea is that as you drive these different types of sales delivery motions, how do you ensure that you have the precision of action, the precision of outcome, so that you can drive with strength and deliver the right rigor that is needed to ensure that our current quarter financials are delivered through the right demand capture, the next generation business is captured, and so on and so forth. We define these sales motions that you see on the right-hand side. Right? On the near-term horizon, laser focus on creating a superior demand capture that includes fulfilling our LTAs. As we drive in a currently oversubscribed environment, how do you select that right business, the right end markets, those right partnerships to offer your precious capacity to? Remixing your capacity so you create more value for your customers, for the industry, and for ourselves. As you drive to that next horizon, how do you ensure that you're bringing vibrant, accretive business into your factories? Right? Selecting those high-growth, secular, strong end markets that give us a diversity that makes us stronger, alluding to the question earlier. Then finally, how do you do all of that with the right level of demand certainty, where your customers are betting their future on you are betting your future on them by putting the right investments in place, the right capacity access, and doing so in a way that not only binds you in a contractual way, but that forces you to develop that next layer of intimacy to what is the end market, to what are the different customers and end sockets, OEMs. Through that dialogue, you get a level of precision of what your partnership has to deliver that really, really strengthens both your technical and commercial collaboration. Now, you do that well enough, not only will you have full fabs, but you'll be looking at how do you build new capacity, again, in partnership with our customers. Now that we've seen the sell in motion, let's look at hard data to put all of this into context and show its value. As both Tom and Ed alluded to, we drive our business with a concept of creating sustainability through profitability, certainty, and durability. These are the key tenets that in our view, if our customers and ourselves join in these parameters, we can create win-win outcomes. What you see here, first on profitability, is that we have been able to renew a large set of LTAs with our customers, and we're doing so at about 20% on average price improvement over the LTAs that we were happy to show you last year during the IPO roadshow. Beyond that, the broader design win motion is delivering over 5 points of improvement of gross margin above our long-term model. Moving on to certainty. As alluded before, 75% of 2024 booked. 2023 oversubscribed. 2024 at 75%. One of the beauties of this is that our customers are eager to load us and bring more capacity for these GF markets that are enjoying disruptive secular growth. They are putting their balance sheets and their money where their mouth is by supporting through contribution into this capacity building. $1 billion since the IPO roadshow, almost $4 billion overall. Then finally, let's talk a little bit about the concept of durability, remixing our business so that we serve those right markets. You'll see almost $4 billion of auto and IoT design wins, and they're effectively all sole source, first source. This is an example of delivering a well-balanced go-to-market strategy in partnership with our customers that gives them, ourselves, and frankly, our investors strength, visibility, and resilience. Now, with that in mind, a lot of you have asked questions about LTAs, and I'd like to give you a little bit more of a view. Now, many of you have asked, "Hey, I've seen a lot of LTAs done last year. Is this a one-off, or is this part of a new approach that we are gonna be using to create a more repeatable and more predictable way of doing business?" Let's have the data do the talking. What you see here is that we see tremendous continued momentum on LTAs. You'll see on the far left what we announced during our IPO roadshow, about $20 billion of committed demand, and the net is the following. Without a doubt, we're seeing tremendous customer appetite for more LTAs as they see them as valuable as we do. They see this as the mechanism by which we can grow our partnership and they can grow as a business. These LTAs and the certainty of supply they offer, coupled with the right technology, are the currency for growth. What you'll see in the chart is that the rate at which we're extending the LTA size is higher than the shipped revenue, meaning that the total amount of net demand that is committed to GlobalFoundries is increasing. We're very, very proud of this, and again, I wanna emphasize that not only do you have this kind of binding partnerships as linked through an LTA, how it pushes and forces you to collaborate more deeply across supply chain, technology interlock, market dynamics are the real value creator that not only gives you that certainty of supply, but I think it gives you the intimacy to collaborate and adjust. I think that is a very critical element. Now, as we've looked at some of these selling motions, what I wanna do is take a pause and anchor back into the customer. We talked about how different customers are coming into light as the value chain of technology delivery evolves. How are we evolving with it? How are we supporting acceleration of that evolution? This takes us to the concept of different agents in the semiconductor value chain exist. How do we create purpose-built models to ensure that they are successful, to ensure that they have the tools that they need, and more importantly, to create opportunity for us, for them, and for our end customers? What you see here is the three key traditional customer types, fabless, IDM, and OEM, but hey, they are evolving. I wanna describe in some detail what GF is doing to accelerate our value capture and value creation. Let's start with fabless, right? The fabless world is very, very interesting, and what you see now is that based on the GlobalFoundries' feature-rich technology strategy, we're creating opportunity for fabless players who traditionally cannot compete for feature-rich solutions with IDMs because of technology. We have unique technology that allows them to go head-to-head and open up sockets and open up share gain that was traditionally not possible. Now, for that technology to really create disruption and enablement, you have to provide the right design enablement and design support for these companies who don't have 2,000 to 3,000 people waiting to do design automation to consume that technology, to unlock its value, and to fulfill their design ideas into silicon. The concept of ownership and support at the edge helps us, and our rich history of design enablement expertise comes to bear to provide that acceleration. Now, technology, design, all this stuff, without access to the currency of capacity and capacity certainty, nothing happens. It's not a one-two punch, it's a one-two-three punch that I believe again makes GlobalFoundries unique, and the feature-rich design point of our go-to-market ultimately unlocks value creation and opens up sockets that traditionally fabless could not access. Now let's talk about IDM. Tom talked about the fact that the traditional IDM model where 100% of what they built was done inside is dead. IDMs are dead, but long live IDMs. The hybrid model has been adopted. Now, this is another environment where we're seeing evolution. Hey, IDMs have been sourcing from foundry, nanoscale CMOS, or call it scaled CMOS, for a long time. This is not a new thing. What's happening now is rather unique. I think what they're seeing now is that some of us, like GlobalFoundries, have created sufficient technology differentiation where for the first time they're saying, "Hey, I actually am gonna use that specialty technology as opposed to building it in-house, as opposed to doing feature-rich style." They are seeing the right differentiated technology as an ability to complement their roadmaps and not have to do it all in-house. That is new. More important than that, what they're seeing is that if you can then partner with a company that has a global manufacturing footprint, you can then have both that complementary roadmap, that access to scale, but you can have access to scale where it counts. You can use the global footprint of GlobalFoundries as a competitive advantage. You think that all these European companies that are building automotive are gonna depend on something that's being built, you know, four miles away from military fire drills? Probably not. They're gonna be using global footprint from companies that are established, that know how to multi-source our technologies within our global footprint to provide that resilience, that predictability, and that strength. Because GlobalFoundries is uniquely positioned across these three geos, we can do so for every IDM in the world, and we're doing so like that. I'd now like to talk to you a little bit about OEM. OEM is really, really fun. Similarly to IDM, they've been doing scaled CMOS and nanoscale forever with foundry. What's happening now, and they learned this last year, is that the feature-rich content is the one that's enabling AR, VR, display sensors, and that technology is not something they've traditionally been focused on through their own design, and they know they have to get into that. They recognize that you're gonna have to have far higher degree of technology alignment with these feature-rich solutions to allow them to architect their end user experience in a much stronger way, to unlock the value of that. When you do that, you also similarly will drop on the themes of having the access to the right geos and to having the right access to the end-to-end supply visibility and resilience that is required so that 2021, 2022 does not happen again. Now, with that in mind, let's talk at some real proof points that give you a sense for what we're up to. I have three here that I'll show you, one per each of the customer segmentations models. I'll talk about Qualcomm a little bit. I know we've talked about it a lot, but as a person that kinda sorta was involved in that deal, I'm very proud of it. I wanna talk to you a little bit about it. It's very simple. Qualcomm is a world leader in 5G. They are doing really great work to diversify, and you see what they're doing with connectivity, both in the car as well as in IoT, and they dance with a lot of people. The size and scale that they have, as Tom alluded to, requires that they ensure they have the right partnerships for people that have stability, people who can execute, and for people who are willing to partner with them as they grow up in their story. The GlobalFoundries value proposition and the Qualcomm needs are an ideal fit. Our commercial strategy and their business priorities are an ideal fit. As a result of that, we were able to make this agreement, which includes them supporting our expansion of our U.S. multi-fab. I'm very, very proud of that. Now, let's move into IDM. I love this example because it gives you a sense for the other selling motions in play and specifically to the question asked earlier, how do we ensure that we have the