CORPORATE RESPONSIBILITY REPORT - GlobalFoundries

CO R P O R AT E

R E S P O N S I B I L I T Y

R E P O R T

2 0 1 6

1G LO B A L F O U N D R I E S CO R P O R AT E R E S P O N S I B I L I T Y R E P O R T 2 0 1 6

COMPANY PROFILE 2

CEO STATEMENT 6

GOVERNANCE 7

STAKEHOLDER ENGAGEMENT 10

MaterialityAnalysis 13

SUPPLIER RESPONSIBILITY 14

ConflictMinerals—AchievingaDRCConflict-FreeSupplyChain 15

OUR PEOPLE AND WORKPLACE 16

Compensation&Benefits 18

HumanRights 18

EmployeeEducation&Training 18

Health&Safety 18

SafetyintheWorkplace 20

ManagingChemicalsSafely 20

PromotingHealth&Well-Being 20

COMMUNITY ENGAGEMENT 21

EducationOutreach 22

Philanthropy 23

SUSTAINABLE MANUFACTURING AND OPERATIONS 24

LeadershipinAdvancedManufacturing 25

QualityManagementSystems 26

EnvironmentalManagementSystems 26

Eco-EfficiencyinFoundryOperations 27

ReviewofPerformancetoDate 27

PRODUCT STEWARDSHIP 34

EnablingEnergyEfficiency 35

IntegratingEHSwithResearch&Development 37

ABOUT THIS REPORT 38

GRI CONTENT INDEX 39

TABLE OF CONTENTS


COMPANY PROFILE01

WeareGLOBALFOUNDRIES,aleadingfull-service

semiconductordesign,development,fabrication,

andinnovationcompanywithlocationsacross

theglobe.Weareproudtobetheworld’sfirst

full-servicesemiconductorfoundrywithatruly

globalmanufacturingandtechnologyfootprintand

anintegralcommitmenttocorporateresponsibility.

Weworkwithsomeoftheworld’smost

inspiredcompaniestodevelopandproduce

thesemiconductorsthatarechangingtheway

peoplelivetoday—anddefiningwhatispossible

fortomorrow.

Whileexecutionexcellenceremainsourfirst

priority,ourexpertiseextendsbeyondmanufacturing.

Wearethecatalystforgrowthintheindustrieswe

serve.Withthelargestpopulationofleading-edge

scientistsandtechnologistsinthesemiconductor

manufacturingindustry,wefocusonthetechnologies

andsystemsthattransformmarkets.Andweare

dedicatedtobeingthepreeminentpartnerforour

customers—helpingtoidentifynewopportunities

tobringthetechnologiesofthefuturetolife.

GLOBALFOUNDRIEScombinesmanufacturing

expertise,innovativetechnologies,and

comprehensiveindustryinsighttohelpposition

ourcustomersasleadersintheirmarkets.Our

customers’success,thefutureofourmarkets,

andthetechnologythatwillmovetheworld

forwardstarthere.Andwetakeseriouslyour

roleasstewardsofcorporateresponsibilityin

ourcustomers’supplychains.

GLOBALFOUNDRIESwaslaunchedinMarch

2009throughapartnershipbetweenAdvanced

MicroDevices,Inc.(AMD)andtheAdvanced

TechnologyInvestmentCompany(ATIC),now

MubadalaTechnology.Wehavecontinually

pursuedcapacityandtechnologydevelopment,

breakinggroundonourleading-edgeFab8in

NewYorkin2009,andperformingexpansionand

technologyupgradestoFab1inDresden.With

theintegrationofCharteredSemiconductorin

January2010andIBM’sMicroelectronicsDivision

in2015,wehaveboldlypursuedopportunities

tostrengthenourtechnologyportfolio,

manufacturingcapacity,anddiversity.IntheIBM

acquisition,GLOBALFOUNDRIESdiversifiedits

technologyofferingswithdifferentiatedASIC

andRFcapabilitiesthatwerestrengthsofIBM’s

MicroelectronicsDivision.Wecontinueto

investinthoseassetsandtechnology.

GLOBALFOUNDRIESmanufactureswafers

inDresden,Germany;MaltaandEastFishkill,

NewYork;Burlington,Vermont;andSingapore.

Thesefabsiteoperationsaretheculminationof

ourbusinessfocusonmanufacturingexcellence,

andtheirsuccessrequiresagloballyintegrated

supportsystem.

GLOBALFOUNDRIES’corporateofficesarein

SantaClara,California(SiliconValley)witha

globalnetworkofR&D,designenablement,and

customersupportoperationsinSingapore,China,

Korea,Taiwan,Japan,theUnitedStates,Germany,

Switzerland,France,India,andtheNetherlands.

Ourtargetmarketsincludeintegratedcircuits

designedforhigh-performanceandmobile

computing,communications,automotive,

InternetofThings(IoT),industrial,government,

andaerospaceanddefense(A&D)applications.

GLOBALFOUNDRIESisownedbyMubadala

Technology,aspecialistinvestmentcompany

focusedprimarilyontheglobaladvanced

technologysector.MubadalaTechnologyisa

whollyownedsubsidiaryofMubadalaDevelopment

Company,whichisownedbytheGovernment

ofAbuDhabi.

Withourunprecedentedpaceofgrowthandglobal

diversity,weareleadingtheindustryforward.As

promisedin2009,“Ourglobalculturewillcontinue

todevelop,alwaysgroundedinafirmcommitment

toresponsiblebusinesspractices.”


01 VISION, MISSION, AND VALUES

Webelievecollaboration

drivesinnovation,growth,

andsharedsuccess.Westrive

tofosterandmaintainopen,

cooperativerelationships

witheachotherthatdrivethe

sharedgoalsofprofitability

andexcellence.

Weareproblemsolvers

thatdeliverrealsolutions.

Wewelcomechallenges

andseeopportunitieswhere

othersseeonlyobstacles

andrisks.Wedowhatwe

saywe’regoingtodo,and

workrelentlesslytomeet

ourcommitments.

