GlobalFoundries Inc.

Thank you for standing by and welcome to the Global Foundries, Inc.' 's fourth quarter of fiscal year 2025 financial results. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the 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. We ask that you please limit yourself to one question and one follow-up. As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Eric Chow, Investor Relations.

Thank you, Operator. Good morning, everyone, and welcome to Global Foundry's fourth quarter and full year 2025 earnings call. On the call with me today are Tim Breen, CEO, Niels Anderskov, President and Chief Operating Officer, and Sam Franklin, CFO. A short while ago, we released GF's fourth quarter and full year 2025 financial results, which are available on our website at investors.gf.com, along with today's accompanying slide presentation. This call is being recorded and 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 unaudited 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 issued 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 furnished with the SEC. In terms of upcoming events, we will be participating in fireside chats at the Morgan Stanley Technology, Media, and Telecom Conference in San Francisco on March 4th, and the Cantor Global Technology and Industrial Growth Conference in New York City on March 11th. In addition, we're looking forward to hosting a publicly webcast investor webinar at 4.30 p.m. Eastern Time on March 10th. At this event, we will provide a business, technical, and strategy update on how GF is at the forefront of the silicon photonics and advanced packaging revolution. We will begin today's call with Tim providing a summary update on the current business environment, technologies, and end markets, followed by Sam, who will provide details on our fourth quarter and full year results, and also provide first quarter 2026 guidance. We will then open the call for questions with Tim, Niels, and Sam. 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, Eric, and welcome everyone to our fourth quarter and full year 2025 earnings call. I am pleased to announce that GF delivered strong results in the fourth quarter, with revenue, gross margin, and EPS at or above the high end of the guidance ranges. For the fifth consecutive quarter, the communications, infrastructure, and data center end market demonstrated double-digit percentage year-over-year growth, driven by strong momentum in areas such as SATCOM and optical networking. As a result of the team's consistent execution, disciplined cost management, and relentless focus on profitability, we grew gross margin by nearly 400 basis points year over year in the fourth quarter. These achievements show that with our unique differentiated portfolio aligned to key long-term secular trends, GF is well positioned to seize emerging opportunities and deliver durable, profitable growth. We made significant progress towards our strategic objectives in 2025, focusing on the three core pillars of our customer value proposition, namely technology differentiation, deep customer and ecosystem partnerships, and leveraging our uniquely diversified geographical footprint. Let me summarize some of our key business milestones and highlights in the year. In 2025, GF made extraordinary strides, strengthening our technology differentiation across multiple vectors. In the exciting growth area of Silicon Photonics, We acquired AMF and InfiniLink, which together bring valuable state-of-the-art IP and synergetic customer bases. We expect both of these acquisitions to accelerate our technology roadmap, broaden our portfolio of optical networking solutions, and drive greater customer value. As evidenced by our recently announced collaboration with Corning for detachable fiber attach, we are building a unique and differentiated ecosystem of partners for silicon photonics. In the burgeoning realm of physical AI, our acquisition of MIPS enables GF to become a diversified and holistic technology solutions provider with an expansive portfolio of offerings and a larger than ever serviceable addressable market. Lastly, we accelerated our gallium nitride technology roadmap with a licensing agreement signed with TSMC. The addition of this proven GaN technology will accelerate the development of our next generation GaN platform and enable us to deliver even more differentiated power solutions for high growth areas such as the data center from our US footprint. The second key strategic pillar where GF made significant strides was to deepen customer partnerships and accelerate design win momentum. In 2025, we secured over 500 design wins. a company record and a leading indicator of future production revenue. These wins were across the broadest set of applications and widest range of customers in our history. With over 95% of these design wins secured on a sole source basis to GF, it is a testament to the significant value offered by our differentiated technology and global footprint. 