right diversification of customers? You'll see a half a billion dollars reservation, and the more important element is that it's seven years long. It tackles market segments that are connected by one thing. They require security, embedded processing, and geo footprint. That MCU technology that this company has awarded to us as single source allows for work in data center with embedded controllers, in the data center around secure boot, secure root of trust. The stuff that you're not putting in a conflict zone is built by GF. The extension of that MCU product line to the Connected MCU creates tremendous opportunity in IoT. This is always almost 36 products, 36 products that have been taped out to the company and gives you a sense for that broad and pervasive deployment of semiconductors and our participation in enabling that traditional IDM to work with Foundry for the right technology, for the right diverse product groups, serving the right end customers. Finally, I wanna talk a little bit about OEM. This one is a really fun one. Last year, we saw a lot of supply issues, and you had a very clear choice. Do you get super tactical and fill in gaps, or do you get strategic and fill the gaps that talk about a broader, deeper, more insightful collaboration? Do you use the crisis as an opportunity to develop intimacy? I believe we did that. With this very, very large OEM who prefers to not be named, we worked a deal that from a tactical basis increases units, incremental to their baseline of 300 million, which is a lot of millions. The more interesting piece here is what we did on the strategic side. We recognized that that company was awarding designs that were critical and single source on a yearly basis, but ultimately, the link together was GlobalFoundries and our differentiated solutions. Instead of that process that often talked about gaps of understanding, gaps in capacity, gaps in alignment, we created a partnership deal with them so that our capacity for these differentiation solutions is available to them. Then in turn, they partition that capacity to their suppliers in a way that completely takes away that completely obfuscated communication chain between the selection of foundry, design of product, and the award at the OEM socket. The level of transparency to the product, to the socket, to the timing, and its allocation has now been completely closed. We're very, very proud of that. They have that access for multiple technologies across multiple geos. It's not a one-time deal, but really a platform to scale. In my view, this is a new engagement that will be a proof point of how the world and the new value chain will scale into the future. I'm incredibly proud of it. Now, to give you a bit more perspective, allow me to give you an example of a specific customer where we go a little more into our commercial strategy, our go-to-market, and see how we've realized the partnership. Before I do that, I wanna give you some proof points on the specific elements we just discussed around customer concentration, customer type, and end market. This will give you a sense of a report card of how we're doing. You'll see that on customer concentration. From 2020, 2022, 2025, 20% improvement, meaning that we're less reliant on the top customers. You'll see on customer type that similarly, we have a far improved balance with a high growth of OEM, albeit starting from a relatively modest side. Finally, you'll see on the market size that we are no longer as reliant on markets that are saturated. You'll also see that while we did land the 5G transition, huge growth in automotive, huge growth in home industrial IoT of about 50%, and a doubling of our communications and data center business. Now, if you look at a specific example of a customer, you'll see the type of intimacy we've been able to develop with such a partnership. The shared investment of capacity expansion, which is the new economic model Tom talked about. You see tremendous skin in the game from the customer, both in investment and in demand certainty. You'll see that now we're working with OEMs and this customer to ensure that knowing that we wouldn't win the OEM together, they probably wouldn't win the OEM together. When you work as one, you succeed. You drive that through the diversity of end markets that we've discussed and through geo footprint. As you see on the right, 8x growth in auto from 2020 to 2025 forecast, a huge growth in industrial, and all of that done from what started as a single geo relationship now to a 3 geo relationship. This is a hallmark of the way that we do business. Now, you will ask, "That's one example. Tell me how you are doing." I'm very proud to show you how we are winning with the winners. You'll see that for these key end markets that we tackle, we're working with not the top three, but the top player in their segments. You'll see that these relationships are also a single source. You'll see how we are the primary foundry for either the battleground or overall. Not only that, we ensure that we underwrite those partnerships with the right long-term agreements and when it's needed, the right co-invention and technology co-optimization. This gives you a sense for partnership across the tactical elements like PO capture, all the way to the more valuable end market alignment, socket alignment, technology alignment. This is the strength that we can provide through the partnerships we've built. To leave you, I wanna give you a few nuts. Who are we? We are a team that's deployed in the field with ownership at the edge to drive that intimacy and clarity. We are a team that is driven by win-win outcomes through profitability, certainty and durability. We are a team that believes that customers exist, but partnerships are rare, and it is our goal to live those partnerships across the value chain. This is who we are. Thank you very much. It is my distinct pleasure to invite the world-famous K.C. Ang to the stage, our Chief Manufacturing Officer. Yeah. Thank you, Juan. You just introduced me that, yeah, I'm the man that deliver quality wafers to our customer on time. Okay? Thank you, Juan. Yeah. In this section, I really like to cover five main points with all of you. First, I will talk about the global manufacturing footprint, which includes the latest collaboration that Tom talked about in the morning with ST in France. Our manufacturing performance, our cost reduction efforts and the productivity improvement, and also our health and safety report. Also, I'll show you what is the progress on Singapore site on new fab construction with a short video. With that, let me go to this point here. This is our current manufacturing footprint. As you can see from the map that we have five sites strategically located in U.S., Europe, and Asia. Let me start with the U.S. fab. Malta is our most advanced fab running FinFET, RF, and silicon photonics process. this fab is currently capable of 400,000 wafers per annum, and Burlington is one of our 200-millimeter fabs. Lots of innovation from this fab. Major processes are high performance SiGe and RF processes. We have made significant improvement in productivity and yield in this fab, and currently the capacity of Burlington is capable of 250,000 wafers, 300-millimeter equivalent. Next is our East Fishkill fab, which has 155,000 wafers capacity with major production in our 8SW and high performance CMOS. This fab, as mentioned by Tom earlier, that is in the transition to become onsemi by end of 2022. All the three U.S. fabs are classified trusted foundries where we have business relationship with U.S. government with a long-term loading commitment. Let me talk about Singapore site. Singapore, which is our largest site of production today. Singapore has both 300-millimeter and 200-millimeter with a combined 1.1 million wafers per year output. Singapore site have many feature-rich technology in the area of RF, BCD, non-volatile memory, low power to support wide range of customer and products that Juan talked about this morning in the market segment of automotive, industrial, IoT, medical, mobile, and PC. Finally, our Dresden fab, which is our fastest growing fab. Since last year, we have been ramping from 500,000 wafers per year to 680,000 this year. Dresden is where our FDSOI processes was first developed, and now the fab also running 28-nanometer technology and 14-nanometer, as well as 55 BCDLite in conjunction with the Fab 7 in Singapore site. Let me conclude this foil by saying that we executed our manufacturing strategy very well. In the last few years, our modular capacity expansion is also working very well. As most of our business you heard this morning is all about single source, dual sourcing from different region of GF fabs is extremely important for our customers business continuity planning. Our customer can now get the same product, same quality, same yield from Singapore and Dresden fab. Especially automotive customer that they love to get from Singapore and Dresden for business continuity. We can now provide Singapore Dresden, Singapore Burlington, Singapore East Fishkill for the dual sourcing capacity for our customer. We also created global center of excellence, where we can benefit the cross-sharing and global resources to improve our work excellence in all area. Let me move to how our global manufacturing footprint looks like beyond 2023. As you can see in this page, we added Crolles, and then I removed East Fishkill since they become onsemi starting next year. Despite its onsemi, we continue to get 120,000 wafers from them in RF technology and high-performance SiGe. Malta and Burlington will grow the capacity respectively, and Malta will still focus on 12-inch fab with more feature-rich technology in embedded memory, RFSOI, and significant silicon photonics by then. Burlington fab, as Greg pointed out earlier, this fab will focus on the wide bandgap technology development for gallium nitride technology. Singapore site will grow with the additional capacity coming out from our new fab, and this will bring Singapore site to more than 1.5 million of 300-millimeter equivalent. Singapore will continue to provide wide range of products and customers with a feature-rich technology. Dresden will grow to 850,000 wafers per year with more 22FDX, 28-nanometer at the same time doing the 40nm eNVM and 55-nanometer product. We now added Crolles, as you can see on the chart there, and this site will focus on 22-nanometer with a full build-up capacity of 360,000 wafers per year. I will further explain Crolles fab in detail in my next page. We will grow our total capacity to more than 50% through 2025, and we will continue to grow our global footprint by utilizing global talents, dual sourcing offering to our customer for the business continuity planning. Besides Singapore Dresden, Singapore Burlington, Singapore onsemi, we will expand Dresden, Crolles on 22FDX, Dresden, Malta, and in future Singapore, Malta. Let me move to Crolles fab. Now, as you can see from this foil about the layout of the Crolles fab. But here I want to repeat what Tom said this morning. Two points he say. First we added our capacity in a capital efficient way. We have grants from the French government and customer prepayment. With this additional capacity, plus the expansion of Dresden, we will be growing