Weholdourselvestothe

higheststandardsoffairness,

honesty,andtransparency

ineverythingwedo.Our

relationshipswitheachother

arebasedontrustandmutual

respect.Asacompany,we

believeintheimportanceof

doingtherightthing.

Weareambitious,and

westriveforsuccessfor

ourselvesandourcustomers.

Wearepassionateabout

whatwedoandcommitted

tocontinuouslyimproving

howwedoit.Wewillbethe

bestsemiconductorcompany

intheworld.

OUR VISIONistoreshapethesemiconductorindustrythroughcollaborationandinnovation.

OUR MISSIONistobringglobalresourcestogethertounleashourcustomers’potentialtoinnovateandcreateamazingnewthingswithus.

OUR VALUES:

CREATE

TOGETHER

ACT WITH

INTEGRITY

DELIVER

SOLUTIONS

WILL

TO WIN


Seoul

Beijing

01 COMPANY LOCATIONSManufacturing &

Technology CentersHeadquarters

Design, Sales &

Administrative Offices

Rochester,MN

EastFishkill,NY

Munich

Amsterdam

Shanghai

Kyoto

Bangalore

Yokohama

DresdenEvry

GenevaMalta,NY

Boston,MA

Raleigh,NC

Austin,TX

Dallas,TX

SanDiego,CA

SantaClara,CA

Hsinchu

Kista

Singapore

Burlington,VT

5G LO B A L F O U N D R I E S CO R P O R AT E R E S P O N S I B I L I T Y R E P O R T 2 0 1 6 5

GLOBALFOUNDRIESisformedasajoint

venturebetweenAdvancedTechnology

InvestmentCompany(ATIC)andAdvanced

MicroDevices,Inc.(AMD)inwhichAMD

contributestheirDresden,Germany,wafer

fabandR&Dcapabilities.

GLOBALFOUNDRIES

acquiresSingapore-based

CharteredSemiconductor.

Toaddressshifting

marketneedsand

recognizingthatone

technologydoesnotfit

all,GLOBALFOUNDRIES

announcedtheindustry’s

onlydualtechnology

roadmap:FinFETsfor

performanceanddensity

atanycost;FDXfor

low-power,cost-effective

performance.

GLOBALFOUNDRIES

repurchasesAMD’sremaining

stakeinthejointventure,thus

becomingwhollyownedbyATIC.

GLOBALFOUNDRIESacquiresIBM’s

MicroelectronicsDivision,adding

5,000employees;IBM’sRFand

ASICproductlines;a200mmfab

inBurlington,Vermont;a300mm

fabinEastFishkill,NY;andan

extensiveportfolioofsemiconductor

technologypatents.

ATICbecomesMubadala

Technology,withinMubadala

DevelopmentCompany’s

Technology&Industry

businessunit.

GLOBALFOUNDRIESandSamsung

announcepartnershipbringing

leading-edge14nmtechnology

toFab8.

GLOBALFOUNDRIESbreaks

groundforconstructionof

ourneweststate-of-the-art

300mmwafermanufacturing

facilityinMalta,NewYork.

2009–2016

G LO B A L F O U N D R I E S CO R P O R AT E R E S P O N S I B I L I T Y R E P O R T

20142009 2010 2016

20152009 2012

01 GLOBALFOUNDRIES MILESTONES


Iamproudtoleadanorganizationthatworkswith

someoftheworld’smostinspiredcompaniesto

developandproducethesemiconductorsthatare

changingthewaypeoplelivetoday—anddefining

what’spossiblefortomorrow.Wearecommitted

to“ActwithIntegrity”andholdourselvesto

thehigheststandardsoffairness,honesty,and

transparencyineverythingwedo.Thiscommitment

tocorporateresponsibilityhasbeenintegralto

ourcompanyfromthebeginning.

SincewefirststartedreportingonourCSR

activitiesin2009,wecontinuetofocusourefforts

toensurethatweoperatearoundtheglobeinan

ethicalandsustainablemanner.Thisappliesacross

allouroperationsandinteractionswithcustomers,

suppliers,employees,andthecommunitieswhere

wearelocated.

In2015,ourjourneyincludedtheacquisitionof

IBM’sMicroelectronicsbusiness.Weexpanded

ourworkforcebymorethan5,000ofsomeofthe

mostinnovativetechnologistsandscientistsinthe

semiconductorindustryinmorethan12locations,

includingtwomanufacturingfacilitiesinEast

Fishkill,NewYork,andBurlington,Vermont,

andaddedsignificantintellectualcapacityin

IndiaandChina.

Wearenowinatimewhentheneedforchip

innovationisgreaterthanever.Traditionaldrivers

arechangingastheindustrytransitionsfrom

theeraofmobilecomputingtothenexteraof

“intelligentcomputing”.Weproudlyacceptthe

responsibilitiesthatcomewiththerolewehave

earnedasgloballeadersinsemiconductorR&D

andhigh-volumemanufacturing,uponwhichmany

customersrely.

Wearepleasedtoprovideour2016Corporate

ResponsibilityReporttoourstakeholders.Key

achievementssinceourlastCSRreportinclude:

Emphasisonourhighethicalstandardsbyupdating

ourWorldwideStandards:GLOBALFOUNDRIES

CodeofConduct,andestablishmentofourEthics

andComplianceofficein2015;

Achievementof100percentDRC“Conflict-Free”

statuswithallsmeltersinGLOBALFOUNDRIES’

supplychaincompliantwiththeConflict-FreeSmelter

Initiative(CFSI)’sConflict-FreeSmelterProgram;

Publicationofanewsetofresourceconservation

goalsreflectingourintegratedmanufacturing

operations,unifyingthecompanyinpursuitof

sustainability,evenaswegrowrapidly;

MembershipintheElectronicIndustryCitizenship

Coalition®(EICC),alongwithextended

commitmenttotheEICCCodeofConductandour

customers’corporateresponsibilityefforts.

