TABLE OF CONTENTS

01 COMPANY PROFILE 07 COMMUNITY ENGAGEMENT 02 CEO STATEMENT 08 SUSTAINABLE MANUFACTURING 03 GOVERNANCE 09 PRODUCT STEWARDSHIP 04 STAKEHOLDER ENGAGEMENT 10 SITE PROFILES 05 SUPPLIER RESPONSIBILITY 11 ABOUT THIS REPORT 06 OUR PEOPLE AND WORKPLACE 12 GRI CONTENT INDEX

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We are GLOBALFOUNDRIES, a leading full- While execution excellence remains our Today, GF operates manufacturing facili- service foundry delivering truly differentiated first priority, we are more than a manufac- ties in Dresden, Germany; Malta and East semiconductor solutions, created ten years turer. We are the catalyst for growth in the Fishkill, New York; Burlington, Vermont; and ago with an integral commitment to social and industries we serve. With one of the largest Singapore. GF’s corporate offices are in Santa environmental responsibility and dedicated to populations of leading-edge scientists Clara, California (Silicon Valley) with a global ethical and responsible business practices. and technologists in the semiconductor network of R&D, design enablement, and manufacturing industry, we make possible customer support operations (please refer to GF provides a unique combination of design, the technologies and systems that trans- the map “Company Locations”). GF is owned development, and fabrication services for a form industries. We are dedicated to being by Mubadala Investment Company, which is range of high-growth markets. With a manu- the best possible partner for our clients, owned by the Government of Abu Dhabi. facturing footprint spanning three continents, delivering the expertise and insights to GF has the flexibility and agility to meet the help position them as the leaders in their 2019 marks the tenth anniversary of the dynamic needs of clients across the globe. markets. We develop the solutions that are founding of GF. Over the past decade, the We partner with some of the world’s most moving the world forward, making lives company has grown and evolved to become inspired companies to develop and produce easier and creating new ways to meet the world’s leading specialty foundry. Today, the semiconductors that are changing the way the challenges of tomorrow. Our target we are in the process of streamlining our people live today and defining what’s possible markets include Mobility, Automotive, global manufacturing footprint to better for tomorrow. Communication and Data Centers, and IoT address the growing demand for differentiated (the Internet of Things). technologies. In January 2019 we announced

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our plans to transfer ownership of Fab 3E in In 2018 and into early 2019, GF has been recognized for exceptional CSR Tampines, Singapore to Vanguard International (Corporate Social Responsibility) and EHS (Environmental Health and Safety) Semiconductor (VIS) at the end of this year, performance with the following awards: while maintaining fab operations at our campus in Woodlands, Singapore. In April 2019, we • Responsible Business Alliance (RBA) • 2018 National Pollution Prevention VAP Audit Platinum Recognition: Roundtable (NPPR) Award: announced the launch of our strategic partner- ship with ON Semiconductor, through which GF ° GF Fab 9 achieved the maximum score of ° GF Fab 8: Awarded for a project that 200 in its 2018 VAP Initial Audit; reduced the use of a sulfuric acid and will transfer ownership of our Fab 10 facility in hydrogen peroxide mixture while increas- East Fishkill, NY to ON Semiconductor at the ° GF Singapore achieved the maximum score of 200 in its 2019 VAP Closure Audit. ing third-party reuse of the spent solution. end of 2022. As the last major element of our The project eliminated over 10,000 tons strategic pivot, in May 2019 we announced of hazardous chemical use annually, and the planned sale of Avera Semi, our ASIC saved more than US $16.7 Million for GF (Application-specific Integrated Circuit) business and its partners; to Marvell Semiconductor. This transaction is ° GF Fab 9: Awarded for a chemical use anticipated to close in Q4 2019. reduction project in chemical mechanical polish (CMP). The Fab 9 team optimized the polish slurry chemistry and qualified a new polishing pad for enhanced slurry transport. These changes eliminated nearly 700 tons of hazardous waste and saved more than US $1.1 Million per year.

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• 2018 Corporate Health Award Seal of • 2018 Piepenbrock Gold Seal Award 2019 Vermont Governor’s Excellence Award Excellence in Worksite Wellness – Silver level ° GF Fab 1 was awarded a Gold Seal by ° GF Fab 1 received the Seal of Excellence for the site’s janitorial contractor for the joint ° GF Fab 9 received Vermont Governor’s sustainable work in the area of maintaining efforts in implementing an ecological recognition for 2018 activities focusing and promoting employee health. building cleaning concept. The program’s on promoting the health and wellness of focus is on protecting the environment and our employees, and our involvement with • 2018 Kimberly Clark Greenovation Award saving resources, reducing greenhouse gas wellness in the community. emissions, protecting the health of GF and ° GF Fab 8 was awarded with a Greenovation Award for diverting more than 2,000 kilo- Piepenbrock employees, as well as cost • 2019 Saxony Environmental Alliance’s grams of nitrile glove waste from landfills savings through reduced consumption. Certificate of Recognition to a recycling program that turns used ° GF Fab 1 was awarded a Certificate of gloves into plastic pellets to manufacture • 2018 Singapore Energy Efficiency Recognition for environmental manage- new products. National Partnership Award – Best ment measures that go beyond regulatory Practices Category compliance. ° The award recognized development and implementation of a cold ultrapure water (UPW) chemical rinse step, replacing a process that used hot UPW. GF Singapore proved that chemical rinsing with cold UPW to be equally effective and efficient, producing savings of US $1.3 Million and an energy reduction of 24,897 MWh per year,

equivalent to 6,875 tons CO2.

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Kista

Rochester, MN Dresden Endicott, NY Burlington, VT Leuven Beijing Evry Munich Seoul Malta, NY Geneva Santa Clara, CA Shanghai East Fishkill, NY Yokohama Raleigh, NC Kyoto

Dallas, TX Hsinchu Austin, TX

Bangalore

Headquarters Singapore

Manufacturing & Technology Centers

Design, Sales & Administrative Offices

Research & Development

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GLOBALFOUNDRIES was founded in 2009 in high-growth markets. We are executing on with a strong global commitment to social and our strategy to optimize our manufacturing environmental responsibility. In 2019 we are footprint, starting with our January 2019 celebrating our 10th anniversary. Much has announcement that we will transition ownership changed in our business and the broader indus- of Fab 3E in Tampines, Singapore to Vanguard try over the past decade, but one thing remains International Semiconductor. In April 2019, we the same—semiconductors are the central also announced a strategic manufacturing and components of the global technology revolution. technology partnership with ON Semiconductor Semiconductor technology is changing the way through which we will transfer ownership of our Dr. Thomas Caulfield people engage, interact, work and play—every Fab 10 in East Fishkill, NY to ON Semiconductor CHIEF EXECUTIVE OFFICER day. Our vision is to change the industry that’s by the end of 2022. Finally, in May 2019 we changing the world. announced the planned sale of Avera Semi, our ASIC (Application-Specific Integrated Circuit) Since March 2018, we have taken bold steps, business—to Marvell Semiconductor by the end pivoting our business to become the world’s of 2019. These transformational transactions leading differentiated semiconductor foundry. will allow GF to focus on our core competency— We have reshaped our technology portfolio to providing manufacturing services to enable our intensify our focus on delivering truly differ- customers’ success through our differentiated entiated feature-rich solutions for our clients technologies.

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For GF to be truly relevant, our clients need a During my tenure leading GF Fab 8 in Saratoga • At GF we are committed to a respectful foundry partner with a sustainable business County, NY, and now as CEO, I have been workplace that embraces our diversity, model—economically as well as socially, dedicated to ensuring the safety and security of including gender diversity, as a competitive advantage. On International Women’s Day environmentally and ethically. We share the our employees on our “Journey to Zero” injuries 2019, we announced the formation of the Fab 1 same dedication to upholding the highest and incidents. I have formed a Stewardship chapter of GLOBALWOMEN in Dresden, Germany, standards of ethical business conduct as our Committee which encompasses my senior expanding our internal network focused on the customers—embodied by our Worldwide leadership team to provide oversight and stra- professional development of women at GF. With the Standards: GLOBALFOUNDRIES Code of tegic guidance for the company’s approach to addition of Fab 1, we now have GLOBALWOMEN Conduct. corporate responsibility, including environmental chapters in all of our manufacturing sites, as well as our largest non-fab sites in Santa Clara, CA, health and safety, ethics, and labor practices. and Bangalore, India. As the senior executive sponsor of GLOBALWOMEN, and along with my Recognizing the importance of transparency to leadership team, I am committed to fostering our stakeholders, I am pleased to present our opportunities for women to grow and advance in approach to social and environmental respon- their GLOBALFOUNDRIES careers; sibility in this 2019 Corporate Responsibility • Together with our employees, GF provided aid Report. I would like to highlight key elements of for Kerala and Kodagu flood relief, the Cyclone our 2019 Report: Gaja relief campaign, and California wildfire relief. In 2018, our company and employees made more than 7,000 donations totaling more than $130,000 through GlobalGives, our corporate philanthropy and community engagement initiative;

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• In 2018, we demonstrated strong safety • We maintained “Conflict-free” status We recognize that the expectations for performance on our “Journey to Zero” injuries, across our global supply chain for materials responsible and transparent business practices working more than 34 million hours at rates designated as “Conflict Minerals”—Tantalum, set by our key stakeholders, including our below (better than) safety benchmarks. We Tungsten, Tin and Gold used in our integrated customers, employees and the communities have made significant progress building a circuit wafers and semiconductor modules. behavior-based safety culture. We are striving We are also participating in the Responsible where we operate, will always grow. As to achieve best-in-class performance by target- Minerals Initiative’s due diligence program for such, we are committed to strengthening our ing zero incidents—emphasizing engagement responsible sourcing of Cobalt; management systems to ensure that we exceed and accountability at all levels of the company; • We supported comprehensive external these expectations. • We exceeded our 2016–2018 resource con- audits of our Corporate Social Responsibility servation goals, completing multiple projects management systems at two manufacturing across our global manufacturing sites to reduce sites in 2018. Our sites in Burlington, Vermont, energy use, water consumption and greenhouse and in Singapore have both achieved Platinum gas emissions as well as lowering our use of recognition from the Responsible Business chemicals and generation of waste. We were Alliance (RBA), receiving full scores of 200 recognized for our environmental performance points in RBA VAP Audits. As a member of the Dr. Thomas Caulfield with significant external awards at several RBA, we also extend its Code of Conduct to CHIEF EXECUTIVE OFFICER manufacturing sites; our global supply chain.