triple capacity from 2020 to 2028. Let me explain this collaboration model from the operation and execution point of view. Here you can see the diagram of our existing ST facility in Crolles. In the red shaded area, which is ready cleanroom, we are going to bring in 22 units to form a pilot line for us to do technology transfer of 22 FDX starting next year. When the blue area, which is the clean room by modular expansion, we will build capacity and start production towards the end of 2024 and then ramp in 2025 to the maximum capacity of 360,000 wafers per year. We are leveraging the existing facility and adopting the modular capacity expansion approach. The facility will be co-managed by ST, and it's actually effectively to me is an extension of our Dresden fab, where GF is responsible for 22FDX production ramp and new improvement. Therefore, the on-site management team will be supplemented by the Dresden expertise. On the other big component is the cost savings with ST on depreciation, fixed and variable costs, including the power usage. Let me move to the capacity expansion roadmap, and this kind of summarizes what I've said earlier. Let me explain the color. The purple color is our existing capacity. The blue color is the capacity expansion within the four walls, and the green is under construction. As you can see from the chart here, Singapore will grow to 1.2 million wafers. Coupled with the 200 millimeter of 370, Singapore will have a volume close to one point or slightly over 1.5 million wafers per year. Dresden site will be 850,000 wafers per year. Crolles, as I mentioned earlier, that will go to 360. All this capacity do not include the future expansion plan such as Malta fab expansion and further Dresden expansion, which we mentioned earlier. I just want to emphasize the investment criteria here that we put together. Customer commitment, government grants, and cost-smart technology approach that allow us to ramp the fab in a fast manner. Let me talk about the manufacturing KPI. Here, if you see from the chart here, we are actually doing very well in our manufacturing KPI. On the customer side, we continue to execute well in the new prototyping of product. Our first time right success of more than 95% helps the product to launch to the market on time. Our yield KPI is excellent at 99%. As Greg talked about the automotive this morning, we provide automotive quality to our auto customer. It's not easy because all our fabs are IATF 16949 certified, and all the fabs are subject to VDA 6.3, a very stringent audit from our auto customer. We also executed our dual sourcing strategy very well, where we have already 10 customer product qualified in Singapore, Dresden, Singapore, East Fishkill, and Singapore, Burlington. On the business side, I have to say that I'm very proud that manufacturing did not miss a beat on production. Shipment to customer in 2021 was 2.4 million, and this year we probably will get to 2.6 million, and our on- time delivery is 99%. We also drive very hard on maintaining our cost by achieving $250 million saving per year, which I will have a separate chart to show you on the next page. Now, as you can see from this chart, the scale drive cost lower. Here you can see that we increased our shipment by 28% from 2018 to 2021, while the cost of goods sold per wafer reduced by 35%. As we achieve the scale, we will continue to increase our capacity at the rate of 10% year-over-year in a capital efficient way of expansion and will continue our productivity improvement. On the cost side, we will continue to push for cost- saving activities through the global pricing, global benchmarking, and all the engineering projects. Now let me talk about the productivity. We think there is a big opportunity to improve our further capacity by improving the equipment performance uptime through our 1GF across site as well as external benchmarking. This productivity improvement plus the process optimization, we think we can easily get additional 5%-8% additional capacity. For the input side, let me focus on the two biggest spends in our factory. One is the equipment maintenance, and another one is our indirect materials, such as gases and chemicals. On the equipment maintenance, we have already moved from the time-based PM to the usage-based PM, and we like to progress and implement more and more predictive PM using big data, FDC and AI. The predictive maintenance will give us a better equipment uptime, better usage of equipment consumable spare parts, and hence will lower our maintenance cost. On the material side, we will continue to source for alternate chemicals, gases, standardization, optimization of the usage across all the sites. We also plan to do a lot more chemical on-site generation and blending chemicals like ammonium hydroxide, photo developers to save our cost. More importantly, we are using big data and AI to optimize our usage. With the productivity improvement and cost reduction, I'm very confident that we will continue to drive towards a competitive cost despite the headwind that we see in all areas. Let me go to the new fab in Singapore. If you look at the chart and you compare the actual building to the architectural drawing on the bottom right corner, you can see the admin office is still under construction. But more importantly, the two buildings, utility building and the fab inside the cleanroom is pretty much done. Right now we have power, water, chemical, gases are all delivered in there. Now, despite the COVID-19 pandemic, where many countries were locked down and the numerous supplies and logistic issue, we managed to move the first tool into the cleanroom one year after our groundbreaking. I tell you, I built so many fabs. This is one of the best I've ever seen. That they have great safety and quality record between the budget, and most importantly, meet the schedule. Now let me show you a video on the progress of this fab. Video, please. Yeah. As of yesterday I checked, we have 95 tools under installation and setup. By end of this year and hopefully by next year, we should be able to run production. Now let me talk about our health and safety. As Tom mentioned earlier, our number one metric for our company is safety. If you look at the data, we have a very respectable TRIR, which is the Total Recordable Injury Rate, 0.13, which is the lowest in our history and way below our industry standard of 0.7. We are, I think, on track also to meet the target of 2022. GF also won the award as one of the America's Safest Companies. As you can see, production ramp up, we continue to maintain our safety. Now let me talk about COVID. To keep the production running, our GF safety committee has adopted a situation that we changes dynamically on the health protocol, safety protocol just to keep the production running. With that, I appreciate very much on some guidance as well as the cooperation from all the employee. Let me summarize what I've mentioned to everybody earlier. First, our safety always, right? We maintain our world-class safety performance. All the fabs are running at maximum utilization with excellent manufacturing KPI. We continue to stay cost competitive by vigorous cost reduction and productivity improvement. And we achieve our equipment move into the Singapore new fab on 23rd of June, and we are now focusing on how do we start up the equipment and go into production starting January 2023. Last but not the least, we continue to expand our global manufacturing footprint in a capital efficient manner to satisfy our customer long-term agreement. With that, I thank you for your attention and let me take the opportunity to introduce our Chief Legal Officer, Saam Azar. Thank you. Hear me? I call K.C. the most important person in our company 'cause he actually makes all the wafers. Incredible partnership on safety throughout the years, by the way. My name is Saam Azar. I'm the Chief Legal Officer in charge of a host of things, obviously legal and compliance, government affairs, where I wanna just pause for a second, we'll go a little bit off script. Yesterday, I'm gonna tell a little bit of story, it may embarrass Tom, another important person in our company, very important person. We've been working on this CHIPS bill for a really long time. Hundreds of hours with Leader Schumer. Obviously, we're in upstate New York, quite an important constituent with him. Tom, as well as a whole bunch of other folks, and if you haven't seen it, they're all posting their photos in front of the lawn. Tom, with a small group after the signing, small group of CEOs, I think maybe five or six, Intel, AMD, GlobalFoundries, Micron, onsemi, are asked to go join the President in the Oval Office. Quite an honor. You know, they all come in. I think Pat's celebrating. Tom's relatively humble, sitting behind Lisa. They have a good relationship. It's gonna be a photo op. You know, they're trying to position where to go. President Biden says, "Tom, get over here next to Gina." I'm thinking in my head, "Well, Tom's kinda short. The Secretary is short. Maybe President Biden wants to look taller." Instead, he actually says, "My team tells me you're a good guy." Secretary Raimondo, who knows Tom fairly well, says, "And his father was a firefighter just like you, President Biden." Next thing you know, they didn't know that. They're engaging in conversation. Pretty remarkable story. The President of the United States and CEO of GlobalFoundries from sort of relatively humble roots, very humble roots, getting to that position. Proud moment for us. We got the CHIPS law passed. Incredibly happy to stop answering the question from you all about when is the CHIPS bill gonna get passed. Soon you're gonna be asking, if you haven't already, I heard it earlier today, "When are you gonna get that money?" With that said, let's turn to another very important topic, important to the president, important to the world, important to us, important to investors, ESG. Okay. First thing, our ESG program didn't start when we went public. It didn't start a year ago. It was actually started when we -- It started when-- It goes back to our roots. In 2009, as we mentioned earlier, when AMD, a public company, spun off their manufacturing facilities, they gave us a host of policies and procedures, compliance. More importantly, they had decades of doing compliance. We weren't a startup in 2009. We started with AMD. In 2015, we acquired IBM Microelectronics, and with it, we got an even stronger culture of leadership and management training and development. This is a company that's trained many leaders. Lisa Su, I just mentioned one of them. Tom Caulfield and others, right? That's our foundation. When we talk about our ESG journey, it's important to remember that very strong foundation that it was built on. Somewhat the GF 1.0 that Tom talked about earlier. On top of that, this is sort of the GF 2.0, is where we started building layers of goodness on top of that foundation. First and most critical and sort of foundational table stakes is setting up an ethics and compliance office and a code of conduct that's core to that office. Everyone knows codes. You got some basic rules, standards, and behaviors. We can sum up our code with a mantra that many of us say, and it's very simple, doing the right thing. It's what it