Whileweareproudofourprogress,madepossible

bythededicationofour18,000employees

aroundtheglobe,werecognizethatthepathto

sustainablebusinesspracticesisnever-ending.Our

forward-lookingCorporateResponsibilitystrategy

focusesonexpandingoursupplierandcustomer

collaborationwhilewecontinuetohonorand

integratethetremendousculturaldiversitywe

havewithinourcompany.Wewillalsocontinue

todriveimprovementinresourceconservation.

Welookforwardtoworkingwithourcustomers,

communities,andsupplierstomeetourshared

goalsofaprosperousindustrythatisalsoaleader

inresponsiblebusinesspractices.

02

CEO STATEMENT

SANJAY JHACHIEFEXECUTIVEOFFICER


GLOBALFOUNDRIES’ Worldwide

Standards: Code of Conduct

GLOBALFOUNDRIES’WorldwideStandards:

CodeofConduct(Code)isthefoundationofour

Ethics&Complianceprogramandsetsforththe

basicrules,standards,andbehaviorsthatwe

mustfollowtoachieveourbusinessobjectives

whileupholdingourvalues.TheCodesummarizes

legalandethicalstandardsandprovidespractical

advicecoveringawiderangeofissuespertinent

toethicalbusinesspractices,includinghuman

rights,discrimination,harassment,environmental

responsibility,protectionofintellectualproperty,

andanti-corruption.Italsoexplainsthemajor

elementsofourcomplianceprogramandidentifies

whereemployeescanseekhelpandsupport.The

Codehasbeencommunicatedtoallemployees,

andemployeetrainingand/orcertificationonthe

Codeisrepeatedannually.

GLOBALFOUNDRIES’Codeisalignedwiththe

EICCCodeofConduct.GLOBALFOUNDRIES

joinedtheElectronicsIndustryCitizenship

Coalition(EICC)inMay2016.Westandcommitted

totheEICCCodeanditscontinuouspursuitof

excellenceincorporateresponsibilityandthe

extensionofresponsiblepracticesthroughoutthe

supplychain.Weassessourownconformancewith

theEICCCodeusingtheEICC’sself-assessment

toolsforeachofourmanufacturingsites,andmake

theresultsavailabletoourcustomers.Todate,the

resultsindicatealowriskofnon-conformancewith

theEICCCode.Inaddition,weareworkingwith

keycustomerstoparticipateintheEICCValidated

AuditProcess.

GLOBALFOUNDRIEShasestablishedtheEthics&

ComplianceOfficewithintheLegalDepartmentto

develop,coordinate,andsupportthecompliance

programandfosteracultureofprincipledbehavior

anddecision-making.ThisOfficeisresponsiblefor

promotingemployeeawareness,education,and

training,aswellasforcreatingandimplementing

aprogramtoassessrisksandproactivelyprevent

anddetectunlawful/unethicalconduct.TheEthics

&ComplianceOfficeworkscloselywiththeEthics

Committee(includingtheChiefHumanResources

Officer,ChiefFinancialOfficer,andChiefLegal

Officer),whichisthebodychargedbytheBoard

ofDirectorstooverseethecomplianceprogram.

GOVERNANCE03

GLOBALFOUNDRIES is committed to upholding the

highest ethical and compliance standards. Every one

of our employees, contractors, and consultants has

the responsibility to carry out his or her duties in a

manner consistent with this commitment.


TheGLOBALFOUNDRIESEthicsFirstHelpline

isaccessible24hoursaday,365daysayear,

enablingemployeesandstakeholderstoinquire

directlyaboutthecomplianceprogramandreport

potentialviolationsandotherconcerns.The

Helplineisavailabletoemployeesandcontractors

aswellascustomers,suppliers,andvendors

globally.Wepromptlyreviewallreports,andthe

companyhasastrongnon-retaliationpolicyto

protectanyonewhomakesagood-faithreport.

Investigationsofcomplaintsareoverseenby

theGLOBALFOUNDRIESEthics&Compliance

Office,supportedconfidentiallybyother

internalorganizationssuchasInternal

AuditandGlobalSecurity.

Governance

Corporategovernanceaddressesthewayinwhich

companiesaredirected,controlled,andmanaged.

Ourgovernanceframeworkisfocusedonfour

pillars:responsibility,fairness,transparency,and

accountability.

Board of Directors

TheBoardofDirectors(theBoard)isthebody

chargedwiththeultimateresponsibilityfor

ensuringappropriategovernanceacrossthe

organization,andestablishesthe“toneatthetop.”

TheBoardreviewsanddeterminesthecompany’s

strategy,monitorsandassessesthecompany’s

corporateandfinancialperformance,establishes

andmonitorseffectivecompliancesystems

andpolicies,andoverseestheperformanceof

GLOBALFOUNDRIES’executivemanagement.

TheBoardiscomposedofourCEO,Sanjay

Jha;representativesofMubadalaDevelopment

Corporation,ourshareholder;andothersenior

industryleaders.TheBoarddrawsonagreatdepth

ofexperiencethatspansthesemiconductorand

equipmentindustries,internationalfinance,law,

energy,aerospace,andbusinessdevelopment.

TheChairmanoftheBoardisnotanexecutive

officerofthecompany.

Board Committees

ThreecommitteessupporttheBoardincarrying

outitsgovernanceresponsibilities:Audit,Risk&

Compliance;People&Compensation;andSecurity

(seeabove).

The Audit, Risk & Compliance Committee (ARC)

ismandatedbytheBoardtooverseetheintegrity

offinancialstatements;compliancewithlegal

andregulatoryrequirements;theeffectiveness

ofinternalsystemsandcontrols(includingthe

company’sinternalauditfunction);therisk

managementfunction;andtheindependence,

qualifications,andperformanceofthecompany’s

externalauditors.

The People & Compensation Committee

assiststheBoardinfulfillingitsresponsibilities

concerningthehiringandcompensationof

ourexecutivesandinprovidingguidanceto

GLOBALFOUNDRIES’managementon

personnelandcompensationissues.