2025 saw us broaden our customer base and engage with nearly all of the leading industry players across the major end markets. As highlighted in our physical AI investor webinar in December, this includes active engagements with all four US hyperscalers, all five top automotive OEMs, all six mobile fabless and OEMs, and seven of the top eight industrial IDMs. Of our many significant customer announcements in 2025, I would like to highlight three specific areas. We meaningfully expanded our longstanding partnership with Apple to build and deliver wireless connectivity and power management chips in our US-based fabs. We deepened our collaboration with Cirrus Logic to advance the development and commercialization of next-generation BCD and GaN power technologies in the US. And most recently, our collaborations with Navitas and OnSemi are set to accelerate the development and scaling of 650-volt and 100-volt GaN technology for AI data centers and other critical power applications. And finally, in 2025, we advanced our third key strategic pillar, leveraging our diversified geographical footprint. In June 2025, we increased our commitment to invest $16 billion in the U.S., with plans to expand manufacturing and advance packaging capabilities in our New York and Vermont facilities. Furthermore, we announced plans to invest 1.1 billion euros to expand our Dresden facility, increasing the fab's wafer production capacity to over 1 million wafers per year by the end of 2028 and making it the largest of its kind in Europe. We also made significant progress in making our technologies available on all continents, creating valuable optionality for all of our customers. In summary, we are very pleased with the progress made towards our strategic objectives in 2025, which sets the foundation for us to capture opportunities in 2026 and beyond. For GF, we expect these opportunities to be driven by the three most significant megatrends defining our industry today. The rapid scaling of AI data centers, the proliferation of AI into the physical world, and the critical need for resilient, diversified global semiconductor supply. The rapid expansion of compute for AI data centers is reshaping demands on infrastructure and creating two critical bottlenecks, networking and power. Addressing these bottlenecks will be paramount for the continued scaling of AI, and these requirements are driving rapid shifts in semiconductor demand. With years of focused R&D and capacity investments, As well as close collaboration with leading customers, GF is at the center of this transformation and is well positioned to capitalize on both key opportunities. In data center power, we've already seen encouraging momentum in the fourth quarter with two first of their kind design wins secured on our GAN and BCD platforms. We expect to start volume production this year, and we believe the data center power opportunity is still in its very early stages. As we continue to leverage our winning technology to develop, ramp, and scale in data center power, we look forward to securing additional customer partnerships in this exciting growth area for GF. Meanwhile, optical networking has clearly emerged as a strong acceleration opportunity for our business at GF. We delivered on our objective to roughly double our silicon photonics revenue within our communication infrastructure and data center end market to over $200 million in 2025. Even on this higher base, we expect to nearly double the contribution from Silicon Photonics again in 2026, driven by strong customer demand for our differentiated technology, a robust ramp in supply capacity, and the integration of our recent acquisition of Advanced Microfoundry. Closed in November last year, the addition of AMF will accelerate our Silicon Photonics roadmap, broaden our customer base, and drive opportunities for scale and geographic synergies in Singapore. This highly complimentary acquisition is expected to deliver consistent accretive growth to our corporate gross margin targets in 2026. As we continue to ramp opportunities for silicon photonics across pluggable applications, and we begin to scale opportunities in the field of co-packaged optics, we now believe that we are on a path to reach a $1 billion run rate revenue level for silicon photonics by the end of 2028, a substantial acceleration from our prior objective. Moving on to the second major megatrend, physical AI. The emerging technical requirements of physical AI map directly to GF's core strengths, building highly integrated, low power, secure, and cost efficient connected ICs. The addition of MIPS last August is enabling an acceleration of our physical AI capabilities combining our world-class manufacturing capabilities and customer relationships with a full suite of RISC-V processor IP, subsystems, and software. Along with the recently signed acquisition of Synopsys processor IP solutions business and its team of highly skilled engineers, we expect yet another paradigm shift forward. Integrating Synopsys Arc technology portfolio of high-performance, ultra-low-power compute and AI cores positions us to deliver processing solutions across a broad spectrum of physical AI applications, from software-defined vehicles to medical devices, defense applications, industrial robotics, and beyond. The Arc Processor IP portfolio is a highly complementary addition to our MIPS RISC-V IP portfolio. Together, we expect to be at the forefront of supporting our customers in powering next-generation edge processing workloads, multimodal sensors, real-time control and actuation, all enabling distributed intelligence and action within physical AI devices. The Synopsys Arc acquisition is expected to significantly accelerate our physical AI roadmap given Arc's proven leadership in AI-focused IP and software, along with the infusion of its world-class engineering talent. By adding the Arc portfolio to MIPS, We expect GF to become a full-spectrum RISC-V processor IP provider serving a global base of over 300 active customers, now equipped with an expanded range of solutions, including ARC's ultra-low-power neural processor cores and its widely used ASIP designer and MetaWare software toolchain as part of our offering. The final megatrend defining our industry is the critical importance of geographically diversified semiconductor supply in a fragmented, deglobalizing world Geopolitical tensions, tariffs, and export controls are actively driving firms to reshore or onshore their semiconductor supply. Companies now routinely mandate non-China, non-Taiwan sourcing, while others have publicly announced the