ultimately comes down to. Shortly after establishing our own code, we signed up to become a member of the Responsible Business Alliance in 2016. That was the first layer we added. The next layer on top of that was to ensure we were compliant with a host of international environmental health and safety standards. Started out obtaining regional certifications to many EH&S standards early on in our journey. In 2018, we then expanded our regional strength by transitioning to a global ISO 14001 certification, followed subsequently with a ISO 45001 safety standards. Building off of these layers, we then established our own program called GF Shield. I'm gonna get into that in a little bit later. Finally, definitely not last, layered on top of all of this is one of our most important differentiators. At GF, a big part of who we are is our people. While our competition claimed, and I was there at the beginning, it wasn't possible to manufacture outside of Asia. I literally heard that. Going so far as to suggest diverse groups weren't capable of delivering quality results. You get in trouble for saying that in this country. Hearing all of that, we decided to double down by embracing our diversity. This is one of the reasons why early on, before it became popular political movements, Tom, with our senior management support, drove our diversity and inclusion initiatives. It's our people that then propelled us to list last year. I'd like to say we didn't need to get ready for our IPO, given that foundation. We were already there. Notwithstanding that, we are public now, and with that, we appreciate, once again, embrace the added responsibility, transparency, and accountability that comes not just having one investor, but a lot of public investors. It's one of the reasons we believe post-IPO, we're able to continue to thrive in the market. We've been doing this for a while. That's our journey. Let's look ahead. We're intensely focused on delivering more results. In particular, we're laser focused on two areas, climate, the climate challenge, I'm gonna go into that in a little bit, and further improving our governance, the G in ESG. On governance, it's worth noting that the board's also been on a journey and it's evolved, and it's now has 5 out of 11 independents, and we're moving in the right direction. Most importantly, our board is committed to diversity and ESG, driving us forward on both fronts while relentlessly pursuing the top and bottom line. On a personal note, I'm secretary of the board, and I've actually had the experience to be able to sit on a whole bunch of boards. I've seen some good boards and bad boards. I've seen some real dysfunctional boards in my life. I've seen some good ones. I've never seen one that's as good as this board working with our management team. That's incredibly important when it comes to setting the tone at the top, when you look at all the challenges coming out into the future. This is something that third-party evaluators are starting to notice as well. In April, just a few months back, we received an ESG Corporate Prime rating by ISS, putting us up in the top 10% of our sector with the highest transparency level. That's not easy to do right out of the gate. All right. We got three elements here that I'm gonna double-click into. Supply chain resiliency. As you've heard earlier, this is an area I think that's a differentiator for us, so I'll speak at length as to why, digging into why that's a differentiator for us. I will talk about probably the biggest challenge facing the world and our comprehensive response to that, which is sustainable manufacturing, before handing it over to Emily, our Chief People Officer, to talk about our most important asset, our people and talent. Okay. At GF, we prioritize supply chain responsibility, resiliency, and security. We believe, largely for inherent reasons, but also for the other things that we layer on top of that we're the leading at scale foundry in this space. There's five reasons why we can get to that leadership position. I'm gonna walk you through them. First, as the world's only leading semiconductor manufacturer with a global footprint, GF benefits from a resiliency and geostrategic supply that's just unique to our industry. With manufacturing in America, Germany, Singapore, as you saw, in K.C.'s presentation, our global footprint ensures capacity is strategically distributed for supply chain security, stability, and reliability. Second, as a member of the RBA, GlobalFoundries is committed to responsible sourcing practices. To drive resiliency and positive impact on our supply chain and throughout the industry, we hold our suppliers accountable for a slew of characteristics, including quality, reliability, environmental responsibility, human rights, fair trade practices, safety, and emergency preparedness. As mentioned earlier, we also, as a member of the RBA, we actually also need to be accountable to the same traits for our customers because we're part of their supply chain. In the last four years, we've had four separate audits, and we've scored a perfect score of 200 out of 200 on each one of those audits. That is not easy to do. It's something that requires global coordination and something that's celebrated, and we're quite proud of. We worked incredibly hard to be able to achieve that. Third is our commitment to 100% conflict-free sourcing. High purity materials derived from minerals are widely used, as in these fabs, and they're widely used in our industry. We're committed to sourcing these materials in the most responsible way. As a member of the Responsible Minerals Initiative, we partner with suppliers and take action to ensure 3TG in our supply chain are conflict-free. Fourth, Tom mentioned this earlier as well. GlobalFoundries is a trusted foundry for the U.S. government. We're the most advanced foundry of that kind in the United States. What does that mean? That means that we're trusted to make some of the most secure and sensitive products for the largest military in the world. They're so secure and sensitive, they won't even tell me what we're making sometimes, right? You have those special clearances. The relationship with the government is deep and wide, and one that both GF and our partners in the government benefit from regularly. Let me give you a proof point. We are and have been able to utilize the Defense Production Act to get priority access to supplies and materials when we need it. That means we can go up to the front of the line for national security reasons because the Defense Department needs it. It's why we're also able to keep our operations open during pandemics. It's been an incredible relationship. Fifth, and finally, bringing this all together is GF Shield. As I mentioned earlier, we started this as a foundational layer. What happened is we started seeing our program as potentially a differentiator compared to some of our peers who were struggling with IP theft, litigation, cyber and geopolitical threats. We started noticing maybe the strength of our compliance and security programs were a little bit better, and we felt maybe we could actually market these attributes to our advantage because our customers, like us and like a lot of people, cared more and more about the security of their products. They wanted to know where they were coming from and the assurance of that supply. We launched GF Shield, a company-wide platform that safeguards and protects our customers' IP and products to tap into GF's experience working with the U.S. government. It's all these elements combined that is why we think we're a leader in supply chain resiliency, responsibility and security at a time when this world really is depending on us. It goes back to that responsibility point that Tom had alluded to. Let's go from supply chain security to another huge challenge that the world's facing, and that's climate change and environmental sustainability. As you all know, climate change is unprecedented. I can't believe it's not 105 degrees today. It's only maybe 90 outside. Although I think Tom was sweating profusely on the White House lawn, as was everyone else. 160. This is unbelievable, right? The effects it has on our environment, on human society and the economy, no one actually denies it. Well, very few people deny it anymore. They're asking, what are you gonna do about it, most importantly. Our investors are asking, what are you gonna do about it? Journey to Zero Carbon is our commitment to grow responsibly. While we plan to increase output significantly, you heard about the growth that we intend to do, we simultaneously between now and 2030 are gonna bring our absolute global greenhouse gas emissions down 25%. We committed to that last year, and we're now taking steps to implement that. In fact, $75 million of improvements have been planned, which are gonna yield financial benefits as we improve our productivity, but they're also gonna help us attain that target. This is all in line with the Paris Agreement, which calls for significant reductions by 2030. We're off doing that. Net zero emissions by 2050. This isn't just all talk. We've actually been doing this for the last 6 years. You can see our results here. We've made significant progress in electricity and greenhouse gas emissions, water use, and waste. There's more to do, however, 2022 and beyond. By way of example, that fab that you saw in the video, it has been built and designed in the most energy-efficient way, and even the equipment that we're putting in is also being made a lot more efficient as well, which will help us meet these objectives. Finally, and this is what I'm most excited about. As the world moves to a greener tomorrow, it's ultimately our technology that's gonna help drive that future. Whether it's lower power, lower emissions, driving the electrification of those vehicles, connecting everything, our technology solutions are pervasive and they're gonna be pervasive, and they're critical to the future. It's our people that make all of this possible, which is why I'm gonna hand over the baton now to our Chief People Officer, Emily, to take us forward on the talent. Thank you, Saam. As Saam mentioned, my name's Emily Reilly. I'm the Chief People Officer for GlobalFoundries, and very pleased to be here with you today. Tom and my colleagues have shared that GF's business is differentiated in how we enable our customers innovation. This happens only because of our differentiated and diverse team, who, across our global footprint, drive engineering and technical solutions every day, unlocking value for our customers and our shareholders. The depth of our experience and talent profile across the organization begins with a world-class leadership team, true industry experts with on average 28 years of semiconductor experience, who are architecting our journey and guiding an exceptional and committed worldwide team of over 80% technical and manufacturing individuals. GF does not rest on experience. We invest in the continual growth and development of our talent. We support programs for continuing education and degree partnerships for our people, including tuition reimbursement and specialized degree programs, such as a master's in manufacturing management with Clarkson University, apprenticeship pathway programs at our fabs in