The Security Committeeoversees

GLOBALFOUNDRIES’anditssubsidiaries’

commitmentstotheU.S.governmentregarding

security,compliance,andrelatedmatters,including

policiesandproceduresforexportandcustoms

compliance,informationtechnologysecurity,

andtheprotectionofphysicalassets,facilities,

andintellectualproperty.

GLOBALFOUNDRIES’ Chief Executive Officer

GLOBALFOUNDRIES’ChiefExecutiveOfficeris

responsibleformanagingthecompany’sbusiness

andisaccountabletotheBoard.Theprimary

responsibilitiesofourCEOandseniormanagement

broadlycoverthemanagementoftheday-to-day

operationsofthebusiness,strategicplanning,

budgeting,financialreporting,riskmanagement,

andcompliance.

03 GOVERNANCE GLOBALFOUNDRIESBoardofDirectors

Audit, Risk& Compliance

Committee

People & Compensation

Committee

SecurityCommittee


Support for the Board and its Committees

WiththeARC,theLegalDepartmentandthe

InternalControlsDepartmentaremandated

bytheCEOtooverseecorporategovernance

atGLOBALFOUNDRIES.Together,theLegal

DepartmentandtheInternalControlsDepartment

ensurethattheorganizationadherestothe

company’scorporategovernanceframework

andassociatedpoliciesandprocedures,provide

guidance,andensuretrainingsessionsare

conductedonaregularbasis.

Internalandexternalauditorsplaycrucial

rolesinassistingtheBoardandmanagement.

Externalauditorsareresponsibleforauditingthe

financialstatementsofthecompany.TheInternal

Auditorganizationplaysanimportantrolein

providingtheBoardandseniormanagement

withobjectiveassurancesupportforthebusiness

andconsultingservices.InternalAuditevaluates

theeffectivenessofriskmanagement,internal

controls,andgovernanceprocesses,andmakes

recommendationsforimprovement.InternalAudit

alsoactsasabridgebetweentheBoardand

management,andreportstotheARCCommittee.

Inaddition,theComplianceNetworkpromotes

ourcultureofprincipledbehavioranddecision-

making.TheComplianceNetworkconsistsofa

groupofinfluentialemployeeswhoserveasEthics

&Compliancerepresentativestohelpidentifykey

compliancerisks,driveengagement,andensure

thattrainingandcommunicationsaretailoredto

theneedsoftheindividualsites.

Delegation of Authority

GLOBALFOUNDRIESisanintegralpartofthe

MubadalaGroup.Animportantmechanismin

maintainingastrongrelationshipwithoursole

shareholderistheshareholder-approved

DelegationofAuthority(DOA).TheDOAallows

theshareholdertoexercisecontrolandoversight

overtheauthoritylevelswithinthecompany.

TheDOAisacriticalcomponentofourcorporate

governancestructure.Inaccordancewiththe

GLOBALFOUNDRIES’DOA,theBoardhas

delegatedcertainofitspowerstotheBoard

Committees,theCEO,andmanagement.TheBoard,

management,employees,contractors,agents,and

anyoneactingonbehalfofGLOBALFOUNDRIES

areresponsibleforensuringthattheyoperatein

accordancewiththeDOA.Onanongoingbasis,

managementincoordinationwiththeARCensures

thattheDOAisappropriateforthenatureofthe

businessandthatitisreviewedonanannualbasis.

Executive CSR Council

InadditiontotheoversightprovidedbytheBoard

anditscommittees,theGLOBALFOUNDRIES

ExecutiveCSRCouncilisresponsibleforsetting

strategicdirection,conductingmanagement

review,andprovidingapprovalforglobal

Environmental,Health&Safety(EHS)and

CorporateSocialResponsibility(CSR)matters.

TheExecutiveCSRCouncilmembershipincludes

seniorexecutivesfromGlobalOperations;Global

SalesandBusinessDevelopment;GlobalSupply

Management;Communications;Legal(including

Ethics&Compliance);HumanResources;andRisk

Management,Sustainability,andRealEstate.

Risk Management

GLOBALFOUNDRIESmanagesriskatthe

enterprise,business,andfunctionallevels.

Ourstructuredapproachenablesustoidentify

criticalrisksandtargetmitigationprogramsat

theappropriateleveltoavoidloss,disruption,

orinterruptionofmission-criticalactivitiesand

systems.Weroutinelyreviewandupdateour

businessresilienceandpreparation,including

riskmitigationandbusinesscontinuityplans.

Eachyear,ourmanufacturingsitesandbusiness

unitsidentifythepotentialoperationalandnatural

disasterrisksthatpresentbusinesscontinuity

challenges.Executivemanagementconductsan

annualreviewofprioritizedrisksandourrelated

mitigationstrategies,projects,andgoals.

Protectingtheintellectualpropertyof

GLOBALFOUNDRIESandourcustomersand

suppliersisacriticalrisk-managementfocus

area.GLOBALFOUNDRIES’growingportfolioof

intellectualpropertyadvancesourleadershipin

manufacturingtechnologyandstrengthensour

competitiveposition.Weadheretostrictpolicies

andproceduresatalltimestoensurethesecurity

ofcompanyconfidentialinformationandthe

confidentialinformationofourcustomersand

suppliers.OurEnterpriseSecurityCouncilbrings

togetherexpertiseinbothinformationsecurity

andphysicalsecuritytoaddresspotentialthreats.

03 GOVERNANCE

1 0G LO B A L F O U N D R I E S CO R P O R AT E R E S P O N S I B I L I T Y R E P O R T 2 0 1 6

STAKEHOLDERENGAGEMENT

04

Our key stakeholders have a significant interest in our business and

help shape our company and the products and services we provide.

We regularly engage with our employees, customers, suppliers,

communities, and industry peers, sharing perspectives and gaining

valuable insight relevant to our business and operations.

