GlobalFoundries Inc.

Thank you for standing by and welcome to the Global Boundaries Conference call to review Second Quarter of Fiscal 2025 Financial Results. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during today's session, you'll need to press star 1-1 on your telephone. If your question has been answered and you'd like to remove yourself from the queue, simply press star 1-1 again. As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Sam Franklin, Vice President Business, Finance, and Investor Relations. Please go ahead, sir.

Thank you, operator. Good morning, everyone, and welcome to Global Boundaries Second Quarter 2025 Earnings call. On the call with me today are Tim Breen, CEO, Neil Zanderskopf, President and Chief Operating Officer, and John Hollister, CFO. A short while ago, we released GF's Second Quarter Financial Results, which are available on our website at .gf.com along with today's accompanying slide presentation. This call is being recorded and a replay will be made available on our Investor Relations webpage. During this call, we will present both IFRS and non-IFRS financial measures. The most directly comparable IFRS measures and reconciliations for non-IFRS measures are available in today's press release and accompanying slides. Please note that these financial results are unordered and subject to change. Certain statements on today's call may be deemed to be forward-looking statements. Such statements can be identified by terms such as believe, expect, intend, anticipate, and may, or by the use of the future tense. You should not place undue reliance on forward-looking statements. Actual results may differ materially from these forward-looking statements, and we do not undertake any obligation to update any forward-looking statements we make today. For more information about factors that may cause actual results to differ materially from forward-looking statements, please refer to the press release we issue today, as well as risks and uncertainties described in our SEC filings, including in sections under the caption risk factors in our annual report on Form 20F and in any current reports on Form 6K filed with the SEC. In terms of upcoming events, please note that we will be participating in fireside chats at the KeyBank Capital Markets Technology Leadership Forum in Deer Valley on August 11th, the Deutsche Bank Technology Conference in Dana Point on August 27th, and at the Goldman Sachs Communicopia and Technology Conference in San Francisco on September 8th. We will begin today's call with Tim providing a summary update on the current business environment and technologies. Niels will then discuss our recent design wins, highlights, and traction across the markets, following which John will provide details on our second quarter results and third quarter 2025 guidance. We will then open the call for questions with Tim, Niels, and John. We request that you please limit your questions to one with one follow-up. I'll now turn the call over to Tim.