New York, Vermont, and Germany, and our technician internship program in Singapore. We invest in about 400,000 hours of employee development each year through extensive online courses, virtual and in-person instructor-led courses, and specialized development opportunities with external partners. We know that hands-on experiential learning is the best way to grow and engage. Our talent spends over 1 million hours each year collectively in on-the-job training needed to prepare individuals to run and maintain our complex operations and some of the most sophisticated equipment on the planet. On average, employees spend over 5% of their time in learning each year, with a higher percentage of that for our early career team members. Greg shared a terrific overview of technology and innovation at GF, the heart of our business. Close to 1,000 of our current team have submitted inventions for consideration in the GF patent process, contributing to our patent portfolio of over 9,000 worldwide patents, turning innovation into IP. GF knows that the best ideas come from diverse and inclusive team, and that our success rests on empowering individuals to bring their authentic selves and unique and distinctive qualities to our company. The diversity of our organization is apparent in our footprint and worldwide locations, background experience, and education. We're highly focused on providing opportunities across genders and underrepresented minorities and advancing fairness and equity in systems and processes at GF. In leadership, we have increased women in director and above roles from 16% to 18% since 2020, and US underrepresented minority leadership from 24% to 30% in the same timeframe. Here, we're proud to share how we're celebrating our diversity and exploring our differences together around the world. You can see in the center, GlobalWomen is our largest employee resource group with over 1,500 members, started in 2013. BRAG is our Black Resource Affinity Group, and Pride at GF was established in 2021, with membership growing every day. We have an outstanding and growing engineering organization in Bangalore, India. This is an important talent hub for us, delivering engineering analysis for our fabs in a follow-the-sun model across the continents. They provide answers while our fab teams are asleep. At GF, military talent is an excellent pipeline for many of our roles. The technical and leadership training, attention to detail and disciplined work ethic coming from the military provides a great foundation for a successful career at GF. Our Bulgaria team has celebrated their launch of GlobalWomen in 2020. This Bulgaria talent hub was established in 2019, tapping into a very strong design engineering talent market, again expanding our global footprint and access to outstanding engineering resources, both experienced and early career. Finally, as K.C. has shared, Singapore is our largest site, and they embrace diversity within their country working together. You'll see a photo of their most recent celebration of Racial Harmony Day. Our Singapore site has also just received a Great Place to Work certification, recognizing a great work environment, best-in-class employment practices, inclusive culture, and strong employee feedback. GF's vision of changing the industry that is changing the world is achieved by living our values every day to connect with our many important stakeholders for mutual success. Juan has shared how our commercial team engages with current and new customers, creating value every day and strengthening our relationships for future success. We continually seek to understand our employees' evolving needs and work together to enable a culture that encourages each individual to do their best and to be their best. We consistently have 80% participation in our semi-annual employee engagement survey to capture and respond to what's most important to our people. From their feedback, we have developed best-in-class benefits and flexibility, such as parental leave with 20+ paid weeks of time off for birth and adoptive parents in all countries. GF Flex, our flexible work program, has evolved to provide different options for flexibility across the organization. We have created a more flexible workplace and grown and executed on all business goals while increasing productivity. We're creating and nurturing an inclusive work environment with GF's cornerstone leadership program called Leading at GF. We educate our 1,400 managers worldwide on inclusion, unconscious bias, cultural competencies, allyship, social tolerance, and equity. Our inclusion does not stop at the front door. It extends to the community and ecosystems connected to GF. We're building excitement and inspiration for STEM careers with an external virtual platform called STEM at GF. In New York, we have partnered with community colleges to build stronger pipelines into their STEM programs. In Singapore, we're collaborating with the Nanyang Technological University in a three-year R&D project helping students with technical work and career planning. In 2009, the founding year of GlobalFoundries, $5 million was donated to the towns of Fab 8 to create two foundations chartered to support the citizens of Malta and Stillwater, New York. The proceeds earned from the investments of this principal have provided grants for the past 11 years in excess of $2 million. GlobalGives is GF's corporate and employee giving platform and has supported nearly 1,000 individual charities and nonprofit organizations. This is done through individual donations, company matching, and corporate gifts. The GF team donates to critical causes, including but not limited to disaster relief, social justice, and STEM education. Our value deliver creates a mindset, expectation, and performance culture. Our compensation philosophy and programs are fundamental to attracting, retaining, and motivating our talent to deliver differentiated business performance. GF has quarterly or annual performance bonus programs for all employees. These include our sales incentive program with metrics for in-year and future business creation, our quarterly performance bonus rewarding 9,000 manufacturing employees for line of sight quarterly KPI achievement, and our annual incentive program for about 6,000 employees, which measures and rewards for company financial performance. In 2022, following our IPO, we implemented an employee stock purchase program globally with 70% of our team participating. Our program was recently recognized by the Global Equity Organization for the Most Innovative Plan Design Award, and it provides a unique opportunity for all employees to become owners in GF. Finally, GF's long-term incentive program adds further to our ownership culture with 35% participation across the company. Broad-based employee ownership gives a critical population who's participating in the value creation a strong incentive to increase productivity, innovation, retention, and engagement. The LTI structure includes restricted stock unit awards and, for senior leadership team members, a mix of restricted stock units and performance share units to align our VPs, SVPs, and officers to long-term company value creation over a three-year period. In closing, what we do at GF is exemplified by our values of create and deliver. Equally, if not more important, is how we work, how we live, and how we behave, and that is by embracing and partnering with our stakeholders to be the best people and the best company we can be. Thank you for the opportunity today to share more about our global team, how we work together, how we connect inside and outside of GF, and how we hold ourselves accountable to produce great outcomes for our shareholders. Thank you very much, and I'd like to introduce our CFO, David Reeder. Thank you, Emily. Thank all of you, both in person and online, who have joined us today for our inaugural Capital Markets Day. What a day. You've heard a lot today. Tom kicked us off with an overview of our industry and our strategy and our performance against that strategy, followed by Ed, who covered our end markets and then the applications which are attractive to us within those end markets, and then how we're differentiated and how we're going about prosecuting our business in those end market applications. Followed by Greg, who covered our technology roadmap, and then of course, Juan, who covered our engagement with our customers, deep engagement with those customers to deliver them differentiated solutions from our technology roadmap and applications in which we can provide real value that enables them to win in our marketplace. As they win in that marketplace, you heard from K.C. about our manufacturing footprint and our growth in that footprint to be able to ensure that our customers that are winning with their technology and their IP married to GF technology and differentiation, they need capacity and security of supply. You heard about that in K.C.'s section. Finally, you heard from Saam and Emily about the things that we're doing to be socially responsible in the communities that we serve, in which we live. Of course, you heard about our people and our culture, which makes all of this happen. With that as context, let's cover our financial model, our financial performance to that model, and then, of course, some future projections. We believe that we have a compelling financial trajectory. We believe that we have a financial model that we're executing well against. As we execute against that model, it gives us more confidence that the numbers that we outlined to you in our roadshow a year ago, that we'll deliver. When we think about this model and we think about what's happening under the covers for us to be able to deliver this model, we're currently driving a virtuous business cycle. Let me describe it to you. As we look at our end markets and we target end market applications and we target technologies that will deliver those applications and we engage with our customers, they're able to deliver unique solutions that help them win in that marketplace. As they deliver those unique solutions on GF technology, they want security of supply. They have increased single-source business with GF, and our customers want to ensure that they can get the supply necessary to be able to serve their end markets. They sign LTAs. Our customers and GF want LTAs. Our customers want security of supply and GF wants security of demand. As we sign those LTAs, and they've expanded as you've seen, as we sign those LTAs it enables us to better plan our business. As we plan our business, we become more efficient. As we become more efficient, we become more profitable. As we become more profitable, we can then take those profits and we can invest back in our business. We can invest in technologies for our customers. Of course, we can ultimately distribute funds to shareholders. Our long-term model. About a year ago, if you can cast your mind back that far, we were sitting with many of you here talking about our long-term financial model. What was that model? It was about 8%-12% of annual revenue growth. It was about 40% adjusted gross margin, about 25% adjusted operating income margin, about 45% EBITDA margin, and about 20% capital intensity. That's CapEx as a percentage of revenue. Now, when we were