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GLOBALFOUNDRIES is committed to upholding ethical business practices, including human GF established the Ethics & Compliance Office the highest ethical and compliance standards. rights, discrimination, harassment, environ- within the Legal Department to develop, Each of our employees, contractors, and mental responsibility, protection of intellectual coordinate, and support the compliance consultants has the responsibility to carry out property, and anti-corruption. It also explains program and foster a culture of principled his or her duties in a manner consistent with the major elements of our compliance program behavior and decision-making. This Office this commitment. and identifies where employees can seek help is responsible for promoting employee and support. The Code has been communicated awareness, education, and training, as well GLOBALFOUNDRIES’ Worldwide to all employees, and employee training and/or as for creating and implementing a program Standards: Code of Conduct certification on the Code is repeated annually. to assess risks and proactively prevent and The GF Worldwide Standards: Code of Conduct detect unlawful/unethical conduct. The Ethics (Code) is the foundation of our Ethics & GF’s Code is aligned with the Responsible & Compliance Office works closely with the Compliance program and an integral part of our Business Alliance Code of Conduct (RBA Code). Ethics Committee (including the Chief Human Corporate Social Responsibility Management GF joined the RBA in May 2016, following years Resources Officer, Chief Financial Officer, SVP, System. It sets forth the basic rules, standards, of incorporating its Code into our business prac- Global Integrated Supply Chain, Quality & IT, and behaviors that we must follow to achieve tices. We stand committed to the RBA Code and Chief Audit Executive and Chief Legal Officer), our business objectives while upholding its continuous pursuit of excellence in corporate which is the body charged by the Board of our values. The Code summarizes legal and responsibility and the extension of responsible Directors to oversee the compliance program. ethical standards and provides practical advice practices throughout the supply chain. covering a wide range of issues pertinent to

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The GF Ethics First Helpline is accessible Governance Framework management. The Board is composed of our 24 hours a day, 365 days a year, enabling Corporate governance addresses the way in CEO, Dr. Thomas Caulfield; representatives of employees and stakeholders to inquire directly which companies are directed, controlled, Mubadala Investment Company, our shareholder; about the compliance program and report and managed. Our governance framework is and other senior industry leaders. The Board potential violations and other concerns. focused on four pillars: responsibility, fairness, draws on a great depth of experience that spans The Helpline is available to employees and transparency, and accountability. the semiconductor and equipment industries, contractors as well as customers, suppliers, international finance, energy, aerospace, and and vendors globally. We promptly review Board of Directors business development. The Chairman of the all reports, and the company has a strong The Board of Directors (the Board) is the body Board is not an executive officer of the company. non-retaliation policy to protect anyone who charged with the ultimate responsibility for makes a good-faith report. Investigations of ensuring appropriate governance across the Board Committees complaints are overseen by the GF Ethics & organization, and establishes the “tone at Two committees support the Board in carrying Compliance Office, supported confidentially by the top.” out its governance responsibilities: Audit, Risk & other internal organizations such as Internal Compliance; and People & Compensation (see below). Audit and Global Security. The Board reviews and determines the company’s strategy, monitors and assesses The Audit, Risk & Compliance Committee (ARCC) the company’s corporate and financial per- is mandated by the Board to oversee the integrity formance, establishes and monitors effective of financial statements; compliance with legal compliance systems and policies, and and regulatory requirements; the effectiveness oversees the performance of GF’s executive of internal systems and controls (including the

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company’s internal audit function); the risk Support for the Board and its Committees evaluates the effectiveness of risk management, management function; and the independence, With the ARCC, the Legal Department and the internal controls, and governance processes, qualifications, and performance of the Internal Controls Department are mandated and makes recommendations for improvement. company’s external auditors. by the CEO to oversee corporate governance Internal Audit also acts as a bridge between at GF. Together, the Legal Department and the the Board and management, and reports to the The People & Compensation Committee assists Internal Controls Department ensure that the ARCC Committee. the Board in fulfilling its responsibilities concern- organization adheres to the company’s cor- ing the hiring and compensation of our executives porate governance framework and associated In addition, the Compliance Network promotes and in providing guidance to GF’s management policies and procedures, provide guidance, and our culture of principled behavior and decision on personnel and compensation issues. ensure training sessions are conducted on a making. The Compliance Network consists of regular basis. a group of influential employees who serve as GF Chief Executive Officer Ethics & Compliance representatives to help GF’s Chief Executive Officer is responsible Internal and external auditors play crucial identify key compliance risks, drive engagement, for managing the company’s business and is roles in assisting the Board and management. and ensure that training and communications are accountable to the Board. The primary respon- External auditors are responsible for auditing tailored to the needs of the individual sites. sibilities of our CEO and senior management the financial statements of the company. The broadly cover the management of the day- Internal Audit organization plays an important Environmental Health & Safety scorecards are to-day operations of the business, strategic role in providing the Board and senior manage- provided to the ARCC. planning, budgeting, financial reporting, risk ment with objective assurance support for the management, and compliance. business and consulting services. Internal Audit

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Delegation of Authority ensuring that they operate in accordance with Self Assessments and Audits GF is an integral part of the Mubadala Group. An the DOA. On an ongoing basis, management in GF is strongly committed to protecting the important mechanism in maintaining a strong coordination with the ARCC ensures that the fundamental rights of all people. We strive to relationship with our sole shareholder is the DOA is appropriate for the nature of the busi- maintain a fair and open workplace based on shareholder-approved Delegation of Authority ness and that it is reviewed on an annual basis. a culture of respect, dignity, and integrity for (DOA). The DOA allows the shareholder to all. As outlined in our Worldwide Standards: GF exercise control and oversight over the authority Stewardship Committee Code of Conduct, the company strictly forbids all levels within the company. In addition to the oversight provided by the forms of child labor and forced, compulsory, or Board and its committees, the GF Stewardship trafficked labor in the operation of our business The DOA is a critical component of our corpo- Committee is responsible for setting strategic and in our supply chain. rate governance structure. In accordance with direction, conducting management review, the GF DOA, the Board has delegated certain of and providing approval for risk management We respect the rights of employees to associate its powers to the Board Committees, the CEO, and business continuity, global Environmental, freely and have a zero-tolerance policy against and management. The Board, management, Health & Safety (EHS) and Corporate Social harassment, including sexual harassment, or employees, contractors, agents, and anyone Responsibility (CSR) matters. Our Stewardship discrimination based on age, ancestry, color, acting on behalf of GF are responsible for Committee is led by the CEO and includes key marital status, medical condition, mental or members of the Senior Leadership Team. physical disability, national origin, race, religion, political and/or third party affiliation, sex, sexual orientation, gender identity, or veteran status.

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We assess our own conformance with the RBA TABLE 1: GF’s SAQ Scores, SAQ Risk Rating and VAP Scores Code using the RBA’s annual self-assessment 2019 SAQ VAP Audit questionnaires (SAQs) for each of our manufac- Score Risk Rating Score Date and turing sites. To date, our SAQ results are rated (100 points possible) >85% = Low Risk (200 points possible) Type of Audit

as “low risk” for non-conformance with the RBA GF (Corporate) 92.4 Low N/A N/A Code. At selected sites, we are participating in GF Fab 1, 91 Low the RBA’s VAP (Validated Assessment Program), Dresden, Germany

an independent third-party onsite conformance GF Singapore 200 (RBA VAP Platinum May 2019, 89 Low audit. SAQ and VAP audit results are shared (Fabs 2, 3, 5, 7 & 3E) Level Recognition) Closure Audit GF Fab 8, 90.2 Low with our customers within the RBA-Online tool. Malta, New York, U.S.A.

GF’s SAQ scores, risk ratings and VAP scores GF Fab 9, 200 (RBA VAP Platinum December 2018, 88 Low are listed in TABLE 1. Burlington, Vermont, U.S.A. Level Recognition) Initial Audit GF Fab 10, 90.7 Low East Fishkill, New York, U.S.A.

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Risk Management annual review of prioritized risks and our related cybersecurity, physical and product security, GF manages risk at the enterprise, business mitigation strategies, projects, and goals, and trade compliance, logistics, and government function, and manufacturing site levels in we back all these programs and activities with security programs to provide a comprehensive, order to meet our commitments to customers, responsible risk financing. globally integrated approach to security, which the community and employees. Our struc- extends to each employee and their individual tured approach of credible risk assessment, Security Management responsibilities. Annually, we conduct inte- disciplined mitigation, comprehensive threat Protection of information, data and assets is the grated Confidentiality and Security training for awareness and practiced crisis management foundation of GF’s partnerships with customers all employees. enables us to identify critical risks and tar- and suppliers. We adhere to strict policies and get mitigation programs at the appropriate procedures at all times to ensure the security level to avoid loss, disruption, or interruption of company confidential information and the of mission-critical activities and systems. confidential information of our customers and Management and maintenance of risk mitigation suppliers. We pursue certification of our Security and business continuity plans is an on-going Management Systems according to international task, but, in addition, each year our manu- standard ISO 15408 (Information Technology — facturing sites and critical business functions Security Techniques) where it adds additional identify the potential operational and natural value to our existing management systems disaster risks that present business continuity and clients. Our Enterprise Security Council challenges. Executive management conducts an brings together expertise in information and

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Our key stakeholders have a significant interest CUSTOMERS indices that closely align to our customers’ in our business and help shape our company GLOBALFOUNDRIES solutions and manufactur- Quality, Business, Technology, Fulfillment and and the solutions we provide. We regularly ing scale give customers the power to shape Responsiveness targets to quickly adjust when engage with our employees, customers, com- their market. We work closely with industry needed. We conduct third-party customer rela- munities, suppliers, and industry peers, sharing leaders and entrants to identify the right tionship surveys to enable a deeper assessment perspectives and gaining valuable insight opportunities and deliver the right solutions of our performance. We manage customer relevant to our business and operations. across established and emerging applications in issues in our Action Management and Escalation our customers’ respective segments (mobility, system to ensure responsive follow-through to automotive, communications networks and our commitments. We meet with our customers data centers and IoT). We created our Customer on a regular basis to review our performance. Experience program to continually improve the Improvement projects are prioritized based on value of our customers’ partnership with GF. customer feedback. The relationships we main- The program is geared to drive improvements tain through ongoing dialogue and collaboration by listening to our customers and feeding their ensure that we understand our customers’ voice back into our business processes. We expectations, including our shared commitment track internal, customer-facing key performance to social and environmental responsibility.

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EMPLOYEES Employees stay current on corporate and COMMUNITIES At GF we embrace the diversity of our teams as local site information through communication Along with our global footprint comes a respon- a competitive advantage. Our values of Create, channels including quarterly all hands events, sibility to the communities in which we operate. Partner, Embrace and Deliver describe “what the internal bi-weekly global News Digest, Through our worldwide GlobalGives program, we do” as a company (Create & Deliver) and GlobalConnect, the Global Community internal we provide employees at all of our sites with the “how we work together” (Partner & Embrace) social platform, and ongoing corporate and opportunity to make a positive impact in their to enable a culture allowing each individual to employee communications, all of which include local communities in the areas of education, bring their whole self with all their talent and opportunities to ask questions and provide philanthropy, and the environment. Each of our distinctive qualities to GF. We take great pride feedback. GF also provides the opportunity fab locations has well-established programs and in the dedication and commitment of our global for more in-depth and confidential feedback teams dedicated to enriching the lives of local workforce to our success and work to further via dedicated and third party administered citizens, and we take great pride in their long engage employees at both the global and local employee surveys. In 2018, we conducted history of community involvement. level. We nurture a performance-based culture our second ONEGF survey to understand in an environment that encourages individual employee perspectives on the changes initiated SUPPLIERS development, collaboration and new ideas. We in response to the initial 2017 ONEGF survey Our relationships with our suppliers of goods also feature employees’ professional and per- results, regarding what is working well at GF and services are built on a foundation of trust sonal success stories in our Employees’ Spotlight and what still needs to be improved upon to and integrity. We strive to establish long-term section on GlobalConnect (our company intranet) drive employee engagement and organizational working relationships through mutual perfor- as an inspiration to all fellow employees. success. mance expectations and measures, perfor- mance feedback, and continuous improvement

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plans. We engage with our suppliers through Semiconductor Industry Association (ESIA), the team representing diverse perspectives on periodic business reviews and our Total Supplier World Semiconductor Council (WSC), the Global GF’s business, to provide insights into the Rating (TSR) process. The TSR determines Semiconductor Alliance (GSA), Semiconductor expectations and perceptions of internal and supplier performance with regard to technology, Equipment and Materials International (SEMI), external stakeholders. The Materiality Analysis quality, cost, flexibility, and service including and ZVEI (a leading German electronics trade Team is composed of senior representatives Environmental, Health & Safety (EHS) and association). from Communications; Customer Engineering; Corporate Social Responsibility (CSR). EHS Ethics & Compliance; Global EHS & CSR; Global and CSR expectations are established early in These associations are engaged in a wide variety Supply Management; Human Resources; supplier relationships to improve efficiency and of public policy matters ranging from technology, Global Sales and Business Development; reduce risks throughout the supply chain. We trade, tax, and environmental policy to promoting and Risk Management. The team identified extend our commitment to responsible business STEM (Science, Technology, Engineering, and a broad range of issues of concern which practices to our suppliers, requiring them to Mathematics) education and the adoption of were prioritized with regard to their economic, comply with the RBA Code as well. energy-efficient technologies. SIA, ESIA, the WSC, environmental, and social impacts to GF, as well and SEMI all have active EHS committees. as their perceived importance to internal and INDUSTRY COLLABORATION external stakeholders. The resulting materiality Through our participation—and leadership—in The Materiality Analysis map (FIGURE 1), which determines the scope semiconductor industry trade associations, we This CSR Report and metrics focus on certain and content of this report, was reviewed gain valuable insight into the economic, social, Corporate Responsibility topics that we consider and approved in 2017. The GF Stewardship and environmental trends that affect our busi- “material” to our business. We periodically Committee confirmed it remained valid as of ness. These groups include the Semiconductor conduct a Materiality Analysis by engaging a year-end 2018. Industry Association (SIA), the European