GLOBALFOUNDRIESiscommittedtobeingthemost

customer-centricpartnerintheindustry,workingwith

customerstoachievetheirbusinessobjectives.Thedesign

oftoday’scomplexintegratedcircuitsrequiresstate-of-

the-artelectronicdesignautomation(EDA)softwaretools,

designintellectualproperty(IP),designservices,mask

services,andassemblysolutions.GLOBALFOUNDRIES

supportscustomersinachievingsuccessfuldesignsby

partneringwithleadingprovidersintheseareas.

Engineeringcollaborationwithcustomersunlocksand

enablesthepowerofcustomerdesignsthroughwafer

manufacturing,bump,andpackagetechnologies.

GLOBALFOUNDRIESreviewsandanalyzescustomer

feedbackthroughanumberoftools,includingQuarterly

BusinessReviews,tocontinuouslyimproveourqualityand

service.Therelationshipswemaintainthroughongoing

dialogueandcollaborationensurethatweunderstandour

customers’expectations,includingasharedcommitment

tosocialandenvironmentalresponsibility.

CUSTOMERS


04 STAKEHOLDER ENGAGEMENT

WetakegreatprideinthededicationandcommitmentofourglobalworkforcetoGLOBALFOUNDRIES’success.

Wenurtureaperformance-basedcultureinanenvironmentthatencouragesindividualdevelopment,collaboration,and

newideas.Employeesstaycurrentoncorporateandlocalsiteinformationthroughanumberofcommunicationformats,

includingourinternalweeklyglobalnewsdigest,ourcompanyintranet(GlobalConnect),regularcorporateandemployee

communications,andtownhallmeetings,allofwhichincludeopportunitiestoaskquestionsandprovidefeedback.

Employeesalsoengageandsharetheirideasthroughparticipationinvariouscommitteesatthesitelevel.

In2015,theSingaporeEHS-SecurityteampioneeredtheGlobalEchoesmonthlynewslettertoengagewithsite

stakeholdersonenvironmental,health,safety,andsecurityissues.Theeffortwaswellreceived,andin2016the

DresdenandU.S.fabsitesbuiltuponSingapore’ssuccessfulexamplewithlocalversionsofGlobalEchoestailored

toenhanceengagementwiththeirsitestakeholders.

EMPLOYEES

Alongwithourglobalfootprintcomesaresponsibilitytothecommunitiesinwhichweoperate.Ata

worldwidelevel,weaimtodriveprogramsthatarespecificallyfocusedoneducationoutreach,philanthropy,

andtheenvironment.

COMMUNITIES

Senior Vice President and General Manager Tom Caulfield and

our Fab 8 employees partnered with the U.S. Marine Corps

Reserve’s Toys for Tots Program in 2015, donating more than

2,000 toys to children in New York’s Capital Region community.

Green Mountain Power and the town of Williston partnered with

GLOBALFOUNDRIES to develop a 4.7 megawatt solar facility

located on our Vermont campus. The facility will provide enough

electricity to power 1,100 homes in the region.


Throughourparticipation—andleadership—in

semiconductorindustrytradeassociations,we

gainvaluableinsightintotheeconomic,social,and

environmentaltrendsthataffectourbusiness.These

groupsincludetheSemiconductorIndustryAssociation

(SIA),theEuropeanSemiconductorIndustryAssociation

(ESIA),theWorldSemiconductorCouncil(WSC),the

GlobalSemiconductorAlliance(GSA),Semiconductor

EquipmentandMaterialsInternational(SEMI),ZVEI(a

leadingGermanelectronicstradeassociation),andthe

ElectronicIndustryCitizenshipCoalition(EICC).

GSA’smembershipspanstheentiresemiconductor

ecosystem,representingtheworld’sbestintegrated

devicemanufacturers,fablesscompanies,andtheir

suppliers.Theseassociationsareengagedinawide

varietyofpublicpolicymattersrangingfromtrade,tax,

andenvironmentalpolicytopromotingSTEMeducation

andtheadoptionofenergy-efficienttechnologies.

SIA,ESIA,theWSC,andSEMIallhaveactiveEHS

committees.GLOBALFOUNDRIESisalsoamemberof

theAbuDhabiSustainabilityGroup(ADSG),established

in2008bytheEnvironmentAgencyAbuDhabi

andtheExecutiveCounciltopromotesustainability

managementbyprovidingpolicysupport,education,

andknowledge-sharingopportunitiesforgovernment,

privatecompanies,andnon-profitorganizations.

Sinceourinception,GLOBALFOUNDRIEShas

beencommittedtotheEICCCodeofConductand

itscontinuouspursuitofexcellenceincorporate

responsibilityandtheextensionofresponsiblepractices

throughoutthesupplychain.GLOBALFOUNDRIESfully

supportsthevisionandgoalsoftheEICC,andweare

workingtowardconvergencewithbestpracticesinour

ownoperationsaswellaswithourmajorsuppliers.


Suppliersofgoodsandservicesplayacriticalrolein

ourbusiness.Oursupplierrelationshipsarebuiltona

foundationoftrustandintegrity.Westrivetoestablish

long-termworkingrelationshipsthroughmutual

performanceexpectationsandmeasures,performance

feedback,andcontinuousimprovementplans.We

engagewithoursuppliersthroughmeasuressuchas

periodicbusinessreviewsandourTotalSupplierRating

(TSR)processtodeterminesupplierperformancewith

regardtotechnology,quality,cost,flexibility,and

serviceincludingEnvironmental,Health&Safety(EHS)

andCorporateSocialResponsibility(CSR).EHSand

CSRexpectationsareestablishedearlyinsupplier

relationshipstoimproveefficiencyandreducerisks

throughoutthesupplychain.GLOBALFOUNDRIES’

commitmenttotheEICCCodehasbeenwell

communicatedandcontinuesasafocalpoint

ofengagement.

INDUSTRY COLLABORATION

SUPPLIERS



The Materiality Analysis Weconductedaninternalmaterialityanalysis

in2016toidentifytopicsconsideredmaterialto

GLOBALFOUNDRIES.Todoso,weassembled

ateamrepresentingdifferentorganizations

fromwithinourcompanythatreflectadiverse

spectrumofperspectivesonGLOBALFOUNDRIES,

aswellasamultitudeofinsightsintointernaland

externalstakeholderexpectationsandperceptions.

