GlobalFoundries Inc. Ordinary Shares Goldman Sachs Communacopia + Technology Conference 2026

Great to be here. Thank you.

Yeah. Thanks, Jim. Great to be here. Look, we see that in three broad categories. I think the first thing is that there was once upon a time when in semiconductors, there was leading edge and lagging edge, and that was really defined by the technology transitions that the industry went through. I think it is obvious today that we have moved beyond that paradigm. We have moved beyond it because where semiconductors find themselves in our daily lives, in the data centers that we are relying on, in space, a broad set of use cases. It means that when you think about what we do, you have to focus your strategy against that. We think of these three pillars that we focus on. Number one is our technology portfolio.

We have an incredibly rich, diverse technology portfolio built over now 17 years since we've been a company called GLOBALFOUNDRIES, in areas as diverse as analog and mixed-signal, in power, in ultra-low power CMOS, and beyond. Step number one, have for those diverse applications, a set of technologies at the process level, and increasingly now beyond that process level with advanced packaging, with IP, with software, with custom silicon as well. Pillar number one, a deep focus on those differentiated technologies that accomplish specific workloads. Number two, ultimately, you are a really high-stakes decision for your customers. They do not get to choose you this year and not choose you next year. They bet on you for the long term. You need a track record of trust and delivery, and that takes time to build. We've been doing this for some time now.

I am really confident to say now we are in a place where 10 or more customers have done a decade with us and made millions of wafers and hence billions of chips with us. We have that foundation of trust with our customer base and with our ecosystem. The last part you mentioned, it is in the name, is that global footprint. It is really hard to build. It takes a lot of time. It is actually quite painful to establish not just a set of fabs in different geographies, but ones that work together as one global network that have cross-qualified technology, so a customer can tape out once and manufacture in three continents. That is a huge advantage in a world where supply chains are more fragile than ever and need more resilience than they have ever had before.

Again, when you put those three together, it is clear why customers are coming to us more and more for what we do.

Yeah. When we start in the data center, I think obviously it's the area that everyone in the industry, everyone in technology is very focused on. If you leave aside for a second just the sheer scale of the build-out that's happening, we talk about the $800 billion of hyperscaler CapEx this year, those numbers growing into 2027 and beyond. But leave aside the scale of it and talk about what's happening within that data center today that was different from two years ago or different than even a year ago. It's that data center is increasingly heterogeneous in terms of the compute that's going into that.

While before it was a GPU-centric kind of build-out, now you're talking about GPUs, CPUs, LPUs, NPUs, basically anything with a PU after it, working together in a much more complex compute environment because the AI workloads have changed. They were originally quite narrow in scope, now heavily skewed from training now to inference, and even disaggregated inference workloads as well. So that introduces a new challenge called how do you connect all of that together? In that data center, we very much focus on the optical connectivity piece of it. We'll talk more about that. I'm sure there's a lot of growth in that sector as we transition from copper to optical. But beyond that, in the data center, you're also seeing an increasing criticality of improving power conversion and power efficiency.

Again, data center power being a very good growth driver for a business like ours that specializes in the technologies for intelligent switching, dense power conversion, and so on. Data center, very, very strong driver today where we're seeing very, very good demand growth, where we're also investing CapEx for capacity for the short-term ramps. We think that is probably dwarfed by what the longer-term physical AI transition will be. It's a bit like every transition we've seen in technology. You start with a boom and everyone focuses on the boom, but we forget that there's always an echo that comes later. The reason we think that's the case is that when AI permeates the devices in our world around us, there are so many more use cases that can be deployed that we haven't thought of yet, or we haven't taken full advantage of yet.

We haven't seen that really materially hit the business yet, but of course, we see increasing interest in robotics, but also industrial automation, medical devices, agriculture, consumer devices, a broad spectrum of devices, all of which will need a lot more semiconductor content because operating in the real world, they will need to sense their environment, think with distributed compute, control a real-time system, actuation, motor control, and so on. They will need a ton of communication, largely wireless communication. The second driver, physical AI, very much at the beginning and the early stage, but we think that is a material business growth driver for us. If those two were all that was happening, that would already be pretty overwhelming for us and overwhelming for the industry, but they're also happening at this time where this reshoring trend is now truly accelerating.

For a long time, it was interesting to customers that we had a global footprint, but it was not a competitive differentiator. It wasn't something that said, "Okay, we need to do this with you because of the footprint you have." In the last couple of years, that has dramatically changed to the point that now we see procurement processes where NCNT is the rule, not a nice-to-have. Made in the U.S. is a critical feature of that. It's almost a multiplier effect on the first two, that all of this demand growth is happening at a time when the industry is, in a very committed way, driving that reshoring of capacity into the U.S., but also into other parts of the footprint as well.