sitting here a year ago with many of you all, we were actually right here in the first half of 2021. How have we performed over the last year against that long-term model and from where we were? We've grown revenue almost 30% to about $3.9 billion. We've more than doubled adjusted gross margin. We've grown our operating income margin to 16%. We've expanded EBITDA margin to 38%. Our capital intensity to 37%, which is where we expected because we're adding that capacity. We're building out our manufacturing footprint such that we can deliver to those LTAs that we've signed with our customers. We didn't just commit to you some plan in the future. What we actually committed to you was that we were going to make consistent, methodical, and disciplined progress against our plan. How'd we do against that? Let's take a look at revenue. We said we were gonna expand our revenue. How were we gonna do that? We're gonna capture more value through higher ASPs. We were going to improve our product mix, and we were gonna add capacity. You've heard about all three of those things today. As we grow that revenue and grew that revenue, we said we were gonna expand adjusted gross margin faster than our revenue growth. How were we gonna do that? Well, as we increased our prices, as we improved our product mix, and as we got better scale and fixed cost absorption, I mean, you saw the slide from K.C. earlier, what happened with COGS per wafer. Every time I see that slide, that my heart grows three sizes bigger K C I love that slide. That fixed cost absorption and that scale combined with better value capture and better mix, this is the result. As you deliver on the revenue and you get the flow through to the gross margin, and you hold your OpEx relatively flat, you get improved operating income margin and adjusted EBITDA margin. Finally, that all manifests itself in earnings per share. We talked to you in depth about a year ago about our gross margin bridge. There was a little bit of skepticism. Maybe there still is. We're making great progress against our plan to execute and deliver adjusted gross margin of our long-term target, roughly 40%. Let's not start at the beginning. Let's start with what we just delivered and announced yesterday. Roughly 28% adjusted gross margin. Moving to the right from our 28% adjusted gross margin that we posted yesterday, the first 2 margin drivers, that's the East Fishkill transition and the depreciation and amortization roll-off, those are passage of time drivers. We are on track to close our transaction with onsemi at the end of this year, 12/31 transaction in the Q4. When we do that will deliver roughly 3 points of gross margin accretion on an ongoing basis. About $250 million of benefit on an ongoing basis will flow through our P&L because the products that have historically been manufactured there will be manufactured elsewhere at a much lower cost, a significantly lower cost, because that is a subscale facility for us. From a D&A roll-off perspective, we're gonna get another handful of points, roughly, from depreciation and amortization rolling off as a percentage of revenue. Yes, we are adding CapEx. We have to. We need to satisfy those long-term agreements with our customers. But we're adding CapEx more slowly than we're growing our revenue. And we also have some depreciation amortization that's rolling off from historical investments. Those two things come together to deliver between now and, let's call it roughly the end of 2025, another handful of points over that period of time to improve gross margin. Then to the right of that, it's the remainder of our gross margin bridge to get to our long-term target. These two categories, pricing and business mix and really fixed cost absorption, these two are really driven and foundationally grounded in our revenue visibility and our single-source design wins. Those single-source design wins deliver LTAs, which deliver visibility, which give us confidence that in those LTAs, as we execute against those LTAs and design wins, we'll have the right pricing, we'll have the right mix, we'll drive the right scale, and we're expected to deliver our long-term gross margin target. Another way that we look at gross margin, now I'm not sure this is a view that many of you have seen before, but this is another way in which we view gross margin, and we view it by manufacturing campus and as a percentage of our total capacity. Let's walk through this. Let's take Singapore first. Singapore is 45% of our total manufacturing capacity. Singapore is already well above our long-term gross margin target. I'll just say that again. 45% of our total capacity, it's already above our long-term gross margin target. Now let's talk about Dresden. Dresden's 28% of our total capacity. Dresden's made phenomenal progress over the last 18 months on its gross margin profile. If you remember, Dresden historically was tooled to about 300K wafers per year of capacity. It actually has the physical footprint. That's the four walls, it's the process piping, the gas farm, the utilities. It actually has the physical capacity to deliver almost 900K wafers, 850K wafers per year. As we tool that facility, supported by our customers and our long-term agreements, as we tool that facility and get more full build-out utilization out of that facility. That fixed cost absorption is incredible. Looks very similar to the slide that K.C. showed. As we deliver on that plan to tool that facility at full utilization, somewhere towards the end of 2023, the early part of 2024, Dresden will be at or very close to our long-term adjusted gross margin. Let's talk about Burlington. Burlington's 12% of our manufacturing capacity. Burlington is already very well-positioned. In fact, they're reasonably close to our long-term modeled gross margin today. Burlington's performing very well as they continue their transition to silicon- germanium and ultimately to GaN. As they continue that transition, Burlington's on a very good path, which really then leaves us with Malta. Malta is about 16% of total capacity, and Malta has two challenges. The first challenge, it's not fully tooled. We've ordered tools, but not all the tools will be in to fully get our entitled, you know, fixed cost absorption out of Malta until probably early 2024, maybe mid-2024, depending on tool deliveries. Malta has to be fully tooled. Again, it's got the capacity, as K.C. showed, to deliver about 570K wafers per year. It's currently sitting much closer to 400K wafers per year, depending on the mix. Malta needs that fixed cost absorption. It's been perennially underutilized. As we expand that tooling, that will then deliver the fixed cost absorption for Malta. Second challenge for Malta. Malta was originally overbuilt. It was built as a single-digit nanometer fab. That's not the products and the customers that it's servicing today, and it has a tranche of depreciation, no cash cost, but it has a tranche of legacy depreciation that doesn't roll off until the early 2025, mid-2025 timeframe. We can get to our enterprise gross margins actually without Malta fully being at target. For Malta individually to be at target, it needs both that full-scale utilization, which is happening between now and call it the middle of 2024, and then of course, it needs that last tranche of depreciation to roll off. Our increasing single-source business. You know, one of the reasons many customers want LTAs is because they're single-sourced. We've talked about this before. We talked about it in our roadshow. As you can see, we've made great progress on our single-source business. From 2020, that's this left-hand bar, to the first half of 2022, our single-source wafer volume has increased from about 60% to about 65%. Over that same period, our percentage of single-source design wins, as Tom highlighted, has moved from about 80% single-source design wins to 90% single-source design wins. These growing single-source design wins is one of the indicators that we use to measure our market progress towards differentiated solutions. Our LTA momentum. You saw this slide in Juan's section, and as he articulated, you know, we're continuing to grow our LTAs. We grew our LTAs from about $20 billion a year ago to about $27 billion today. Also equally as important, our customers have committed more than $3.5 billion, almost $3.6 billion of advanced customer funding for us to continue to grow that capacity for them. Again, this partnership model that Tom talked about with GlobalFoundries manufacturing capability, and of course, with our equity, combined with our customers, combined with governments, which you've seen recent announcements about. You know, that new model is what's going to enable us to deliver the capacity that the market needs in a capital-efficient way. Also, as you saw in Juan's presentation, we have great multiyear capacity coverage. 2022 and 2023, we're currently oversubscribed. 2024 and 2025, we're covered at 75% and roughly 50%, respectively. Over this entire period, you know, roughly 80% of our capacity is under long-term purchase agreements. Again, the elements of those agreements, as we spoke about earlier, fixed price, fixed volume, fixed duration in partnership with our customers. Incremental capacity. We've spoken to you a lot over the last 12 months about wafer equipment vendors, the delivery of tooling, the ramp-up of facilities. What does that really translate into? Well, let me orient you on this chart. In 2020, we had capacity for about 2 million wafers. We made commitments to deliver about 3.3 million wafers by the time we reach the end of 2025. Call it about 60%, 60%+ capacity increase from 2020 to 2025. Look at the differentiation. 1.3 million wafers of growth from 2 million wafers to roughly 3.3 million wafers. 80% of the incremental capacity is actually being put in place with our customers to deliver SOI, CMOS with embedded non-volatile memory, optical networking products, BCD technologies. 