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FIGURE 1. GLOBALFOUNDRIES’ Materiality Map

Customer Satisfaction Supplier Responsibility and Data Protection Ethical Business Practices Conflict Minerals and RBA Code Conformance Economic Performance Community Economic Impacts and Relations Employee Health and Safety Risk Management Eco-efficiency – Emissions, Diversity and Equal Opportunity Compliance Waste and Effluents Eco-efficiency – Resource Use

Human Rights Data Privacy

Training and Education, Employment, Employee personal and STAKEHOLDER CONCERN LEVEL Employee Benefits professional development

Economic Governance and Ethical Business Social / Employment Environmental Community COMPANY IMPACT LEVEL

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GLOBALFOUNDRIES requires that our suppliers standard contract templates, Purchase Order Annually, we ask the designated major follow ethical and responsible business prac- Terms and Conditions, Global Supplier and suppliers to provide a signed certification tices. Our manufacturing supply chain consists Subcontractor Management Policy, and Material acknowledging their understanding of the RBA primarily of suppliers of highly specialized Qualification Procedure. Code and our requirement to be in conformity, semiconductor manufacturing equipment along with self-assessment information using and materials. We also work with suppliers of Furthermore, we have implemented a supplier RBA questionnaires and tools (such as RBA- specialized business services ranging from fab RBA Code conformity assessment and verifica- Online, RBA’s supply chain risk assessment design and construction to IT consulting. The tion process directed at GF “major” suppliers. platform) or equivalent methods. GF applies majority of our manufacturing suppliers operate The composition of the major supplier list is a risk-based approach for selected major in the United States, Japan, Singapore, Germany based on documented criteria that are related suppliers to provide evidence of RBA Code and other EU countries, and Taiwan. There is to supplier spend, supplier facility location, and conformity, through VAP (Validated Assessment also a small, but growing number of suppliers nature of supplier business. In 2018 close to 60 Program) reports or targeted document reviews from the People’s Republic of China. suppliers were designated as major suppliers. performed by GF staff. Where corrective actions The list was comprised of manufacturing tool are identified, either in RBA VAP audits or from GF is a member of the Responsible Business suppliers, silicon wafer and specialty chemical GF targeted document review, we work closely Alliance (RBA) and is committed to the RBA suppliers, outsourced manufacturing - mostly with our suppliers to implement them in order Code of Conduct and its continuous pursuit outsourced test and assembly (OSAT) suppliers, to improve their business practices. of excellence in corporate responsibility and labor recruitment agencies, and on-site service extension of responsible practices throughout suppliers, such as janitorial, security and the supply chain. Our requirement that suppliers canteen services. conform with the RBA Code is included in our

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TABLE 2. GF Supplier RBA Code Conformity Assessment and Verification - 2018 Program Overview by Supplier Category Outsourced Manufacturing Materials (Wafers On-Site Recruitment All Supplier Manufacturing Tools and Chemicals) Services Agencies Categories RBA Site SAQs 20 23 58 1 0 102 Self-Assessments RBA SAQ Equivalent Information 0 0 0 11 5 16 Audits and RBA VAP Audits 11 0 1 1 0 13 Document Reviews GF RBA Targeted Document Review 0 0 0 8 2 10 Suppliers / Sites with Corrective 7 0 0 0 0 7 Action from RBA VAP Audit Corrective Action Suppliers / Sites with Corrective Action 0 0 0 8 2 10 from GF RBA Targeted Document Review Corrective Action Closed 3 0 0 5 2 10

Within the 2018 program cycle, more than 110 RBA VAP audits were conducted at 13 major To ensure that our supplier requirements are self-assessment responses were obtained from supplier sites, mostly at OSAT suppliers, well understood, supplier leads within GF Global major suppliers. GF reviewed all self-assessment resulting in the identification of corrective Supply Management department receive training information and followed up with targeted docu- action for seven major supplier sites. In total, regarding the RBA Code, focused specifically ment review or a request for VAP audit information as of June 2019, ten major supplier sites have on its escalation into the supply chain and the where the self-assessment indicated a higher completed corrective actions identified in results of our Code verification process. Where potential risk of non-conformity to the RBA Code. the 2018 review, while seven major supplier applicable, the annual results of RBA Code sites currently are working towards closure, conformity assessment and verification process GF conducted targeted document review for respectively preparing for VAP closure audits are included in our Global Supplier Ratings. eight onsite service suppliers and for two labor (a formal on-site verification conducted by recruitment agencies. Several corrective actions 3rd-party auditors). were identified related to labor practices.

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Responsible Minerals Sourcing: The commodities we purchase that contain Exchange Commission’s (SEC) Conflict Minerals Conflict Minerals—Achieving a DRC tantalum, tungsten or cobalt include high-pu- Rule, we routinely provide due diligence Conflict-Free Supply Chain rity targets used in physical vapor deposition information using the RMAP’s industry-standard GF requires all materials to be sourced respon- (PVD) and process gases and chemicals, all reporting tools and processes. sibly—this applies specifically to materials of which are used to deposit ultra-thin metal potentially sourced from conflict-affected and films onto the wafer surface. Tin and gold are To maintain our DRC Conflict-Free supply chain high risk areas. GF’s Conflict Minerals policy used in post-wafer fab process steps, such status, we manage our supply base to control all establishes due diligence expectations for as in interconnect materials in wafer bump or commodities containing 3TG metals. We partner sourcing of minerals and metals, such as tanta- wafer packaging, and in components used for with our suppliers to identify all smelters in our lum, tin, tungsten and gold (“3TG” ) as well as semiconductor module assembly. extended supply chain and ensure they maintain cobalt. The policy specifically prohibits sourcing RMAP conformance. Any new commodities of 3TG metals that contributes to financing GF’s goal is to maintain our 3TG “DRC Conflict- including 3TG metals must be sourced only from armed conflict and human rights abuses in the Free” supply chain—a status that we initially RMAP-compliant smelters. For cobalt, we have conflict regions of the Democratic Republic of achieved in January 2016. DRC Conflict-Free implemented due diligence processes aligned Congo (DRC) and adjoining countries.. sourcing is defined by sourcing 3TG metals with the RMI’s Cobalt Initiative. Our conflict only from smelters listed as compliant by minerals program and progress are reviewed In the complex, multi-step silicon wafer manu- the Responsible Minerals Initiative’s (RMI) periodically by the Stewardship Committee. facturing process, tantalum, tungsten - and in Responsible Minerals Assurance Process some cases, cobalt - are added to achieve the (RMAP). To support our customers’ needs for desired functionalities of integrated circuits. reporting under the United States Securities and

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GLOBALFOUNDRIES relies upon our people to GF is also proud to employ a highly diverse GW’s mission is to create a sustainable framework deliver on our vision and mission. Our strength workforce within our sites. For example, our for the professional development of women through lies in the talent and diversity of our employees, workforce at Fab 8 in New York is drawn from meaningful network connections, leadership activ- who bring a range of capabilities, experiences, local talent as well as experienced profes- ities, speaking events, publications, conferences, and qualifications that give us a competitive sionals from across the United States and the mentoring, community outreach and much more. advantage in our global markets. GF strives to globe representing more than 50 nationalities. Comprised of both women and men, GW boasts create a respectful workplace for our approxi- Similarly, while the majority of our workforce over 1,400 members and is championed by executive mately 16,500 employees, valuing diversity and at Fab 1 in Dresden, Germany, is hired locally, sponsors CEO Tom Caulfield, Emily Reilly (Senior VP enabling employees to learn, grow, and develop the fab is home to employees from 39 nations. Chief Human Resources Officer), Laurie Kelly (VP their talents. We have a zero-tolerance policy Our Singapore employees represent 22 nations. Global Communications), and Mike Cadigan (Senior VP, against harassment, including sexual harass- Customer Design Enablement) along with site executives. ment, and discrimination based on age, ancestry, Established in 2013, our GLOBALWOMEN (GW) color, marital status, medical condition, mental initiative seeks to have a positive impact on GLOBALWOMEN is also closely aligned with the Society or physical disability, national origin, race, reli- GF’s business through the enrichment of its of Women Engineers (SWE) and in October sent 25 gion, political and/or third party affiliation, sex, female employees. Each major GF site has an women to represent GF at WE18 in Minneapolis, MN. sexual orientation, gender identity, or veteran active GLOBALWOMEN chapter: Austin, TX; Hosted annually, WE is the largest conference for status. We respect the rights of employees to Santa Clara, CA; Burlington, VT; and Malta, women in engineering and technology. GF had a strong associate freely. NY, and East Fishkill, NY, all U.S.; Bangalore, presence including a keynote by SVP & Chief Human India, Singapore and Dresden, Germany (the Resources Officer, Emily Reilly at the annual award While we naturally have an international youngest chapter—inaugurated on 2019 dinner as well as plenary presentations from seven workforce due to the span of our global locations, International Women’s Day). other GF women.

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TABLE 3: GF Workforce Composition by Region, Gender, Workforce Composition Employment Type and Contract (as of December 31, 2018)* The composition of our global workforce by region, gender, employment

Employee Male Female Total type (permanent / temporary) and nature of contract (percentage of full time Region Category Percentage / Percentage of Subtotals contracts) is presented in TABLE 3, while TABLE 4 provides an overview of the Total 80% 20% 44% composition of our global workforce by employee category, gender, and age. Permanent 99% 98% 98% Temporary 1% 2% 1% U.S** Full time 99% 98% 98% TABLE 4: GF Workforce Composition by Gender, Contingent 0% 2% 1% Employee Category and Age (as of December 31, 2018)** Other 0% 0% 0% Total 67% 33% 37% Permanent 99% 99% 99% Temporary 1% 1% 1% Asia Pac Full time 100% 100% 100% Contingent 0% 0% 0%

Other 0% 1% 1% CategoryEmployee All Employees All Managers Directors above and Vice Presidents and above Senior Leadership Team Board of Directors*** Total 83% 17% 19% Male (Totals) 76% 81% 85% 86% 88% 91% Permanent 97% 96% 97% under 30 14% 2% 0% 0% Male Temporary 3% 4% 3% 30-50 59% 66% 45% 37% EMEA (Age) Full time 96% 74% 93% over 50 26% 33% 55% 63% Contingent 0% 0% 0% Female (Totals) 24% 19% 15% 14% 12% 9% Other 3% 4% 3% under 30 18% 4% 0% 0% Female Total 76% 24% 100% 30-50 62% 71% 53% 50% (Age) Permanent 99% 98% 98% over 50 21% 25% 47% 50% Temporary 1% 2% 1% Total *Numbers in Table 3 include contingent workers and other employees (such as interns, students and apprentices), which Full time 99% 96% 98% both represent a share of less than one percent. Contingent 0% 1% 0% **0.9 percent of U.S. employees (equals 0.4 percent of total) have not self-identified their gender. Other 1% 1% 1% ***The information regarding the composition of GF Board of Directors is as of June 18, 2019.

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Compensation & Benefits Employee Education & Training support our employees’ development through GF’s Global Compensation & Benefits Strategy GF’s company culture leverages the power of mentoring, coaching, professional certifications, is to provide compliant programs which are our people by recognizing the importance of and partnerships with outside organizations. considered competitive against current geo- teamwork and collaboration, increased employee graphical and skill market norms. Our goal is to engagement and empowerment. Our performance management process reflects gain a balance between global standardization our employees’ professional development—it is and local customization, while offering our We provide our employees resources and designed to help employees and managers find employees protection and flexibility with their courses that develop job and career skills and directions through joint goal and development benefit offerings. We recognize that benefit help people manage change. Through our planning, to ultimately deliver results not only for environments vary by country, and therefore global and regional development resources our our company, but as well as for our employees the types of benefit plans we offer reflect the employees own their professional development, themselves. prevailing local market practices. Benefits ranging from communication and leadership under this strategy include healthcare, parental skills to project management and technical skill leave, risk benefits such as personal insurance, growth. We offer instructor-led courses, on-the- retirement savings, time off, educational job-training, and e-learning, including through assistance, and other location-specific benefits. access to an extensive third party online training For example, GF’s approach to parental leave platform. In 2018, the average number of for employees for the birth or adoption of a training hours per employee was 50.5. We also child is based on a combination of national and local leave entitlements implemented through our regional leave policies.