Thank you, Sam, and welcome everyone to our second quarter 2025 earnings call. I'm pleased to announce that GS delivered strong financial results in the second quarter that exceeded the guidance midpoints for revenue, gross margin, and operating margin. Earnings per share exceeded the high end of our guidance range, and these results reflect our continued focus on driving profitability through the cycle. We also made notable progress on other key financial metrics in the quarter, generating $277 million of adjusted free cash flow. Having recently implemented several capacity expansions in capital-efficient manners, GS is poised to capture growth opportunities across our footprint as demand accelerates in critical end markets while continuing to deliver robust adjusted free cash flow. Thanks to the team's excellent execution, we remain on track to generate over $1 billion of adjusted free cash flow in 2025. In the second quarter, we continue to demonstrate excellent progress in high-growth markets where both the edge and cloud AI transitions are driving the need for secure, high-performance GS technologies. Both our automotive and communications infrastructure and data center end markets demonstrated double-digit percentage -over-year revenue growth for the third consecutive quarter. As the demand for our differentiated product portfolio aligns with the increasing requirements for high-performance chip solutions in these growth markets, GS is delivering strong design and momentum with existing and new customers. For our automotive and communications infrastructure and data center end markets in 2025, we expect -over-year growth in the mid-teens and high-teens percentage ranges respectively. Meanwhile, the smart mobile devices and home and industrial IoT end markets have continued to experience a slower recovery, as uncertainties brought about by the broader geopolitical environment and global trade tensions have impacted consumer demand and inventory dynamics in these two end markets. To that end, we have been partnering closely with certain customers to support their inventory management and preserve GS market share, predominantly where we are a dual-sourced foundry supplier. In our smart mobile devices end market, achieving these objectives has involved some one-time adjustments to the average selling price per wafer, or ASP. For one particular customer, we partnered to replace the fixed wafer volume component of their long-term agreement with a shift to a long-term 50% share of wallet, which is expected to result in meaningfully higher wafer revenues over the remaining life of the contract. These type of adjustments for specific customers are leading to improved utilization levels across our footprint in the second half of 2025, but will result in -over-year ASP in the second half of the year for this end market, and to a lesser degree for GF overall. We continue to observe a constructive pricing environment across automotive and communications infrastructure and data center as the demand for silicon content continues to grow in these end markets, and GF solutions and footprint bring unique differentiation. Notwithstanding these market dynamics, GF remains the diversified and differentiated foundry of choice for a growing number of our customers. With our broad product portfolio and our focus on critical performance, connectivity, and power capabilities, GF is gaining share and winning key designs across a range of applications and end markets. I would like to provide some important business highlights from the second quarter. We secured design wins for applications across automotive processing, data center power delivery, and connected home automation on GF's 22FDX MRAM, 55BCD Lite, and 12LP Plus platforms, respectively. Niels will cover these in more detail. Moving briefly to the macroeconomic landscape. Like others in our industry, we believe that some customers took on additional inventory in the second quarter, particularly in consumer-facing markets, in anticipation of increased tariff-related impacts, which will impact demand in the second half of the year as these inventories normalize. More strategically, it is increasingly clear that the changes and uncertainties brought about by global trade negotiations and tariffs underscore the importance of being a geographically diversified foundry partner to our customers, which GF is uniquely positioned to provide with our footprint across the U.S., Europe, and Asia. Diverse, dependable supply of semiconductors is not a luxury, but a necessity for national and economic security. For over a decade, GF has made investments to build and scale flexible manufacturing capacity across our sites. Our diversification strategy is gaining traction with more and more customers who have recognized the value of partnership with GF, resilience, flexibility, and dependability. In the U.S., we fulfilled our first CHIPS milestone in diversifying our Fab8 facility with our CHIPS 8.0 project. Our 22-FDX technology is on track with qualification, bringing supply chain resiliency and security onshore. This is intended to provide our customers with critical supply as anticipated tariffs on semiconductor imports take effect. In Europe, we intend to convert our former Bob Test facility to expand our wafer fabrication capacity and are working to get EU CHIPS approval to support the investment, which would deliver even more efficient scale in Germany and support our European customers like Continental and Bosch with domestic supply. We are enhancing our global reach with our China for China strategy, particularly targeted at the growing automotive sector. I am pleased to announce that we have entered into a definitive agreement with a China-based foundry that will enable our customers to access GF production, performance, and quality to serve their domestic Chinese demand. Initially, this agreement will apply to our automotive-grade feature-rich CMOS technologies, and based on early dialogue with our customers, we expect that this will extend to our automotive-grade BCD technologies. This is a unique opportunity for GF to expand our multi-fab customer offering on our successful automotive-grade platforms, while maintaining control over both the IP and quality standards that our customers require. We believe an increasingly decentralized world is a net opportunity for GF, and the strength of our opportunity funnel and design-win momentum is a compelling validation of our long-term growth strategy. Furthering our efforts to support our customers where and how they need us, and to align our business with the secular growth trend accelerated by the deployment of AI, last month we announced a definitive agreement to acquire MIPS, a leading supplier of AI and processor IP. Expected to close later this year, MIPS will be an exciting addition to the GF suite of offerings that will add more value to our customers in completely new ways. MIPS brings a highly complementary IP portfolio and decades of design and IP innovation that will be accelerated when combined with GF's world-class manufacturing and global ecosystem. As a leader in RISC-V capabilities, MIPS enables efficient processor cores that are tailored to edge AI applications, and ideal for the high-performance edge solutions that GF is well positioned to serve. This acquisition is a win for GF and a win for our customers, who will be able to more closely collaborate with GF earlier in the design cycle, with more direct access to process IP and with greater potential for customization. Early customer feedback on the acquisition has been very favorable, as our customers look to an increasingly differentiated GF as their partner in edge AI applications. In conclusion, I want to thank our 13,000 strong employees around the world for their focus on technology differentiation, manufacturing excellence, and driving the momentum with our customers, as we continue to execute to our long-term strategy and lay the foundations for a strong future. With that, over to you, Niels.