U.S. as central to their long-term supply chain strategy. GF is ready to meet these requirements in a way no other company can. GS flexible and scaled footprint spans the US, Europe, and Asia, making us uniquely suited to satisfy customer requirements and capture meaningful share from this secular shift. Strong customer engagements are turning into meaningful new design wins, tape outs, and preparations for high volume ramps. Over the course of 2025, new design wins that were specifically driven by a manufacturing footprint were worth well over $3 billion of combined expected lifetime revenue. As more and more customers choose us for our three-continent footprint, we expect to build on this momentum in 2026 and beyond. Accelerated revenue growth and profitability tailwinds to GF are only starting to take shape, but we are setting the foundation with customer partnerships today. We expect to fully leverage our unique geographic advantage, placing us at the forefront of semiconductor onshoring in the years to come. Let me now discuss our recent design wins, customer engagements, and business highlights across each of our end markets. In automotive, we made significant progress in 2025 in growing our content in the car beyond our traditional leadership in automotive MCUs. For example, automotive smart sensors and networking revenue more than tripled in 2025 compared to 2024, driven by robust ramps in radar, cameras, and other sensors critical for next-generation ADAS. In 2025, we secured over 50% more design wins in automotive compared to the year prior, which builds on years of increasing design win momentum. Automotive design wins typically take several years to fully ramp, yet we have outperformed the automotive semis market every year in our existence as a public company. In smart mobile devices, we continue our focus on the most differentiated applications for high-end handsets. we secured several new design wins in the fourth quarter across camera controllers, RF front end, and power management, including a few notable highlights. We secured a design win on our 22UX platform targeting next-gen imaging in mobile phones and action cameras worth an estimated lifetime revenue of over $500 million. With best-in-class analog performance, low noise optimization, and compelling cost competitiveness, we expect further UX wins in areas such as IoT, automotive, and industrial. We want a camera controller program for premium-tier Android with Cambridge Mechatronics on our FinFET platform, an opportunity for meaningful share gain in a relatively new area for GF. Thanks to its superior RF noise performance, Our newly launched CBIC platform was selected by Broadcom for a low-noise amplifier, the second major customer to adopt this technology. In home and industrial IoT, we deepened our long-term collaboration with a leading MCU supplier with a fourth-quarter design win for its next-gen AI-enabled MCUs used in a variety of physical AI applications. We are also seeing notable opportunities for connectivity solutions on our FinFET platform, including SOCs for next generation Wi-Fi 8 and other IoT applications, such as point of sale retail. In aerospace and defense, we secured new design wins across secure connectivity and RF applications that will begin ramping in our Malta, New York fab. As physical AI proliferates in the coming years and manifests across many different new applications and form factors, we expect our home and industrial IoT business to be a key beneficiary. In 2026, we expect a stronger second half of this end market compared to the first half, driven by the ramp of new products in areas such as AI-enabled MCUs, Wi-Fi connectivity, and power management. In communications, infrastructure, and data center, we secured an important co-packaged optics design win for scale-up networks on our CLO silicon photonics platform. These photonic IC design wins at both endpoints of the scale-up network mark an important step in the industry's rollout of CPO. As AI clusters grow, the capabilities of our silicon photonics portfolio position GF at the center of the shift towards higher bandwidth, lower latency interconnects that underpin scale-up AI networking. Beyond silicon photonics, our leading portfolio of high-performance SIGI used in applications such as TIAs and driver ICs serve critical needs across optical networking. GF is not just participating in these critical optical networking opportunities. Our products and innovation are actively driving it forward. In satellite communications, we continue to expand our leadership by winning additional content on the satellite, enabling direct-to-cellular phone services, GF technology enables ubiquitous global connectivity by eliminating traditional mobile dead zones through satellite-to-mobile technology. Our most recent design win in the fourth quarter further broadens our content across the full SATCOM ecosystem, from terminals on the ground to satellites in orbit. For all of these reasons, we are enthusiastic about further growth and acceleration in our communications infrastructure and data center end market, where we expect to outperform peers and achieve over 30% year-on-year revenue growth in 2026. In conclusion, GF is at an exciting inflection point. Our acquisitions are expanding GF's capabilities as a holistic technology solutions provider, and our differentiated technology and footprint are proving an excellent fit in the confluence of major AI and onshoring megatrends. In addition, I'm encouraged by our record design win momentum, breadth of customer engagements, and clear path towards a richer mix of business. I have never been more optimistic about our long-term potential than I am now. I'll now pass the call over to Sam for a deeper dive on fourth quarter and full year 2025 financials.