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Health & Safety Our Global EHS Policy and Standards are the At each fab site, GF’s health and safety profes- Protecting the health, safety, and well-being of foundation of health and safety management sionals, management, and employees share our employees, visitors, and communities is our systems at each manufacturing location. The responsibility for implementing the Standards greatest responsibility, one that we embrace Standards provide a consistent standard of through local programs and operating proce- proactively and systematically. We strive to care, and set performance expectations that dures. Health and safety professionals engage continuously reduce occupational injuries and apply globally throughout the company. They with operational personnel to analyze potential illnesses in all of our operations, with an ultimate cover a wide range of health and safety aspects, process hazards and mitigate them according to goal of zero incidents. The GF Journey to Zero including injury and illness prevention, electrical the following hierarchy of controls: incorporates our commitment to accountability safety, chemical safety, and industrial hygiene for each other and for the company. The journey monitoring programs. • Elimination (such as eliminating the use of a emphasizes that no injury is inevitable, and material); together we can create a culture where zero Our OHSAS 18001 certified occupational health • Substitution (such as replacing a hazardous injuries and incidents is the norm. and safety management system is based on process or material with a less hazardous one); these Standards, and in 2017 we transitioned • Engineering controls (including ventilation, equip- ment interlocks, enclosure, segregation, etc.); to an enterprise-wide certification which covers all of our manufacturing locations. Our global • Administrative procedures (developing proce- dures, implementing training, etc.); OHSAS 18001 certificate is available here. • Personal protective equipment (to manage any residual risks, after all other controls have been implemented).

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The Journey to Zero is built on a foundation different sites to drive global integration and to of injuries that result in employees missing of Behavior-Based Safety (BBS), a collabora- identify and implement best practices. In the one or more work days after the day of injury) tive approach that recognizes and facilitates areas related to occupational health and safety, and Severity Rate (SR: measuring the average individual safety awareness and behaviors, with the COEs have focused on workplace monitoring number of days employees were unable to collective results. The Journey to Zero empha- and confirming the effectiveness of engineering work following an occupational injury or illness) sizes communications, engagement, and training and administrative controls that limit potential provide an aligned view of safety performance to encourage safe behaviors. We provide a wide exposures, and sharing best practices related to across the company: range of general and job-specific health and emergency response and pre-purchase evalua- safety training to our employees and contractors. tion of semiconductor manufacturing equipment. FIGURE 2 shows GF’s corporate rates from 2016 through 2018 in comparison to our 2018 goals Our EHS & Risk Management organization Safety Performance in the Workplace and the 2017 U.S. Bureau of Labor Statistics provides a unique platform for collaboration We measure progress on the Journey to Zero rates for the semiconductor industry (with data and integration across the disciplines of Safety, with a range of metrics—both leading and for 2017 being the most recent year for which Environmental, Industrial Hygiene, Health, lagging indicators. We evaluate all occupational these governmental statistics are available). Security, Real Estate, and Risk Management— injuries and illness cases to identify their root united in the pursuit of operational excellence causes and determine appropriate preventive and the mitigation of risks to our people, measures and corrective actions. At the highest communities, and assets. The EHS & Risk level, Total Recordable Injury Rate (TRIR: mea- Management Centers of Excellence (COEs) suring the number of recordable injuries), Lost program provides opportunities for staff from Time Injury Rate (LTIR: measuring the number

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FIGURE 2: GF Corporate Total Recordable Injury Rate, Lost Time Injury Rate, and Severity Rate (2016-2018), as Compared to 2017 U.S. Bureau of Labor Statistics Our Total Recordable Injury Rate increased from Rates for the Semiconductor Industry and GF 2018 Goals

0.24 in 2016 to 0.36 in 2018. The comparable 1.2 2017 U.S. Total Recordable Injury Rate for the 1.0 Total Recordable Injury Rate (Cases per 200,000 Hours Worked) semiconductor industry was 1.0. At the same 0.8 OSHA 2017 Total Recordable time, our Lost Time Injury Rate was 0.17 in 2016 0.6 Injury Rate (NAICS 334413) 0.4 0.33 0.36 and 0.19 in both 2017 and 2018. For comparison, 0.24 GF 2018 TRIR Goal 0.2 the 2017 U.S. Lost Time Injury Rate was 0.3 for (TRIR ) 2016-2018 0

the semiconductor industry. Our Severity Rate Recordable Injury Rate Total

was 1.85 in 2016, and increased to 4.2 in 2017 1.2 due to a relatively small number of incidents 1.0 Lost Time Injury Rate (Lost Day Cases ≥ 1 Day with more lost days. It decreased by 17 percent 0.8 per 200,000 Hours Worked) from 2017 (4.23) to 2018 (3.51). There is no 0.6 OSHA 2017 Lost Time Injury Rate (NAICS 334413) benchmark rate available for the severity rate 0.4 0.2 0.17 0.19 0.19 GF 2018 LTIR Goal from the U.S. Bureau of Labor Statistics. GF 2016-2018 (LTIR) Lost Time Injury Rate 0 established 2018 goals to reduce the Injury Rates (LTIR, TRIR) and the Severity Rate (SR) by 5 4.23 10% below the 2017 values. As described above, 4 3.51 Severity Rate TRIR increased by 8% over 2017, while LTIR 3 (Lost Days per 200,000 Hours Worked)

remained flat, missing the 10% reduction goal. 2 1.85 GF 2018 SR Goal

However, the 2018 SR was 17 percent lower Severity Rate (SR) 2016-2018 1 than 2017, exceeding the 10% reduction goal. 0 2016 2017 2018 GLOBALFOUNDRIES | CORPORATE RESPONSIBILITY REPORT 2019 BACK | MENU | NEXT 28 06 OUR PEOPLE AND WORKPLACE

While GF occupational injury and incident rates chemical exposure for employees working in to share knowledge and drive continuous remained to be better than benchmark through the cleanroom and chemical distribution areas. improvement. We encourage employees to 2018, we continue to pursue our Journey to Zero GF thoroughly reviews all new chemicals before live healthy, active lives, and provide support occupational injuries and incidents. For 2019 we their introduction to our sites, and ensures that through services such as vaccinations, health are applying the same goal setting method as proper safeguards and material handling proce- screenings and surveillance, dietary consulting, in 2018: To reduce the Injury Rates (LTIR, TRIR) dures are in place. Our chemical management on-site fitness facilities, first aid training, and and the Severity Rate (SR) by 10% below the systems at each site provide employees with safety tips for travelers. Annually, our facilities 2018 value. ready access to Safety Data Sheets (SDS) and across the globe hold a themed “Health Day” for identification of appropriate personal protective all employees with information campaigns and Managing Chemicals Safely equipment when necessary. activities to further promote a healthy lifestyle. Semiconductor manufacturing takes place in a highly controlled cleanroom environment. Promoting Health and Well-Being In addition, GF’s Employee Assistance Program Equipment and chemical/gas distribution We place great value on our employees’ overall (EAP) provides all U.S. employees and their systems are completely enclosed, providing health and wellness. Each of our manufacturing families with confidential access to resources to an ultra-clean manufacturing space and safe facilities has an on-site clinic and medical help with life management issues. The Employee working conditions. Stringent material han- professionals who administer health and Assistance Program resources include short- dling procedures include automated chemical wellness programs in collaboration with term counseling sessions, legal and financial delivery systems and sophisticated manufac- Human Resources. Our health professionals services, childcare, eldercare, and adoption turing equipment that incorporates multiple engage globally in the Center of Excellence for references. engineering controls to minimize the risk of Occupational Health and Employee Well-Being

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Our company has a global footprint and with Education Outreach Some of the specific programs we have created it a responsibility to the communities in which GLOBALFOUNDRIES strives to promote, or supported include: we have a presence. Globally, our community develop, and support educational programs programs focus on education outreach STEAM, inside and outside the classroom, as well as in • GLOBALGirls, a summer STEM camp for middle philanthropy and the environment. our homes and local communities. Our many school girls launched in 2017 to inspire our next generation of female science and technology activities include developing, supporting, and leaders and address the gender gap in manufac- Each of our fab locations has well-established expanding upon educational programs in the turing. In July 2018, 33 girls in seventh-through programs and teams dedicated to enriching the STEM (Science, Technology, Engineering, and ninth-grade, were hosted at GF Fab 9 in Essex lives of local citizens, and we take great pride Mathematics) fields at all of our sites. Through Junction, VT, combining the traditional summer in their long history of community involvement. our global STEM initiative, we provide experi- camp experience with an introduction to the fields Through the GlobalGives program, we are build- ential learning opportunities for students and of STEM (Malta, NY, and Burlington, VT); ing upon these grassroots efforts, embracing teachers, facilitate curriculum development and • FIRST® (For Inspiration and Recognition of them as integral to our company identity, and mentoring support for early college high school Science and Technology) Robotics programs, designed to motivate young people to pursue connecting employees and teams to a larger programs, drive programming to encourage education and career opportunities in STEM, international effort. girls to pursue education and career paths in while building self-confidence, knowledge, and STEM, and offer internships, job shadowing, life skills (Malta, NY, East Fishkill, NY and and employment opportunities in advanced Burlington, VT)—Together with its consortium of manufacturing, among others. business partners, GF has collectively pledged more than $1 million to support STEM program- ming along the U.S. Northeast Tech Corridor over six years (2015-2020);

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• Since 2005 GF Dresden has supported site, hosting a STEM field trip for girls from a Together with employees, GF provided aid to the “Jugend Forscht” (“Youth in Science”) including support home, donating STEM teaching aids Kerala and Kodagu flood relief campaign, the the junior segment “Schüler Experimentieren” and science kits to a local school, as well as Cyclone Gaja relief campaign, and the California (“Students Experiment”) Saxony, a regional holding a workshop on alternative energy wildfire relief campaign. competition that encourages young people sources, or giving other local school “show with scientific and creative talents to put their and tell” events about semiconductors in ideas into practice (Dresden, Germany); general and GF (Bangalore, India); At each of our sites, GF and its employees make • GF partnered with the Museum of Innovation • GF Santa Clara has been supporting the local a difference by generously volunteering their time, and Science (“miSci”) in Schenectady, New school district since 2016, including “STEAM” donating goods and donating money through York, to provide exemplary STEM-related edu- (Science, Technology, Engineering, the Arts GlobalGives to support a wide variety of philan- cation to historically-underserved communities and Mathematics) initiatives. thropic causes, helping to improve the quality of in the Capital Region of New York State. GF life in our communities. In 2018 our employees and made it possible for more than 300 school- Philanthropy company made more than 7,000 donations through aged students from four regional Boys and Girls Clubs and one YMCA to experience the We believe the success of our company is GlobalGives, totaling more than US $136,000. immersive science programs and interactive directly related to the health of the communities galleries at miSci during their recent school and regions we call home. Some of the many local programs we have break (Malta, NY,); supported across the company include: • Volunteers from GF Bangalore regularly In 2018, GF launched several worldwide cam- engage on STEM subjects with local schools paigns through our GlobalGives giving platform • Hair for Hope, which promotes awareness of as well as with institutions for underpriv- in response to natural disasters that had childhood cancer. A total of 48 GF Singapore ileged children, examples include hosting employees had their heads shaved in 2018, resulted in extensive damage and devastation. a STEM “Science Fest” at GF Bangalore raising more than US$ 61,300 (Singapore);

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• Food Drives to help fight hunger in local com- • Together with the towns of Malta and Stillwater, Environment munities (Burlington, VT, Malta, NY, Santa Clara, GF established and funded two charitable GF strives to provide our employees with CA, Austin, TX); foundations, specifically designed to benefit the opportunities to make a positive impact on the communities located near our Malta, NY site. • Operation Holiday Happiness, which provides environment, both through volunteer programs These foundations fund and support a wide gifts for needy families in the East Fishkill, NY variety of local community programs, not- and various onsite activities. community, Toys for Tots in Malta, NY; and for-profit organizations, and other charitable Louisenstift gGmbH in Dresden, a charity for causes that have been benefiting the towns of children from disadvantaged families, many of Some of the activities we support include: Malta and Stillwater since the first grants in whom are not able to celebrate Christmas with 2012. With the 2018 awards, the foundations their families; • Dresden’s “Ride your bike to work” campaign, have exceeded US $ 1.5 million in total grants running every year from April to September. • GF Bangalore donated an HPV (Human invested in the communities and continue In 2018 a total of 503 participants travelled Papillomavirus) treatment machine to the Kidwai to retain healthy endowments for sustained, 481,000 km to work by bicycle between April Memorial Institute of Oncology, a regional future giving. and September. As a result of the bike to work center for cancer research and treatment which campaign, more than 67 tons of CO emissions provides services to lower-income patients; 2 that would have been emitted due to car use were avoided; • Biannual Adopt-a-Road Cleanup Days in Malta, NY, bringing employees together to clean a section of local road.