80% of the capacity that we are putting online is for unique, differentiated GlobalFoundries technologies that are helping our customers win in the marketplace. What does that mean? Well, that means our product mix and our revenue mix is improving. It's becoming more differentiated. In fact, in 2020, about two-thirds of our revenue was from differentiated solutions, many of them shown across the bottom of the page here. In 2022, we're expecting that number to grow to about 70%. It's gonna grow roughly from 65% in 2020 to about 70% in 2022. Now, I just showed you that 80% of our incremental capacity is going towards or migrating towards differentiated capacity for our customers that need it in their marketplace. What that means is that by 2025, almost 85% of our revenue, our product revenue, almost 85% is on differentiated solutions that we're providing to our customers, that our customers are purchasing because those solutions are helping them win in the marketplace. As we grow those differentiated solutions and as we sign these long-term agreements, we have to add capacity in a capital-efficient way. I think you've heard over the last, you know, probably year about different partnership models, but what does that really translate into, and graphically what does it look like? Well, this is this slide here. You first saw this slide during our GF France announcement. Let me, for those of you that haven't spent time with it, just orient you on this slide. Starting on the far left, which is this purple bar, this is the capital intensity of a traditional greenfield investment in the technologies in which we serve. You're talking capital intensity depending on exact technology, somewhere between $10,000-$15,000 per wafer capital intensity. If you look at our Singapore announcements, that's a Fab 7H announcement K.C. showed you a video about. If you look at that Singapore announcement, it's about 25% less capital intensive than a traditional investment. That's less capital intensive because of the customer relationships that we had and the agreements that we signed, as well as the partnership models that we signed with the government there in Singapore. Then we announced France. Tremendously excited about the announcement that we made in France to grow our SOI capacity in France. What we announced with France, the capital intensity is about 25% less capital intensive than what we announced in Singapore. Remember, Singapore checked all the boxes. Our GF France announcement also checks every one of these boxes. It's accretive to our long-term gross margin, it's accretive to our return on invested capital, and the payback period is a very short, roughly 5-year payback period on a plant with equipment that should last well into 25, 30 years. Our capital intensity, it's becoming less. It's becoming less because we're engaged deeply with partners and governments to deliver a capacity that the market desperately needs to be able to satisfy the demand. I think you've probably seen some indication of our financial discipline in the last several slides and how we think about things with respect to deploying capital, delivering to our financial commitments. We have a very strong and healthy balance sheet. Since our pivot, our gross debt has declined from slightly north of $3 billion to roughly $2 billion today. During that same period, our EBITDA expanded roughly 4x from 2018 to the last 12 months, and then what that translates into is a gross debt to EBITDA ratio that's at about 1 today. Now, to put that in perspective, at these levels, you're in the investment-grade bond territory, and investment grade is something that we expect to achieve over the near term. We are financially conservative. Of course, not only are we financially conservative with our leverage, but from a net cash position, if you add our cash and marketable securities and you look at our net cash position versus debt, we actually are in a net cash position, and we have tremendous liquidity. In the event that we have any headwinds in the future, we believe that we are well-positioned with a very strong balance sheet to weather any storms that could come our way. In closing, platform solutions that serve attractive markets, that are built on differentiated technologies with deep customer engagements and are manufactured with a geographically secure supply chain. That's our strategy. That's the strategy that we're executing, and that strategy is winning. We know that we have more to do. We're doing it. We're objectively measuring our progress against it. We are hungry, we are humble, and we are laser-focused on delivering our commitments to all of our stakeholders. Thank you for your time today. That concludes the prepared commentary. Sukhi, Tom, you guys wanna come up for Q&A? All right. We'll take about, you know, 15, 20 minutes of questions if you have. We'll start with you, Tristan. Yeah. Maybe. Thanks, yup. Yeah. Thanks. Tristan Gerra, Baird. A quick question on pricing and gross margin. I think at the time of IPO, I think your financial forecast was contemplating a flattish ASP environment for next year. And you've talked obviously about pricing and mix being a contributor to your gross margin target. Today you've also mentioned LTAs signed this year embedding a 20% increase in ASP. How should we be looking at pricing next year, given potentially supply demand getting in balance next year? Maybe you wanna take that. Yeah. I'll take that one. You know, I think the first thing that we've talked about that I'll describe in a bit more detail is the pricing this year. We communicated that our LTAs ramp over the course of this year, and as they ramp over the course of this year, that it's about a 10% ASP increase. I mean, most recently we communicated it was 16% in total. About six points of that was roughly associated with product mix and about, you know, 10-ish% or so associated with, like, true like- for- like ASP. If you take a simple mid-year convention and you say those LTAs ramp throughout the year and pricing step- function increases with kind of each LTA that's ramping, if you took a mid-year convention, it would imply something like mid-single digits for 2023 from a pricing perspective. Great. You have a follow up? Quick follow-up, if I could. Given the geopolitical tension, I'm wondering what's the appetite from your existing customers to see you moving longer term below 12- nanometer, and what would be potentially your response to that? Look, I think the nothing has changed from when we made our pivot. The economics have to work. Think of the scale you need. You probably have to take R&D up to $3-$4 billion a year to develop that. You're already playing from behind. Look what TSMC spends in CapEx a year, $40 billion to get the kind of scale. You know, we're roughly gonna be in the neighborhood, right, of the high $7 billion company this year. Long-term model probably double in the next decade. Nowhere near the kind of scale to go it alone. Now, the opportunity for some kind of partnership or some kind of co-investment is always there. We'll be pragmatic and judge it. Going it alone, it's not required. We play in 70% of the market and fundamentally the economics would not work for GF. David, would you disagree with that? No. Well said. Thank you. Whoo. Vivek. Thanks very much. Two questions. Let's say if sales grow 5% or 6% a year instead of the midpoint 10% a year, then what happens to gross margins, right? You showed that very useful kind of chart, right, that bridges from the 28%, 29% to the 40%. How many of those points are revenue dependent? If we took the bridge that we had, where we went from 28% gross margin we reported in Q2 to 40%, roughly half of it's actually slightly more than half, was just those passage of time that was East Fishkill and D&A roll-off. Then that remaining portion was ASP and mix and then fixed cost absorption. It was the remaining half, if you will. All right. The other thing, there was, you showed CapEx as a net CapEx, right? Right now your CapEx is running, what? About $3.5-$4 billion-ish, right? In that- Right Range. If I take your 2025 model, you are projecting CapEx to be $2 billion, right? 20%, roughly, of that. Sure. Is that delta what you're anticipating in terms of the CHIPS Act and other benefits? Like, what does that net comprise of? Yeah. Maybe the right way to think about it is let's do some simple math on, you know, maybe a steady- state model, if you will. Let's say a steady- state, we're at 20% capital intensity. If you step back from that and you say, "Okay, so I'm gonna spend 20% of my revenue in CapEx," and that's not a fully partnership model. If I'm getting roughly 25% benefit from maybe investment tax credit, then that would be a decrement to the model. If I was gonna get some significant cash credit or tax credit or project credit on a big project, that would be a decrement to that type of model. What we've committed to all of our investors and shareholders is that we'll give you gross CapEx numbers, and then to the extent that we get benefit, we'll give you the net benefit as well so that you can calculate that net number. I'll use Singapore as an example. The Singapore project, roughly $4 billion of investment for 450K wafers per year. We're getting roughly $500 million of government support with that $4 billion, and it'd be $4 billion minus roughly $500 million of government grant to get a net position of about $3.5 billion as an example. If I ask the same question a different way, if I look at your 40% gross margin target. Right You know, let's say you were to get some money from the CHIPS Act. That helps, you know, that nets against your CapEx and maybe against depreciation. Is it incremental to the 40% gross margin, or does it already contemplate- When we came out with our original long-term targets, we did not envision or incorporate the government partnerships that we see today. They are incremental. That's the key point. Okay, thank you. Joe? David, can you talk about the CHIPS Act and these other programs from the standpoint of not just CapEx subsidization, but demand creation? You know, I know you have this partnership with the Department of Defense. There's a lot of initiatives people will wanna build product with you. You know, do you see this kind of creating incremental demand? Do you see this creating interest from fabless customers who are attracted by what the CHIPS Act is enabling? Yeah, I think there's broad base to that. You're being very specific to aerospace and defense. You know, we hosted what we call the CEO Summit around the CHIPS bill Monday. Jim Farley from Ford, Gary Dickerson from Applied Materials, and we brought in 34, 35, 36 executives, mostly CEOs from around the industry, including Mary Barra. You know, this guy William LaPlante was you know, relaying a story about how you know, starting again a very strategic missile system because of the conflict in Ukraine. They started to say, "Where are the chips coming from?" One individual who was being asked says, "I don't know, I'll have to go find out." When they found out they weren't built in the U.S. for something that was this important, it created a lot of discomfort in the room. I think this, again, back to this awareness of where everything's coming from, tracking back to sources and getting more secure, it's gonna force A&D business back into the U.S., and we should, you know, strongly participate in that. Certainly, right, DoD will have an influence on how that capacity will get created to secure the nation. Okay, thank you. Okay. Harlan. Right here. Yeah, thank you. This is a question following up from Juan's presentation. He had mentioned that the team drove an ASP increase of about 20% of the 2022 LTA renewals. I'm assuming that at, on a regular basis, you guys are truing up that pipeline, right? My question is that for the remaining 80% of those LTA renewals, can you tell us what was the ASP trajectory relative to the prior LTA terms? Were you able to keep wafer ASPs on that 80% of your 2022 renewals relatively flattish? Were they down? Any way you could just help us quantify? Just, I just wanna make sure that the team continues to get the value recognition, right, for the differentiation you're bringing to your customers' products. Sure. I think what we discussed before that was when we were signing those LTAs, and I'm not talking about an extension, I'm not talking about a renewal, I'm talking about the original LTAs. When we signed those LTAs, it was really a step function increase in price, and it was pretty flat thereafter. Okay. That was the profile of really the vast majority of those LTAs