TheMaterialityAnalysisTeamiscomposed

ofseniorrepresentativesfromacrosssection

ofGLOBALFOUNDRIESorganizations:

Communications,CustomerEngineering,Ethics

&Compliance,GlobalEHS&CorporateSocial

Responsibility,GlobalSupplyManagement,

HumanResources,ProductManagement,Risk

Management,Sustainability,andRealEstate.

TeammemberswerenominatedbyourCSR

ExecutiveCommitteebasedontheirrolewithin

thecompany,aswellastheirinsightsintointernal

andexternalstakeholders’perspectivesasper

theirfunctionwithinthecompany.Inconducting

thematerialityanalysis,theteamstartedby

identifyingpotentialmaterialtopics.Insubsequent

anditerativesteps,thesetopicswereprioritized

withregardtotheireconomic,environmental,and

socialimpactstoGLOBALFOUNDRIES,aswellas

theirperceivedlevelofimportancetointernaland

externalstakeholders.

Theresultingmaterialitymap,aspresentedat

rightinFIGURE1,wasreviewedandapprovedby

GLOBALFOUNDRIES’ExecutiveCSRCouncil.

FIGURE 1 GLOBALFOUNDRIES’MaterialityMap(PerMaterialityAnalysisPerformedInQ22016)

1

2

3

4

5

6

7

8

9

10

11 12

13

1415

ETHICALBUSINESSPRACTICES

DIVERSITYANDEQUAL

OPPORTUNITY

CUSTOMEREXPERIENCEAND

DATAPROTECTION

TRAININGANDEDUCATION,EMPLOYEEPERSONALANDPROFESSIONAL

DEVELOPMENT

ECO-EFFICIENCY:RESOURCEUSE

EMPLOYEEHEALTHANDSAFETY

RISKMANAGEMENT

CONFLICTMINERALS

SUPPLIERRESPONSIBILITY

HUMANRIGHTS

COMPLIANCE

ECO-EFFICIENCY:EMISSIONS,WASTE,ANDEFFLUENTS

COMMUNITYECONOMICIMPACTSANDRELATIONS

ECONOMICPERFORMANCE

EMPLOYMENT,EMPLOYEEBENEFITS

IMPACTTOGLOBALFOUNDRIES

RE

LE

VA

NC

ET

OG

LO

BA

LF

OU

ND

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S’

ST

AK

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RS


GLOBALFOUNDRIES’ commitment to corporate

responsibility extends to ensuring that our

suppliers follow ethical and responsible business

practices. Our supply chain consists primarily of

manufacturers of highly specialized semiconductor

manufacturing equipment and materials, as well

as highly specialized business services. The vast

majority of our suppliers conduct their operations in

the United States, Germany and other EU countries,

Japan, Singapore, and Taiwan—countries with strong

regulatory systems defining the cornerstones of

responsible business.

SUPPLIERRESPONSIBILITY

05

In2009,ourfoundingyear,GLOBALFOUNDRIESadoptedtheElectronics

IndustryCitizenshipCoalition(EICC)CodeofConducttoalignourapproach

tosupplychainCSRwiththisindustry-widecommitmenttosociallyand

environmentallyresponsiblebusinesspractices.GLOBALFOUNDRIES

implementsandre-enforcestheEICCCodethroughoursuppliermanagement

process.OurGlobalSupplierandSubcontractorManagementPolicy,standard

supplieragreements,andpurchaseordertermsandconditionsallrequire

conformancewiththeEICCCode.

Weconductregularsuppliersurveystodetermineoursuppliers’riskof

non-conformancewiththeEICCCode’sexpectations.Weemployindustry-

standardself-assessmenttoolswithourtoptiersuppliers,aswellasother

suppliersbasedonanassessmentofpotentialrisk.Whereapplicable,the

resultsofEICCnon-conformanceriskassessmentsareincludedinour

TotalSupplierRating(TSR)process.Wecontinuetodevelopoursupplier

assessmentprogramwithmeasuressuchason-siteverification.


Conflict Minerals—Achieving a DRC Conflict-Free Supply ChainGLOBALFOUNDRIESisconsciousoftheseverehumanrightabusesin

conflictregionsoftheDemocraticRepublicofCongo(DRC)andadjoining

countries,andthefinancialsupportthatcomesfromextractiveminerals

production.Weareproudtohaveachievedafully“DRCConflict-Free”

supplychain.AsofJanuary2016,allGLOBALFOUNDRIESsourcingof

tantalum,tin,tungsten,andgold(“3TGmetals”)isfromsmeltersincluded

onthelistofcompliantsmeltersmaintainedthroughtheCFSI’sConflict-Free

SmelterProgram(CFSP).Anynewcommoditiesincluding3TGmetalsmust

besourcedonlyfromCFSP-compliantsmelters.

The3TGmetalsareusedinnumerousapplicationsthroughoutthe

electronicsindustry.Inthecomplex,multi-stepsiliconwafermanufacturing

process,tantalumandtungstenareaddedtoachievethedesired

functionalitiesofintegratedcircuits.Thecommoditieswepurchasethat

containtantalumortungstenincludehigh-puritytargetsusedinphysical

vapordeposition(PVD)andprocessgasesandchemicals,allofwhich

areusedtodepositultra-thinfilmsofthesemetalsdirectlyontothe

wafersurface.Tinandgoldareusedinpost-waferfabprocesssteps,such

asininterconnectmaterialsinwaferbumporwaferpackaging,andin

componentsusedforsemiconductormoduleassembly.

GLOBALFOUNDRIEShassupportedglobaleffortstoachieveaDRC

conflict-freesupplychaininthesourcingof3TGmetalssince2009,

andisamemberoftheConflict-FreeSourcingInitiative(CFSI).

GLOBALFOUNDRIESestablishedaconflictmineralspolicywhich

prohibitssourcingthatcontributestofinancingarmedconflict

andhumanrightsabusesintheconflictregionsoftheDRCand

adjoiningcountries.