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The annual celebration of Earth Day at GF Our Children to Work Day, delivering environ- • In Singapore, employees of each fab challenged worldwide sites marks a highlight that serves to mental conservation messages in unique and themselves with a fab wide goal pledge, for raise awareness for environmental protection. fun ways to employees and their children. The example our SGP 300mm fab (Fab 7 and 7G) Environmental Health and Safety teams also pledged to collect 500 kilograms of recyclable Some of the specific events that took place on invited local environmental organizations onsite waste and educate at least 100 employees on Earth Day 2018 include: to celebrate Earth Day. The event was a great sustainable living. The pledge was achieved success, with close to the 350 kids and 150 with 1.1 tons of recyclables collected and 232 • Local clean up events at the Elbe river shore adults in attendance; employees trained. (Dresden employees) and the Don Edwards San • In East Fishkill, the site held an Earth Day Francisco Bay National Wildlife Refuge (Santa offering event tables with information on Clara employees); less wasteful eating portions, help on how • In Malta, Fab 8 started Earth Day-related to “recycle, reduce, and reuse” at work and at activities with a week of “Clean and Green home, and proper medication disposal. As an Sweep” during which employees cleaned their additional give-away, packs of wildflower seeds desk/work areas and recycled paper, cardboard, and reusable water bottles were handed out to electronics and other items no longer needed employees; to be recycled. Employees learned about nitrile glove recycling, the do’s and don’ts of recycling onsite, the Fab 8 Commute Program, Fab 8 walking trails, eyeglasses donations, and more. In Burlington, Earth Day is combined with Take

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GLOBALFOUNDRIES is committed to eco- product compliance. Fab 1 (Dresden, Germany) and regulatory compliance. We normalize data efficiency in our manufacturing operations. We has established an ISO 50001-certified energy from operations using an industry standard define eco-efficiency as optimizing the utilization management system. Our certificates are Manufacturing Index (MI). The MI is derived from of resources to yield products meeting stringent available here. the number of wafers manufactured, the number performance and quality criteria. of masking steps in our fabrication processes Fab 8, in Malta, New York, was designed as a (reflecting process complexity), and the total Environmental, Health & Safety “green fab.” The fab and associated administra- area of wafers produced. The normalized rate of Management Systems tive and support buildings include many energy a KEPI thus reflects our eco-efficiency. Our Global EHS Policy and Standards are the and water efficiency features. We applied the foundation of an integrated EHS Management “LEED® green building program” design criteria. In 2016, we re-set our resource conservation System. GLOBALFOUNDRIES has achieved an Admin 1 and Admin 2 office buildings are LEED baseline and goals to address our acquisition of enterprise-wide certification to both the ISO Gold® and the Fab 8.1 fabrication facility is IBM’s Microelectronic Division in 2015; including 14001 environmental management systems LEED Silver®. two manufacturing facilities now known as Fab 9 standard and the OHSAS 18001 occupational in Burlington, VT, and Fab 10 in East Fishkill, health and safety management systems Eco-Efficiency: Our Goals NY. We established a new baseline defined as standard that covers all of our manufacturing We measure our operational EHS performance the first 12 months of our combined operations locations. In addition, our fabs have either been using key environmental performance indica- following the acquisition (from July 2015 through certified under the Sony Green Partner program tors (KEPIs), reflecting resource consumption, June 2016). or maintain equivalent controls to ensure environmental emissions, waste generation,

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Our goal setting approach identifies potential resource conservation opportunities across our Performance against GLOBALFOUNDRIES manufacturing sites. We focus on projects that will drive savings and improve our normalized 2016-2018 Resource Conservation Goals performance rates, using our manufacturing index to compare across technologies. Our goals We are measuring our performance against our for the 2016-2018 period were: 2016-2018 goals in percentage of completion of the initially chartered 2016-2018 resource Electricity: Greenhouse Gas Emissions: conservation projects (FIGURE 3). • Achieve savings in annual electricity • Achieve savings in annual GHG emissions of use of 48 gigawatt hours (GWh); 14,600 metric tons carbon equivalents (MTCE); We have exceeded all of these resource • 18 percent reduction of normalized • 20 percent reduction of normalized greenhouse conservation goals. The vast majority of our electricity consumption* gas emissions* initially planned resource conservation projects Water: Chemical Use: have been completed, specifically for water • Achieve savings in annual water use • Achieve savings in annual chemical use and conservation and the reduction of chemical use 3 of 3.7 Million cubic meters (m ); waste generation of a combined 11,000 tons. and waste generation. Additional projects were • 32 percent reduction of normalized • Recycle and reuse at least 55 percent of identified and implemented from 2016 to 2018. water consumption* hazardous waste generated across the company These also contributed to achieving our goals, for our 2017 and 2018 operations. particularly with regard to reducing energy con- sumption and emissions of greenhouse gases.

* As compared to our baseline: the first 12 months of our combined operations (July 2015 to June 2016)

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GF has established new resource conservation goals, following the FIGURE 3. Performance against our 2016-2018 Resource Conservation Goals same methodology to extend this progress over the 2019-21 period: 500 Electricity: Greenhouse Gas Emissions: • Achieve savings in annual • Achieve savings in annual GHG 44,000 electricity use of 86 gigawatt emissions of 11,900 metric tons 400 hours (GWh); carbon equivalents (MTCE); • 15 percent reduction of • 18 percent reduction of 300 normalized electricity normalized greenhouse gas consumption* emissions* 104 Percent Water: Chemical Use: 200 • Achieve savings in annual • Achieve savings in annual 4.4M water use of 340,000 cubic chemical use and waste 15,100 3 100 meters (m ); generation of a combined 3.7M 48 14,600 11,000 7,100 tons. • 10 percent reduction of normalized water • Recycle and reuse at least 60 0 percent of hazardous waste Water Electricity Greenhouse Gases Chemical/Waste consumption* [m3] [GWh] [MTCE] [Tons] generated across the company Total Reductions Achieved Completed New Projects for our 2019 operations. Original Scoped Reductions Completed Original Projects

* As compared to 2018 baseline normalized rates.

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ENERGY CONSUMPTION FIGURE 4. Absolute And Normalized Electricity Usage – Baseline to 2018

FIGURE 4 shows absolute and normalized 4,000 0.08 electricity consumption at our manufacturing 0.070 0.07 facilities from the baseline to 2018. Absolute 0.065 consumption of electricity in 2018 increased 3,000 0.058 0.057 0.06 less than one percent from the baseline value. At the same time, normalized electricity usage 0.05

decreased 19 percent in 2018 compared to 2,000 3,145 3,136 3,134 3,174 0.04 GWh

the baseline level, exceeding our forecasted kWh / MI reduction of 18 percent by the end of 2018. 0.03

1,000 0.02

0.01

0 0 Baseline 2016 2017 2018 2H’15/1H’16 Absolute Electricity Consumption Normalized Electricity Consumption

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WATER USE FIGURE 5. Absolute and Normalized Water Use – Baseline to 2018

0.7 FIGURE 5 shows absolute and normalized water consumption at our 0.65 manufacturing facilities from the baseline through 2018. In 2018, 0.61 30,000 0.6 absolute water consumption decreased nearly four percent compared 0.55 to the baseline value. Comparing the 2018 normalized water con- 0.5 sumption rate to our baseline shows a decrease (improvement) of 23 0.50 percent which is below our forecasted reduction of 32 percent by the 20,000 0.4 3 end of 2018. 29,112 29,328 29,942 27,979

0.3 Liter / MI We have extensive water reuse and recycling programs in place at our Thousand m manufacturing facilities. In 2018, we achieved a combined corporate 10,000 0.2 water reclaim rate of 62 percent relative to incoming water supply, a 14 percent increase over our reclaim rate at our baseline. “Reclaim” 0.1 includes both water recycling and reuse. Some reclaimed water is used 0 0 as a high-quality raw water supply to our ultra-pure water (UPW) plants Baseline 2016 2017 2018 (defined as “recycling”) as well as for facility operations such as cool- 2H’15/1H’16 ing towers and scrubbers, which can accommodate lower-quality water Absolute Water Use Normalized Water Use sources (defined as “reuse”). In 2018, the average water recycling rate across our fab sites was 41 percent compared to incoming water, a six percent improvement over our baseline recycling rate.

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GREENHOUSE GAS EMISSIONS The potential business risks associated with beyond regulatory requirements, including the climate change are complex, ranging from reg- World Semiconductor Council’s (WSC) 2020 Climate change is a critically important ulatory initiatives affecting energy and process goal to implement best practices in all new challenge impacting our global environment, materials to severe weather events such as semiconductor fabs. Our newest operating fab, human society and the global economy. droughts, flooding, and extreme temperatures. Fab 8 in New York, was built to meet the WSC GLOBALFOUNDRIES monitors our energy con- Climate-related risks, including supply or opera- Best Practices commitment. sumption and greenhouse gas (GHG) emissions tional disruptions due to severe weather events, to understand our climate impacts. We manage are evaluated as part of our risk management our climate-related business risks by conserv- process. We track the development of proposed ing energy, implementing emission controls, and climate legislation around the world and have participating in initiatives to drive industry-wide implemented proactive measures that go well improvements.

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FIGURE 6 shows absolute and normalized direct FIGURE 6. Absolute and Normalized Direct (Scope 1) (Scope 1) and indirect (Scope 2) GHG emissions and Indirect (Scope 2) GHG Emissions – Baseline to 2018 at our baseline, and through 20183. Absolute 800,000 16.0 total GHG emissions were more than five 15.7 percent lower in 2018 relative to the baseline 13.7 12.5 value, with an almost seven percent reduction 11.9 600,000 12.9 12.0 in Scope 1 emissions and a close to three percent reduction for indirect Scope 2 emis- 270,003 264,067 261,217 262,197 sions. Compared to our baseline, normalized 400,000 8.0

2018 GHG emissions were nearly 24 percent MTCE

lower, exceeding our forecasted reduction of 429,189 400,400 418,141 399,249 Gram CE / MI normalized GHG emissions by 20 percent by the end of 2018. 200,000 4.0

0 0 Baseline 2016 2017 2018 2H’15/1H’16 Scope 2 GHG Emissions Scope 1 GHG Emissions Normalized GHG Emissions

3* GLOBALFOUNDRIES quantifies GHG emissions using the following methods: • “The Greenhouse Gas Protocol: A Corporate Accounting and Reporting • For semiconductor process related PFC emissions specifically • GLOBALFOUNDRIES is using the market-based method to quantify Scope 2 GHG emissions Standard (Revised Edition)”; GLOBALFOUNDRIES uses Tier 2 methods of IPCC Guideline for GHG from the “GHG Protocol Scope 2 Guidance”. The market-based method reflects emissions Inventories V3_Chapt6 Electronics Industries and U.S. EPA reporting from the electricity that a company purchases, which in some cases may be different from • GWPs used are from IPCC Fourth Assessment Report (AR4 – 100 year); methods under Subpart I of the GHG Mandatory Reporting Rule (MRR); the electricity that is generated locally and distributed via the local grid.