that you see today that are not extensions or that are not renewals or that are not like new ones in the last couple of months. It was a step function up in pricing and then relatively flat thereafter. When you see a comment about, you know, it comes at 20% higher than the prior LTAs, then it's that kind of flat profile where it's above. I assume, Harlan, based on your question that you probably read the footnote that said that that pricing is actually accretive to our long-term model. As we progress through time and those LTAs, we start to execute against them, then those LTAs were actually signed and negotiated with economics that are better than the long-term model. Let me build two points on that. You know, we talked about how it gave a certainty, and the first thing you think is, "Oh, it's a 4-year LTA, so 4 years of certainty." I think au contraire. You know, every year we meet with our customers, say, "Okay, now you got 3 years left. Right. What do you wanna do?" In the context of what they want to do, there's opportunities to renegotiate everything. There's an opportunity for them to say, "I don't want it anymore," and we have 3 years to go find it. You know, in the previous life it was we had 9 months to go figure out what to do with that capacity. Dave's point is where our opportunity here is to remix that capacity and to do more with it. To give you an idea, you know, we talked about 90% of the design wins the first half of this year, single-source business. Over 90% are all very accretive to our business. That's how this continues to go way out in time. Thank you. David, anything? No, all set. Okay. Yeah. Thank you. Mehdi. Thank you. Just to follow up. On Malta, you said you're at 440 and you plan to add another 100-ish capacity. To what extent that incremental 100K is driven by additional LTAs? Would the CHIPS Act impact that incremental capacity that you're gonna be adding over the next couple of years? I have a follow-up. Yeah, I think K.C. showed on this slide that Malta's at about 400K today, roughly, capacity. It's got the ability, fully tooled, to go up to about 570K. We've said it before, but it's probably worth repeating, you know, we don't add capacity just for GlobalFoundries. When we add capacity, it's in partnership with a customer that's going to take that capacity as demand. You can assume that the capacity that we're adding, it's being added in contemplation with specific customers that need that capacity. Yeah, let's 2 more points on that. While it's great, it gets to 570, that's still not the scale we want. In the CHIPS Act. In conjunction with this model for investment will allow us to take it to better scale and better flow-through. You know, for us, we're in the process now aggregating demand with certain different customers on the kinds of nodes we wanna put there, and that will close the gap to the economics, is the funding that will come from the CHIPS and Science Act. Should we look at France and how the subsidies there helping you with 25% capital intensity, 25% of greenfield? Should we think of Malta incremental capacity benefiting from the CHIPS Act, and therefore the capital intensity could be dramatically reduced and use France as a model? There's a little bit there. David Reeder, you wanna talk a little bit about the 2 opportunities for the CHIPS, the tax credit. Sure. We'll bring it together. Sure. There's two opportunities with the most recently passed legislation, and the first one is an investment tax credit. That investment tax credit, the way that it works is for funds that are spent for tooling for incremental capacity in the United States, you can receive up to 25% back of that expense, and it happens relatively quickly. If you don't have a tax obligation in the U.S., then you get a check, essentially, for 25% of the value of the tools that you purchase to increase capacity. That's one element of it. The second element of the CHIPS Act is the one that still needs to be, you know, written from a procedures, methodologies perspective. Now, that second portion, you can receive up to $3 billion for a project that increases domestic production of semiconductors. Now, what are all the, you know, the rules and the regulations and the processes associated with that? It's a little bit unclear. How you define a project? You know, is it this or is it this? Exactly. What we're doing is at our Malta campus, we have progressed our planning to the phase where, you know, we've done our planning, we've secured land, we've got rough engineering plans, and we're continuing to develop those plans so that we'll have a project that's ready when we have customers that are there with us wanting to take those technologies and take that output, that will sign LTAs, that will provide funding in combination with our partnership with the government. Tom? When you take the two parts of that program and look at it holistically, you're getting similar to what the European Union is looking to do and the kind of thing we did in France. It's a very quick one. Any guide on depreciation? How we should think about depreciation over the next couple of years? You know, I think depreciation is one of those things that it's a large number. I think what you'll see is as a percentage of revenue, you'll see depreciation just kind of varies very slightly by quarter based upon when you brought tooling in and when it rolls off, so you tend to get a little bit of lumpiness. It's a sizable number, as a percentage of revenue over time, you'll see depreciation as a percentage of revenue continuing to tick down, especially as we get some of these even more capital efficient projects going. As that depreciation and amortization continues to tick down as a percentage of revenue, that will correspondingly increase gross margin accordingly. Okay. We've got a couple of questions from the webcast, so I'm just gonna read them off. First one here, you know, great progress on your model since the IPO last year going forward. How do you see the rate and pace of gross margin progression, particularly in this current environment? If you wanna take a stab. Sure. I'll take that one. Look, we're oversubscribed for 2022 and 2023. When I think of the current environment, I think an environment in which we're still utilized, fully utilized, to a large extent. When I think of rate and pace, my expectations are that we'll continue to grow our gross margin, you know, in a profile that's not terribly dissimilar from the results that we've posted over the last seven quarters. Very good. Then one other question that came in. Tom, this is for you. The CHIPS Act got signed yesterday. Nice shout-out to the President, by the way. Do you have more details on how this will impact our business and how do we view its impact in the industry in general? Any details? Yeah. I know we sound like we're repeating ourselves a little bit. The CHIPS Act in itself is not enough for us to go at capacity. The way we do it, again, is it starts with we have customers. Now we don't need one customer to create capacity, but we can aggregate demands. When we get enough demands to create a project of the right size, we work in partnership with them, you know, how much of their balance sheet they wanna use. We create an economic model, right, that works for both companies, and we'll use the CHIPS funding to close that gap. I think what you'll see for the better part of at least three months, you know, Congress has gotta be really thoughtful in how they set their rules up for this. There's plenty of traps, and the last thing you wanna do is have the unintended consequences of unleveling the competitive playing field or, you know, wasted money. This is not a program with the headlines and the kind of money that's being spent that it has to go flawless. I wouldn't expect, you know, money to actually start coming out of that for at least, you know, six months or so, right? Three months to kinda get the rules done, three months to start applying, and this is gonna be a very thoughtful process. This is a strategic process. Yeah, if I could build on that. The amount of supply chain awareness right now in the marketplace is really unprecedented. I think between, you know, tensions in Taiwan, Russia and Ukraine reminding everyone that the world is not always a perfect place. You know, I think that awareness has created you know, what could be a tailwind for domestic manufacturers. That's both for Europe and for the U.S. I think there's a real desire in the marketplace right now for supply chain security, supply chain diversity. Yet to see how that plays out. I mean, obviously, what you see going on in Europe with regards to, you know, them spurring their domestic manufacturing, you saw that yesterday here in the U.S. I think that it creates even more awareness, and I think it strongly encourages companies to do their enterprise risk management appropriately, not just at the executive level, but also at the board level. I think it's an underappreciated tailwind that it's yet to be seen how it plays out in the years to come, but You need two elements, David. You know, you need foundries willing to put the capacity. Remember, 48%-49% of semiconductor demand comes through U.S.-headquartered companies. Those companies have to be willing to take that demand and rebalance where they supply it from for the foundries who want to put the capacity on, and that was what Washington was talking about. We need the two to come together, not one without the other. Okay. Any other questions? Yeah. At the time of the IPO, when you laid out your margin structures, I think you sent a strong message to the market that 40% is not the endpoint, right? You gave us some metrics that we should think about in steady state. Once you hit your margin targets, incremental revenues will drive 60% incremental margins. You've got better LTA visibility, you've got better pricing visibility. Is that still the case in how we think about gross margin expansion beyond that 40%? That's right. That marginal flow-through is still at those levels. In fact, we've been performing above those levels because we've gotten that fixed cost absorption, right? We've gotten kind of these large tranches of fixed cost absorption. Look, we've had the question before. I'll just address the unspoken question. We've had the question before, you know, can you guys do better than your long-term gross margin? If it didn't come through today, I hope this will make it more clear. Starting from where we started, it didn't make sense for us to put out a long-term financial model, you know, that was more aggressive than what we committed. Now, as we execute against that model that we've given you, and we become more comfortable, and we deliver that consistent, methodical, disciplined execution, as we do that, if we can do better, we'll come back very transparently. We'll update you at that point in time. But at this point in time, we're gonna stand pat. We're gonna deliver on our commitments. We know the kinds of leverage. Right. Until we know that we have certainty in what we could deliver on that, we're gonna drive that to the right point before we talk about it. Thank you. Okay. I think we're pretty all set. Well, thank you everyone for. Good day. You guys, worth your time. Great day. Thank you. Thank you.