Weconductedathoroughassessmentofoursupplybasetoidentifyall3TG

metalssuppliers.Weworkedwiththesesupplierstoidentifyallsmeltersin

ourextendedsupplychainanddeterminedtheirprogressinmovingtowards

certificationasCFSI“DRCConflict-Free”smelters.

Tosupportourcustomers’needsforreportingundertheUnitedStates

SecuritiesandExchangeCommission’s(SEC)ConflictMineralsRule

(regulationsundertheU.S.Dodd-FrankWallStreetReformand

ConsumerProtectionAct),weroutinelyprovideduediligence

informationusingindustry-standardreportingtoolsandprocesses.

Ourconflictmineralsprogramandprogressarereviewedperiodically

bytheExecutiveCSRCouncil.

05 SUPPLIER RESPONSIBILITY

Peter Benyon, Vice President and General Manager of GLOBALFOUNDRIES Fab 7 in

Singapore, presenting an outstanding service award to Eric Poh, Lam Research,

at the 2015 GLOBALFOUNDRIES Singapore Supplier Appreciation Event


GLOBALFOUNDRIES relies upon our people to

deliver on our mission to enable our customers’

success with the right technology at the right time.

Individuals with varied backgrounds enrich our

ideas and drive innovation. Our strength lies in

the talent and diversity of our employees, who

bring a range of capabilities, experiences, and

qualifications that give us a competitive advantage

in our global markets.

GLOBALFOUNDRIES strives to create a working

environment that respects diversity and allows

employees the opportunity to learn, grow, and

develop their talents. TABLE 1 shows a breakdown

of our workforce and our leadership team by

region and by gender.

OUR PEOPLEAND WORKPLACE

06

TABLE 1 EmployeeAndLeadershipTeamCompositionData(AsOfDecember2015)

Number of Employees 18,500 75% 25%

•USA 44% 79% 21%

•Europe,MiddleEast,Africa 21% 82% 18%

•AsiaPacific/China 35% 65% 35%

Senior Leadership Team 18 89% 11%

Board 10 90% 10%

INDICATOR TOTAL MEN WOMEN


Whilewenaturallyhaveaninternational

workforceduetothespanofourgloballocations,

GLOBALFOUNDRIESisalsoproudtobean

employerofahighlydiverseworkforcewithin

oursites.Forexample,atFab8inNewYork,

GLOBALFOUNDRIEShascreatedcloseto3,000

newdirectjobssincebreakinggroundonthe

projectin2009.Ouruniqueanddiverseworkforce

isdrawnfromlocaltalentaswellasexperienced

professionalsfromacrosstheUnitedStatesand

representsmorethan50nationalities.Similarly,

whilethemajorityofourworkforceatFab1in

Dresden,Germany,ishiredlocally,thefabishome

toemployeesfrommorethan50nations.

Withrespecttogenderdiversity,weare

committedtotheadvancementofwomen

atGLOBALFOUNDRIES.In2013,weinitiated

GLOBALWOMEN,aprogramthatprovidesa

networkingforumandfocusesoncreatinga

sustainableframeworkfortheprofessionalgrowth

ofwomen.GLOBALWOMENpursuesinitiatives

designedtomakeapositiveimpactonwomen

andourbusinessbyincreasingawarenessof

genderdiversityandleveragingthecriticalrole

ofwomenintheGLOBALFOUNDRIESworkplace.

GLOBALWOMENhasbeenexpandedacrossthe

U.S.andtoournewlyacquiredsites.

07 OUR PEOPLE AND WORKPLACE

STEPAheadRecognition for GLOBALFOUNDRIES Employees

OnApril21,2016,GLOBALFOUNDRIES

joinedleadersfrommorethan200companies

tohonor130womeninmanufacturingat

aneveningcelebrationinWashington,D.C.

LaunchedbytheManufacturingInstitute,the

STEPAheadinitiativehonorsandpromotes

theroleofwomenwhohavemadesignificant

contributionsinthefieldsofScience,

Technology,Engineering,andProduction

(STEP).GLOBALFOUNDRIEShelpeddevelop

STEPAheadasachartermemberofthe

AdvisoryBoard.

RepresentingGLOBALFOUNDRIESattheSTEP

AheadAwardswereDebLeach,SeniorDirector

ofProcurement,Fab8;andAmeliaFolkins,

ManagerforEquipmentEngineering(Etch),

Fab10.DebandAmeliaweretwoofthefour

EmergingLeadersandHonoreesfromNew

YorkState.STEPEmergingLeadersarewomen

intheindustrywhoaremakingsignificant

contributionsandexcellingearlyintheircareers.

STEPHonoreesarewomenintheindustrywho

havedemonstratedexcellenceandleadership

intheircareers,fromthefactoryfloorto

theC-Suite.

STEPAheadplaysanintegralrolein

GLOBALFOUNDRIES’strategytoincrease

genderdiversityandensureasustainable

pipelineofskilledtalent.DebandAmelia

followinthefootstepsofAlexieLee,Chief

ofStafftoCEOSanjayJha,whowasthefirst

GLOBALFOUNDRIESemployeenominatedfor

thisdistinguishedawardwhentheinitiative

launchedin2013.

Amelia FolkinsManagerforEquipmentEngineering,Fab10

Deb Leach SeniorDirectorofProcurement,Fab8


Compensation & BenefitsGLOBALFOUNDRIES’GlobalBenefitsStrategyistoprovidecompliantand

cost-effectivebenefitprogramsthatareconsideredcompetitiveagainstcurrent

localmarketnorms.Ourgoalistogainbalancebetweenglobalstandardization

andlocalcustomization,whileofferingouremployeesprotectionandflexibility

withtheirbenefitofferings.Werecognizethatbenefitenvironmentsvaryby

country,andthereforethetypesofbenefitplansweofferreflecttheprevailing

localmarketpractices.Benefitsunderthisstrategyincludehealthcare,risk

benefitssuchaspersonalinsurance,retirement/savings,timeoff,educational

assistance,andotherlocation-specificbenefits.