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FIGURE 7 shows absolute and normalized FIGURE 7. Absolute and Normalized total PFC (perfluorocompound) emissions at PFC Emissions – Baseline to 2018 our baseline and through 2018. PFC gases 400 8

are used in semiconductor wafer etching and 6.9

Chemical Vapor Deposition (CVD) chamber 6.2 cleaning. Absolute PFC emissions decreased 300 5.9 6 by more than four percent in 2018 compared to 5.3 our baseline, while normalized PFC emissions decreased by more than 23 percent. Our 200 4 300mm fabs in Dresden (Fab 1) and New York

307 299 318 294 Grams CE / MI

(Fabs 8 and 10) were designed to produce Thousand MTCE extremely low emissions of PFCs by using low-emission gases in CVD chamber cleaning, 100 2 coupled with near-universal use of point-of-use abatement equipment for PFC-using processes. 0 0 Baseline 2016 2017 2018 2H’15/1H’16 Absolute PFC Emissions Normalized PFC Emissions

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FIGURE 8. Absolute and Normalized Hazardous Waste Generation – Baseline to 2018 4 HAZARDOUS WASTE* 60,000 1.0 10,004 0.84 8,118 0.86 0.75 0.8 FIGURE 8 shows the absolute and normalized hazardous waste genera- 8,182 0.80 40,000 tion at our baseline and through 2018. Absolute hazardous waste gener- 8,390 0.6

ation increased by 43 percent in 2018 compared to the baseline. During Tons 0.4 Grams / MI the same time, the normalized rate of hazardous waste generation 20,000 33,346 40,761 43,176 47,864 increased by 15 percent. The rise in absolute and normalized hazardous 0.2

waste generation correlates with the continued growth of the number 0 0 Baseline 2016 2017 2018 of wafer cleaning steps in advanced processes. These cleaning steps 2H’15/1H’16 Beneficially Recycled / Reused Byproducts Absolute Hazardous Waste Generation (U.S Fabs only – Category is excluded from require increased use of UPW and cleaning chemicals such as sulfuric Normalized Hazardous Waste Generation U.S. definition of hazardous waste) acid. We are actively investigating ways to reduce water and chemical use to ultimately reduce hazardous waste and have piloted projects in FIGURE 9. 2018 Disposal Methods for Hazardous Waste late 2018 that are expected to drive improvements and reverse the trend. and Beneficially Recycled and Reused Byproducts5

3% Burned for Fuel Recovery Off-Site FIGURE 9 shows a breakdown of the disposal methods for hazardous 27% Treated Off-Site 17% Beneficially Recycled and Reused waste (including byproducts beneficially recycled and reused) gener- 5% ated in 2018. We exceeded our 2018 goal to recycle and reuse at least Incinerated Off-Site 2% 55 percent, as more than 63 percent of total hazardous waste was Landfilled Off-Site

recycled or reused. In 2018, two percent of total hazardous waste 46% Recycled was sent to landfill. or Reused

4 The classification of waste as “hazardous” is determined by the respective regulations that apply to our manufacturing sites. 5 We also include the category “byproducts beneficially recycled and reused”, which is applicable only to our U.S. sites because reclaimed material is excluded from the U.S. EPA definition of hazardous waste. GLOBALFOUNDRIES | CORPORATE RESPONSIBILITY REPORT 2019 BACK | MENU | NEXT 42 08 SUSTAINABLE MANUFACTURING

25,000 FIGURE 10. Absolute and Normalized Non-Hazardous Waste Generation – Baseline* to 2018 NON-HAZARDOUS WASTE GENERATION 20,000 0.48 0.50

0.39 FIGURE 10 shows absolute and normalized non-hazardous waste 0.40 15,000 0.34 generation at our baseline and through 2018. Absolute non- 0.29 0.30 hazardous waste generation was 11 percent lower in 2018 than Tons

10,000 21,296 19,024 15,890 18,881 Grams / MI

at our baseline; however, it increased by 19 percent from 2017 0.20 to 2018, whereas normalized non-hazardous waste generation 5,000 was 29 percent lower than the baseline. The rate increased by 0.10 16 percent from 2017 to 2018. Non-hazardous waste generation 0 0 Baseline 2016 2017 2018 increased in 2018 due to a building demolition project at our Fab 2H’15/1H’16 Absolute Non Hazardous Normalized Non Hazardous 10 site in East Fishkill, NY which commenced in Q4 2018. Waste Generation Waste Generation

FIGURE 11 shows the breakdown of the disposal methods for FIGURE 11. 2018 Disposal Methods for Non-Hazardous Waste non-hazardous waste generated in 2018. 65 percent of non- hazardous waste generated by GLOBALFOUNDRIES in 2018 was 23% Landfilled Off-Site recycled or reused.

65% 4% Treated Off-Site Recycled or Reused

8% Incinerated Off-Site

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AIR EMISSIONS NY, and Fab 10 in East Fishkill, NY, have control EHS COMPLIANCE technology that utilizes rotary concentrators We are committed to a “Beyond Compliance” All of our manufacturing facilities operate followed by thermal oxidation. In 2018 our Fab approach, seeking to exceed the requirements within air quality conditions permitted by local 7 facility in Singapore commenced a project to of applicable regulations. We implement consis- regulatory agencies. The primary air emissions install a rotary concentrator. This technology tent and rigorous EHS standards, management from our facilities include corrosives (acids and uses highly adsorbent zeolite materials to cap- systems, metrics, external reporting, and bases) and volatile organic compounds (VOCs). ture VOCs, which are subsequently desorbed, compliance assurance programs. Our manu- producing a low-volume exhaust stream with facturing sites perform internal reviews as part We employ wet scrubbers to neutralize a higher concentration of VOCs. This more of their EHS Management Systems and are corrosive emissions and treat the scrubber concentrated exhaust stream is then treated routinely inspected by regulatory authorities. water in on-site wastewater treatment systems with greater efficiency through a combustion prior to discharge. For VOC emissions reduction, process that destroys as much as 98 percent of In 2018, inspections and regular compliance most sites use thermal oxidation or carbon bed the VOCs. reporting across our global locations resulted adsorbers. Fab 1 in Dresden, Fab 8 in Malta, in two notices of violation (NOVs). All issues are being corrected in communication with the respective regulatory authorities. No financial penalties were assessed for NOVs received in 2018. In 2018 GLOBALFOUNDRIES Singapore paid penalties of approximately US $4,800 related to two January 2016 wastewater discharge violations.6

6 This is a restatement to our 2018 Corporate Responsibility report that reported a penalty of approximately US $1,900 related to one January 2016 wastewater discharge violation. GLOBALFOUNDRIES | CORPORATE RESPONSIBILITY REPORT 2019 BACK | MENU | NEXT 44 09 PRODUCT STEWARDSHIP

We enable our customers’ success with our Quality Management Systems In the quest to continually improve our broad range of solutions and our manufac- GLOBALFOUNDRIES’ Quality Management customers’ experience when partnering with turing expertise, supported by our Quality System is in place to ensure that our products GF, we listen to our customers and feed their Management Systems, while at the same meet or exceed customer specifications on voice back into our business processes and time keeping a focus on opportunities to quality and reliability for all industries and systems. We manage customer issues in our reduce their environmental footprint. We take markets. We are dedicated to a “zero excur- Action Escalation system to ensure respon- action to reduce the potential health, safety, sion, zero defect” mission in all aspects of our sive follow-through with our commitments. environmental, and social impacts of the product realization and business processes. We track internal, customer-facing key perfor- product life-cycle stages under our control. mance indices that are closely aligned to our All GF manufacturing facilities worldwide obtain customers’ Quality, Business, Technology, certification to international quality standards that Fulfillment, and Responsiveness targets. validate the effectiveness of the quality man- Finally, we conduct third-party customer agement system in support of market segments. relationship surveys every year to ensure our These include ISO 9000, and extend as needed customers notice the improvements we’re upon our regular review to market-specific making. Our quality management system is standards for automotive (IATF-16949) and described further here, including copies of aerospace (AS9100) products. Our advanced third-party certification certificates. quality system builds upon these internationally recognized standards, codifying the requirements to ensure product quality, including robustness of the management system and infrastructure.

GLOBALFOUNDRIES | CORPORATE RESPONSIBILITY REPORT 2019 BACK | MENU | NEXT 45 09 PRODUCT STEWARDSHIP

Enabling Energy Efficiency FD-SOI Technology—22FDX® Making intelligent use of the generic FD-SOI GF’s solutions provide energy-efficient and 12FDX™ Technologies features, GF’s 22FDX® and 12FDX™ technol- technologies for high-performance FD-SOI technologies (Fully Depleted Silicon ogies feature significant low power, low cost applications as well as those that depend on Insulator technologies) employ an ultra- and power efficiency advantages for designing on long battery times. GF’s 14/12nm FinFET thin oxide insulator placed on top of the base differentiated solutions for mobile application solution enables energy efficiency for silicon. On top of this oxide insulator a very processors, wireless networking, Internet of performance-hungry applications (servers, thin silicon layer creates the transistor channel. Things (IoT) and automotive markets. 22FDX® CPUs, GPUs, and others), driving system Due to the thinness of this layer, no channel has been designed as a low-capacitance performance within a given power envelope doping is required, making the transistor technology that allows a designer to take (i.e. increasing system performance within “fully depleted”. The FD-SOI structure results advantage of ultra-low operating voltages given power requirements). in much better transistor characteristics as well as of dynamic power consumption compared to traditional bulk CMOS technol- control: A unique FDX feature enables the chip Another approach focuses on minimizing power ogy, reducing leakage current and parasitic to dynamically switch back and forth between consumption for a given set of performance capacitance, thus making the transistor more high-performance and low-power operation, requirements. GF’s FDX technologies are energy-efficient. boosting performance in the moment it is designed to span a wide range of applications needed while reducing the static leakage to a where power and energy efficiency matters most. minimum when the performance is not needed.

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Additionally, the FDX technology platform is Additional Energy-efficient Technologies Advanced Packaging designed to integrate a multitude of func- Our focus on technologies that enable energy Along with energy-efficient silicon technolo- tionsalities into a single system-on-chip. efficiency extends beyond advanced tech- gies, advanced packaging helps reduce power The result being that customers can thus nology nodes. We also offer solutions for consumption, improve energy efficiency and easily integrate digital, analog, and RF (radio power-management integrated circuits (PMICs) shrink footprint of the final product. frequency) functions onto a single chip for and power converters. Our growing portfolio is intelligent, power efficient and fully integrated continuously expanding for higher voltages. GLOBALFOUNDRIES’ advanced packaging system solutions. The 12FDX platform extends enables an integrated chip set where multiple our FD-SOI offering further, offer full node-on- GF’s Analog and Power processes include chips of different functionalities and tech- node scaling and performance improvements highly competitive DMOS Power FETs that nology nodes are closely integrated into one to enable new applications and architectures. enable maximum power conversion efficiency package, either horizontally (2.5D) or vertically to aid in extending battery operating time. For (3D). This approach allows for optimizing per- example, GF BCDlite™ and BCD technologies formance, energy efficiency and manufactur- are developed for efficient power conversion ing cost both at the system level and for each and battery management in applications like functional unit. Our 2.5D interposer technology electric vehicles and portable devices. The offers superior flatness and fine lines with ability to control, monitor and optimize battery high reliability reducing the replacement need. performance for long life and safety enables Higher density of integration with energy-ef- widespread adoption of non-polluting trans- ficient benefit can be achieved in 3D die portation and lifestyle products. stacking offered by our direct wafer-to-wafer bonding technology. To further improve energy

GLOBALFOUNDRIES | CORPORATE RESPONSIBILITY REPORT 2019 BACK | MENU | NEXT 47 09 PRODUCT STEWARDSHIP

efficiency of power delivery in the system, GF Materials Management jurisdictions, such as China RoHS, and other developed deep-trench capacitor which plays a and Product Compliance legislation that regulates substances con- vital role for in-proximity voltage regulating of All GF sites have chemical review and approval tained in products (also called “articles”). This the computing unit. systems in place to ensure that only approved includes the EU Regulation on Registration, materials are used in wafer fabrication. Our Evaluation, and Authorization of Chemicals Even more energy can be saved in cloud data material qualification process assesses (REACH) provisions on the presence of centers by our Silicon Photonics solution which materials relative to our specification for designated Substances of Very High Concern enables faster optical connectivity solutions Banned, Restricted, and Declarable Materials (SVHCs). Our specifications also require at high integration, easy assembly and low Management, which includes both regulatory packing material suppliers to meet applicable cost. These differentiated technologies were and customer-driven requirements. We extend substance restrictions. generated with the state-of-the-art tooling and these requirements to our manufacturing processes in GF’s Packaging Differentiation partners that provide semiconductor foundry, GF has programs in place to obtain analytical Line which also allow developing tailored assembly and test services. Applicable regula- evidence of product compliance (such as RoHS solutions for customer request and bringing it tory requirements include the EU Directive on and halogen-free requirements). We make to volume production. restricted use of certain hazardous sub- these reports and other product compliance stances in electrical and electronic equipment documentation available to customers on (RoHS Directive), its sister directives in other GlobalFoundryView, our customer portal.

GLOBALFOUNDRIES | CORPORATE RESPONSIBILITY REPORT 2019 BACK | MENU | NEXT 48 10 SITE PROFILES: FAB 1 – Dresden, Germany Wafer Size: 300mm Management System Certifications: ISO 9001, IATF 16949, ISO 14001, Technology: 55nm, 45nm, 28nm, 22nm OHSAS 18001, ISO 50001, Sony Green Partner

Groundbreaking for Fab 1 in Dresden took place COMMUNITY RELATIONS SUSTAINABILITY FEATURE: in October 1996. The grand opening of the first Located literally fence to fence with its neighbors in Low Greenhouse Gas Emissions production clean room followed in 1999, and the 800-year-old villages of Wilschdorf and Boxdorf, Fab 1 was designed for extremely low emissions the Dresden site has continued to expand ever the Dresden site participated in its first local town of PFCs, which is accomplished by utilizing since. In 2009, the Dresden site became the hall meetings back in 1996 and continues to do so low-emission gases in CVD chamber cleaning, first GLOBALFOUNDRIES fab when the company today. GF Dresden supports various neighborhood coupled with near-universal use of point-of-use was divested from Advanced Micro Devices, Inc. associations and activities such as local heritage abatement equipment for PFC-using processes. (AMD). With more than 52,000 square meters of societies, volunteer fire brigades and choirs. Highly efficient natural gas powered trigeneration cleanroom, Fab 1 is the largest semiconductor plants power Fab 1, along with a small fraction of manufacturing site in Europe. The Dresden site’s Community Affairs Program has electricity from the Dresden public grid. a strong focus on educational youth projects. As a GF Dresden significantly contributes to the leading tech company, the Dresden site is driving Awards: advancement of leading-edge semiconductor a considerable number of educational projects • 2018 Piepenbrock Gold Seal Award for industry in Europe, Germany, and specifically the focused on STEM activities with K–12 students. implementation of an ecological building high-tech cluster in Saxony. The region currently Jointly with other long-term partners, GF Dresden cleaning system; counts approximately 2,300 high-tech companies is a sponsor of the renowned youth tech competi- • 2018 Corporate Health Award Seal of Excellence with more than 60,000 employees. tion “Jugend forscht” (“Young Scientists”). for sustainable work in the area of maintaining and promoting employee health; • 2019 Saxony Environmental Alliance’s Certificate of Recognition for environmental management measures that go beyond regulatory compliance.

GLOBALFOUNDRIES | CORPORATE RESPONSIBILITY REPORT 2019 BACK | MENU | NEXT 49 10 SITE PROFILES: Singapore Wafer Size: 300mm / 200mm Management System Certifications: ISO 9001, TS 16949, ISO 14001, OHSAS 18001, Technology:180nm–40nm Sony Green Partner; Fab 7 and Fab 3E: ISO 15408 (Common Criteria).

GLOBALFOUNDRIES Singapore stretches across COMMUNITY RELATIONS water recycling capabilities in place and achieved two campuses. The main Woodlands campus is Since 2006, the GF Singapore site has held an a 72 percent recycling rate in 2018 as compared to home to one 200mm “GIGA fab” (Fabs 2, 3 and 5) annual Hair for Hope fundraising event benefiting incoming water.1 and one 300mm fab (Fab 7). The second campus the Children’s Cancer Foundation (CCF). GF houses one 200mm fab (Fab 3E) in Tampines, donated a total of S$84,483 (US $61,385) to Furthermore, more than 95 percent of the water 30 minutes away from the main campus. These the program in 2018 and altogether has raised consumed at GF Singapore is NEWater, which is facilities comprise nearly 11 soccer fields of more than S$1M over the last 12 years. This reclaimed and treated wastewater supplied by the cleanroom space. The history of our GIGA fab signature event serves to raise funds and promote Singapore Public Utilities Board. Using NEWater goes back to 1995 when Fab 2 first started awareness of childhood cancer. GF Singapore supports Singapore’s water conservation strategy production. Our 300mm Fab 7 commenced also supports regional STEM (Science, Technology, to reserve high-quality potable water for domestic operation in 2005, and has evolved ever since, Engineering and Mathematics) activities such as consumption. with the last significant extension during 2016, providing insights into high-end technology to when our former 200mm Fab 6 was converted students from a number of universities. Awards to 300mm technology and merged into Fab 7. • 2019 Responsible Business Alliance (RBA) VAP The GF Singapore fabs were previously owned SUSTAINABILITY FEATURE: Audit Platinum Recognition for achieving the by Chartered Semiconductor Manufacturing and Resource Efficiency maximum score of 200 following closure of were acquired by GF in 2010. In January 2019 Resource efficiency is a priority for the Singapore action items from its September 2018 VAP Audit; we announced our plans to transfer ownership site team—energy and water conservation • 2018 Singapore Energy Efficiency National of Fab 3E in Tampines to Vanguard International programs are continually pursued. For example, Partnership Award - Category Best Practices Semiconductor (VIS) at the end of this year. our Singapore fabs have extensive state-of-the-art for replacing a hot UPW rinse process with a cold UPW rinse.

GLOBALFOUNDRIES | CORPORATE RESPONSIBILITY REPORT 2019 BACK | MENU | NEXT 50 10 SITE PROFILES: FAB 8 – Malta, New York, USA Wafer Size: 300mm Management System Certifications: ISO 9001, Technology: 14nm–12nm ISO 14001, OHSAS 18001.

In 2009, GLOBALFOUNDRIES broke ground for education and career opportunities in STEM, while • An innovative system that uses heat recovery construction of our Fab 8 300mm wafer manu- building self-confidence, knowledge, and life skills. chillers to meet the fab’s year-round base facturing facility in Malta, New York. Total capital Together with its consortium of business partners, cooling load and recover the heat for site investment for the Fab 8 campus now exceeds GF has collectively pledged more than $1.5 million needs instead of removing it with cooling $15 billion. The majority of this investment has to support STEM programming and community, towers. The system meets 40 percent of the been directed towards our advanced 14/12nm civic, athletic and non-profit organization funding, site’s heating load with recovered heat; technologies. With 40,875 square meters of along the Northeast Tech Corridor over six years • A fab-wide “Green Mode” strategy for point cleanroom space and continued expansion, GF’s (2015-2020) with an additional $1.1 million in site of-use abatement systems and for a signifi- Fab 8 is one of the leaders in advanced manufac- development and construction of an athletic fields cant portion of the installed base of vacuum turing in the U.S. Fab 8 is a cornerstone of upstate complex for public use in Saratoga County (Malta/ pumps. New York’s “Tech Valley” region and is the largest Stillwater) . Awards: public-private sector industrial investment in New • 2018 Kimberly Clark Greenovation Award for York state’s history. SUSTAINABILITY FEATURE: Nitrile glove recycling; Green Building Design: • 2018 National Pollution Prevention Roundtable COMMUNITY RELATIONS: The Fab 8 campus integrated green building MVP2 (Most Valuable Pollution Prevention) Award Along with donations to those in need within the principles and practices as part of the site design, - Partnering for Best Practices in Sustainable local community, the site’s community relations construction and operation. This includes Semiconductor Manufacturing (Sulfuric Acid Use program supports local education through and Waste Reduction); • High-efficiency motors, chillers, boilers, fan numerous initiatives. Jointly with the GF Fabs • Admin 1 and Admin 2 office buildings are LEED filters for the cleanroom, and vacuum pumps; in East Fishkill, NY and Burlington, VT, Fab 8 Gold®. Fab 8.1 fabrication facility is LEED Silver®. supports FIRST® (For Inspiration and Recognition of Science and Technology) robotics programs, designed to motivate young people to pursue

GLOBALFOUNDRIES | CORPORATE RESPONSIBILITY REPORT 2019 BACK | MENU | NEXT 51 10 SITE PROFILES: FAB 9 – Burlington, Vermont, USA Wafer Size: 200mm Management System Certifications: ISO 9001, TS 16949, Technology: 350nm–90nm ISO 14001, OHSAS 18001, Sony Green Partner

IBM broke ground on its Vermont facility located SUSTAINABILITY FEATURE: Awards: on the banks of the Winooski River near Burlington Legacy of environmental excellence • 2019 Responsible Business Alliance (RBA) VAP in 1957. Since then, the campus has grown and Noted for its long-term environmental excel- Audit Platinum Recognition for achieving the evolved into a major semiconductor manufacturing lence, the Burlington site has received extensive maximum score of 200 in its 2018 VAP Audit; site. GLOBALFOUNDRIES acquired the site as part recognition, including numerous national, regional • 2019 Vermont Governor’s Excellence Award in of the IBM Microelectronics business in 2015. GF’s and state awards for its pollution prevention and Worksite Wellness – Silver level; Fab 9 is the largest private for-profit employer in energy management results and initiatives. In • 2019 Seven Seals Award presented in recogni- the state of Vermont. 2018 Fab 9 received the Governor’s Award for tion of Employer Support of the National Guard Environmental Excellence for the 25th consecutive & Reserve; COMMUNITY RELATIONS: year. In 2016, Fab 9 transferred unused land to • 2018 National Pollution Prevention Roundtable’s The site has an extensive history of community Green Mountain Power to develop a 4.7 MW solar MVP2 (Most Valuable Pollution Prevention) involvement and is well known for its dedication power generation facility, the state’s largest at that Award (Chemical Use Reduction in Chemical and passion to the community, whether through time, providing benefits to local communities, GF Mechanical Polish); charitable contributions or volunteering during and the environment. • 2018 Vermont Governor’s Environmental its “Days of Caring”. In addition, the “Bridge the Excellence Award (Elimination of Legacy Wet Gap” and Calendars for Charity programs helped Chromium Etch Processing In Photomask provide local charities with valuable contribu- Manufacturing). tions. Burlington employees are very passionate about K–12 outreach, taking part in FIRST® (For Inspiration and Recognition of Science and Technology) Robotics activities jointly with Fabs 8 and 10 in New York.

GLOBALFOUNDRIES | CORPORATE RESPONSIBILITY REPORT 2019 BACK | MENU | NEXT 52 10 SITE PROFILES: FAB 10 – East Fishkill, New York, USA Wafer Size: 300mm Management System Certifications: ISO 9001, AS 9100C, Technology: 90nm–22nm ISO 14001, OHSAS 18001, Sony Green Partner

Originally developed by IBM in 1962, the site COMMUNITY RELATIONS: SUSTAINABILITY FEATURE: grew and evolved into a major R&D and man- East Fishkill employees have always prided them- Recycle and Reuse ufacturing center. The East Fishkill site joined selves on being good neighbors, giving generously Fab 10 produces two commercial chemical GLOBALFOUNDRIES as part of the acquisition of to the local community through charitable dona- products for reutilization from the wastewaters IBM’s microelectronics business acquisition in tions and volunteering, such as collecting toys for generated by its 300mm manufacturing operations: 2015 and is now known as GF Fab 10. In April less fortunate children and collecting and donating A sulfuric acid wastewater is segregated to pro- 2019, we announced the launch of our strategic food to local food banks. East Fishkill employees duce a spent sulfuric acid product and ammonia partnership with ON Semiconductor, through also support a Treat the Troops program and the wastewater is distilled to produce an ammonium which GF will transfer ownership of our Fab 10 GF Calendars for Charity campaign. hydroxide solution for reuse in off-site catalytic air facility in East Fishkill, NY to ON at the end of 2022. emission abatement systems. The site also participates in a number of STEM (Science, Technology, Engineering and Groundwater treated through IBM groundwater Mathematics) activities, including FIRST Robotics, remediation activities (approximately 25 percent of along with Fab 8 in Malta, NY and Fab 9 in site water usage) is also reused in the production Burlington, VT. of ultra-pure water.

GLOBALFOUNDRIES | CORPORATE RESPONSIBILITY REPORT 2019 BACK | MENU | NEXT 53 11 ABOUT THIS REPORT

The GLOBALFOUNDRIES 2019 Corporate Data presented in this report reflect calendar We value and encourage your feedback on this Responsibility Report is our fifth comprehensive year 2018. The data were compiled from report. Please send comments or questions to corporate social responsibility and sustainability facilities owned or operated by GF during CSR@globalfoundries.com. report. The last report was published in 2018 the reporting period and validated using our and covered 2017 data. internal processes. No significant change in material topics as relevant to this report We use the Global Reporting Initiative (GRI) occurred during 2018. G4 Sustainability Reporting Standards and self-declare that this report has been prepared in accordance with the GRI Standards: Core option.

GLOBALFOUNDRIES | CORPORATE RESPONSIBILITY REPORT 2019 BACK | MENU | NEXT 54 12 GRI CONTENT INDEX

GRI Standard Title GRI Standard Disclosure CSR Report 2019 Explanatory Comment / and Publication Year Disclosure Number Title Section Direct Information Coverage General Disclosures 102-1 Name of the organization Company Profile Full Throughout 2018 GF took numerous steps to pivot our business to become the world’s leading differentiated semiconductor Significant changes to the 102-10 – foundry. None of these changes affected Full organization and its supply chain the company’s ownership, the location of manufacturing facilities, or the nature of our supply chain during the reporting year Precautionary Principle 102-11 Sustainable Manufacturing Full or approach 102-12 External initiatives Stakeholder Engagement Full 102-13 Membership of associations Stakeholder Engagement Full Statement from senior GRI 102: General 102-14 CEO Statement Full Disclosures 2016 decision-maker Values, principles, standards, 102-16 Governance Full and norms of behavior Mechanisms for advice and 102-17 Governance Full concerns about ethics 102-18 Governance structure Governance Full 102-19 Delegating authority Governance Full Executive-level responsibility 102-20 for economic, environmental, Governance Full and social topics GF Board of Directors Members are Composition of the highest gover- 102-22 – disclosed at https://www.globalfoundries. Partly nance body and its committees com/about-us/leadership/board-directors

GLOBALFOUNDRIES | CORPORATE RESPONSIBILITY REPORT 2019 BACK | MENU | NEXT 55 GRI Standard Title GRI Standard Disclosure CSR Report 2019 Explanatory Comment / and Publication Year Disclosure Number Title Section Direct Information Coverage 12 Information on GF Board of Directors Members, including information on GRI CONTENT INDEX Chair of the highest (continued) 102-23 – the Chair, is disclosed at https:// Full governance body www.globalfoundries.com/about-us/ leadership/board-directors Activities, brands, 102-2 Company Profile Full products, and services 102-3 Location of headquarters Company Profile Full 102-4 Location of operations Company Profile Full 102-40 List of stakeholder groups Stakeholder Engagement Full 102-41 Collective bargaining agreements – None Full Identifying and selecting 102-42 Stakeholder Engagement Full stakeholders Approach to stakeholder 102-43 Stakeholder Engagement Full engagement GRI 102: General Disclosures 2016 102-44 Key topics and concerns raised Stakeholder Engagement Full GLOBALFOUNDRIES is a privately Entities included in the 102-45 – held company and does not Not Disclosed consolidated financial statements publish financial statements. Defining report content 102-46 Stakeholder Engagement Full and topic Boundaries 102-47 List of material topics Stakeholder Engagement Full Please see restatement for GRI 102-48 Restatements of information Sustainable Manufacturing 307-1 (Environmental Compliance) in Full Section Sustainable Manufacturing. No changes as compared to 102-49 Changes in reporting Stakeholder Engagement Full previous reporting period. 102-5 Ownership and legal form Company Profile Full 102-50 Reporting period About this Report Full 102-51 Date of most recent report About this Report Full

GLOBALFOUNDRIES | CORPORATE RESPONSIBILITY REPORT 2019 BACK | MENU | NEXT 56 GRI Standard Title GRI Standard Disclosure CSR Report 2019 Explanatory Comment / and Publication Year Disclosure Number Title Section Direct Information Coverage 12 102-52 Reporting cycle About this Report Full GRI CONTENT INDEX Contact point for questions 102-53 About this Report Full (continued) regarding the report Claims of reporting in accordance 102-54 About this Report Full with the GRI Standards 102-55 GRI content index GRI Content Index Full GRI 102: General At this time, GLOBALFOUNDRIES is not Disclosures 2016 102-56 External assurance – Full seeking external assurance for this report 102-6 Markets served Company Profile Full 102-7 Scale of the organization Company Profile Full Information on employees We report the break down by 102-8 Our People and Workplace Full and other workers category as percentage. 102-9 Supply chain Supplier Responsibility Full Management Approach Explanation of the material 103-1 Stakeholder Engagement In subsection The Materiality Analysis Full topic and its Boundary GRI 103: Management The management approach 103-2 – Covered in topic related report sections. Full Approach 2016 and its components Evaluation of the man- 103-3 – Covered in topic related report sections. Full agement approach Material Topics Economic While this is a material topic, GRI 201: Economic Direct economic value GLOBALFOUNDRIES as a 201-1 – Not disclosed Performance 2016 generated and distributed privately held company, does not disclose any financial details

GLOBALFOUNDRIES | CORPORATE RESPONSIBILITY REPORT 2019 BACK | MENU | NEXT 57 GRI Standard Title GRI Standard Disclosure CSR Report 2019 Explanatory Comment / and Publication Year Disclosure Number Title Section Direct Information Coverage 12 Governance and Ethical Business GRI CONTENT INDEX In 2018, the company’s Ethics & (continued) GRI 205: Anti- Operations assessed for Compliance team conducted an enterprise 205-1 – Full corruption 2016 risks related to corruption risk assessment. No significant risks related to corruption were identified. Communication and GRI 205: Anti- 205-2 training about anti-corruption Governance Full corruption 2016 policies and procedures Operations that have been GRI 412: Human Rights 412-1 subject to human rights reviews Governance Full Assessment 2016 or impact assessments GRI 412: Human Rights Employee training on human 412-2 Governance Full Assessment 2016 rights policies or procedures Operations and suppliers in GRI 407: Freedom of which the right to freedom Governance; Association and Collective 407-1 Full of association and collective Supplier Responsibility Bargaining 2016 bargaining may be at risk Operations and suppliers Governance; GRI 408: Child Labor 2016 408-1 at significant risk for Full Supplier Responsibility incidents of child labor Operations and suppliers at GRI 409: Forced or Governance; 409-1 significant risk for incidents of Full Compulsory Labor 2016 Supplier Responsibility forced or compulsory labor GRI 308: Supplier New suppliers that were screened Environmental 308-1 Supplier Responsibility Full using environmental criteria Assessment 2016 GRI 414: Supplier Social New suppliers that were 414-1 Supplier Responsibility Full Assessment 2016 screened using social criteria GRI 414: Supplier Social Negative social impacts in the 414-2 Supplier Responsibility Partly Assessment 2016 supply chain and actions taken Non-compliance with laws In 2018, GLOBALFOUNDRIES was GRI 419: Socioeconomic 419-1 and regulations in the social – not assessed any significant fines Full Compliance 2016 and economic area or non-monetary sanctions.

GLOBALFOUNDRIES | CORPORATE RESPONSIBILITY REPORT 2019 BACK | MENU | NEXT 58 GRI Standard Title GRI Standard Disclosure CSR Report 2019 Explanatory Comment / and Publication Year Disclosure Number Title Section Direct Information Coverage 12 Environmental GRI CONTENT INDEX Energy (continued) Energy consumption GRI 302: Energy 2016 302-1 Sustainable Manufacturing Full within the organization GRI 302: Energy 2016 302-3 Energy intensity Sustainable Manufacturing Full Overall savings achieved by energy GRI 302: Energy 2016 302-4 Reduction of energy consumption Sustainable Manufacturing conservation projects underlying to Partly 2016 - 2018 corporate goals are reported. Examples are reported for new and Reductions in energy require- existing energy-efficient technologies GRI 302: Energy 2016 302-5 Product Stewardship Partly ments of products and services that enable our customers to design energy-efficient products. Water GLOBALFOUNDRIES uses water from municipal sources at all of our manufactur- ing facilities. GRI 303: Water 2016 303-1 Water withdrawal by source Sustainable Manufacturing Full In 2018, a portion equivalent to 6 percent of GLOBALFOUNDRIES total water use was withdrawn from groundwater sources. GRI 303: Water 2016 303-3 Water recycled and reused Sustainable Manufacturing Full

GLOBALFOUNDRIES | CORPORATE RESPONSIBILITY REPORT 2019 BACK | MENU | NEXT 59 GRI Standard Title GRI Standard Disclosure CSR Report 2019 Explanatory Comment / and Publication Year Disclosure Number Title Section Direct Information Coverage 12 Climate Change, GHG Emissions GRI CONTENT INDEX GLOBALFOUNDRIES quantifies (continued) Scope 1 GHG emissions using the following methods: - “The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition)”; - For semiconductor process 305-1 Direct (Scope 1) GHG emissions Sustainable Manufacturing related PFC emissions specifically, Full GLOBALFOUNDRIES uses Tier 2 methods of IPCC Guideline for GHG Inventories V3_Chapt6 Electronics Industries and U.S. EPA reporting methods under Subpart I of the GHG GRI 305: Mandatory Reporting Rule (MRR); Emissions 2016 - GWPs used are from IPCC Fourth Assessment Report (AR4 – 100 year) GLOBALFOUNDRIES quantifies Scope 2 GHG emissions using the following methods: - “The Greenhouse Gas Protocol: A Energy indirect (Scope Corporate Accounting and Reporting 305-2 Sustainable Manufacturing Full 2) GHG emissions Standard (Revised Edition)”; - “The Greenhouse Gas Protocol: Scope 2 Guidance”; - GF is using the market-based method to quantify Scope 2 GHG emissions 305-4 GHG emissions intensity Sustainable Manufacturing Full

GLOBALFOUNDRIES | CORPORATE RESPONSIBILITY REPORT 2019 BACK | MENU | NEXT 60 GRI Standard Title GRI Standard Disclosure CSR Report 2019 Explanatory Comment / and Publication Year Disclosure Number Title Section Direct Information Coverage 12 Emissions, Waste, GRI CONTENT INDEX and Effluents (continued) Our 2018 fabs’ combined corrosive Nitrogen oxides (NOX), GRI 305: emissions were approximately 84,900 305-7 sulfur oxides (SOX), and other Sustainable Manufacturing Partly Emissions 2016 kg (this value is based on air emission significant air emissions measurements conducted at each fab). We operate permitted wastewater treatment systems at each of our manufacturing sites to manage effluent from production areas. These facilities treat the wastewater to meet regulatory requirements prior to discharge. GF facilities discharge wastewater to municipal treatment facilities, or directly Water discharge by quality 306-1 Sustainable Manufacturing to surface waters in the case of Fabs 9 Full and destination and 10. The direct discharges follow a GRI 306: Effluents rigorous combination of industrial and and Waste 2016 biological treatment processes. In total, in 2018, we discharged 23.7 million cubic meters of treated wastewater from all manufacturing operations combined, of which 31% (7.3 million cubic meters) was discharged to surface water. Waste by type and 306-2 Sustainable Manufacturing Full disposal method 306-3 Significant spills – No significant spills occurred in 2018 Full GRI: 307: Environmental Non-compliance with environ- 307-1 Sustainable Manufacturing Full Compliance 2016 mental laws and regulations

GLOBALFOUNDRIES | CORPORATE RESPONSIBILITY REPORT 2019 BACK | MENU | NEXT 61 GRI Standard Title GRI Standard Disclosure CSR Report 2019 Explanatory Comment / and Publication Year Disclosure Number Title Section Direct Information Coverage 12 Social / Employment GRI CONTENT INDEX Benefits provided to full-time (continued) GRI 401: Employment 2016 401-2 employees that are not provided to Our People and Workplace Full temporary or part-time employees Types of injury and rates of GRI 403: Occupational injury, occupational diseases, 403-2 Our People and Workplace We do not disclose by gender and region Partly Health and Safety 2016 lost days, and absenteeism, and number of work-related fatalities Average hours of training We do not disclose by gender 404-1 Our People and Workplace Partly per year per employee and employee category GRI 404: Training and Education 2016 Programs for upgrading 404-2 employee skills and transition Our People and Workplace Full assistance programs GRI 405: Diversity and Diversity of governance 405-1 Our People and Workplace Full Equal Opportunity 2016 bodies and employees Community GRI 203: Indirect Significant indirect 203-2 Site Profiles Full Economic Impacts 2016 economic impacts Operations with local GRI 413: Local community engagement, Community Engagement; 413-1 Full Communities 2016 impact assessments, and Site Profiles development programs

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