Forexample,GLOBALFOUNDRIES’approachtoparentalleaveforemployees

forthebirthoradoptionofachildisbasedonacombinationofnationaland

localleaveentitlementsimplementedthroughourregionalleavepolicies.

AsshowninTABLE2,morethan95percentofemployeeswhohavetakena

parentalleavereturnedtowork,witha7percentdifferencebetweentherates

formenandwomen.Thesubsequentretentionrateforemployeesfollowing

parentalleavewasmorethan84percent,withadifferencebetweenmenand

womenthatissimilartothereturntoworkrate.

Human RightsGLOBALFOUNDRIESisstronglycommittedtoprotectingthefundamental

rightsofallpeople.Westrivetomaintainafairandopenworkplacebased

onacultureofrespect,dignity,andintegrityforall.Asoutlinedinour

WorldwideStandards:GLOBALFOUNDRIESCodeofConduct,thecompany

strictlyforbidsallformsofchildlaborandforced,compulsory,ortrafficked

laborintheoperationofourbusiness,andwerequirethesamefromour

suppliers.Werespecttherightsofemployeestoassociatefreelyandhavea

zero-tolerancepolicyagainstharassment,includingsexualharassment,and

discriminationbasedonage,ancestry,color,maritalstatus,medicalcondition,

mentalorphysicaldisability,nationalorigin,race,religion,politicaland/orthird-

partyaffiliation,sex,sexualorientation,genderidentity,orveteranstatus.

Employee Education & TrainingAtGLOBALFOUNDRIES,werecognizetheimportanceofdevelopingour

peopleasacornerstoneofoursuccess.Todothat,weprovideemployeeswith

opportunitiestoenhancetheirknowledge,skills,andabilitiesthroughtechnical

andcorporatetrainingprograms.UsingthethreepillarsofExperience,

Exposure,andEducation,weofferinstructor-ledcourses,e-learning,videos,

interactivesimulations,andjobaideducationsolutions.Wealsosupportour

employees’developmentthroughmentoring,professionalcertifications,and

partnershipswithoutsideorganizations.Wearebuildingthefoundationofa

learningculturewhereallemployees,fromindividualcontributorstosenior

executives,learnandgrowthroughnewchallenges,jobrotations,special

projects,andongoingfeedbackfromtheirmanagers.Weincorporateall

ofthesedevelopmentalopportunitiesthroughourannualperformance

evaluationprocess.

Health & SafetyProtectingthehealth,safety,andwell-beingofouremployees,visitors,and

communitiesisoneofourgreatestresponsibilities,onethatweembrace

proactivelyandsystematically.WearecommittedtoBehavior-BasedSafety

(BBS),acollaborativeapproachtosafetythatrecognizesandfacilitates

individualsafetyawarenessandbehaviors,withcollectiveresults.Westriveto

continuouslyreduceoccupationalinjuriesandillnessesinallofouroperations,

withanultimategoalofzeroincidents.Allofourmanufacturingfacilitiesare

certifiedtotheOHSAS18001standardforhealthandsafetymanagement

systems.OurOHSAScertificatesareavailable here.


TABLE 2 ParentalLeaveData(2015)

*OFTHEEMPLOYEESWHOTOOKPARENTALLEAVEIN2014,97%RETURNEDTOWORKAFTERLEAVE

**OFTHEEMPLOYEESWHOTOOKPARENTALLEAVEIN2015,85%WERESTILLEMPLOYEDASOFMAY2016

Return to Work After Parental Leave*

95% 97% 90%

Retention Rate After Parental Leave**

85% 87% 79%

INDICATOR TOTAL MEN WOMEN

http://www.globalfoundries.com/about/manufacturing/quality-management


BothGLOBALFOUNDRIESFab9andFab10arerecognizedasOSHAVPP(Voluntary

ProtectionPrograms)Starsites.TheVPPStardesignationisheldbyonlyasmallfraction

ofcompaniesintheU.S.andisbaseduponmeasurableresults,continuousimprovement,

andon-siteauditsthatdemonstrateexcellenceinareassuchasmanagementleadership

andemployeeinvolvement,worksiteanalysis,hazardpreventionandcontrol,andsafety

andhealthtraining.

AllthreeGLOBALFOUNDRIESSingaporeentitieshavebeenawarded2015and2016silver

awardsattheWorkplaceSafetyandHealth(WSH)Awards.TheWSHPerformanceAwardwas

startedin2006bytheSingaporeWorkplaceSafetyandHealthCouncilandtheSingapore

MinistryofManpower,andrecognizesorganizationsthathaveachievedexcellentperformance

inWSHthroughtheimplementationofsoundWSHmanagementsystemsorprocesses.“We

areveryhonoredandmotivatedtoreceivethreeawardsthisyearforalloursites.Thisaffirms

ourcontinuedeffortstoachieveasaferandhealthierworkplaceforeveryone,”saidKayChai

“KC”Ang,SeniorVicePresidentandGeneralManager,SingaporeOperations.

OurGlobalEHSPolicyandStandardsarethe

foundationofhealthandsafetymanagement

systemsateachmanufacturinglocation.The

Standardsprovideaconsistentstandardofcare,and

setperformanceexpectationsapplicableglobally

throughoutthecompany.OurStandardscoverawide

rangeofhealthandsafetyaspects,includinginjury

andillnessprevention,electricalsafety,chemical

safety,andindustrialhygienemonitoringprograms.

GLOBALFOUNDRIES’healthandsafetyprofessionals,

management,andemployeesshareresponsibilityfor

implementingtheStandardsateachfabsitethrough

localprogramsandoperatingprocedures.

Healthandsafetyprofessionalsengagewith

operationalpersonneltoanalyzepotentialprocess

hazardsandmitigatethemaccordingtothe

followinghierarchyofcontrols:

Elimination(example—eliminateuseofamaterial)

Substitution(example—substitutealesshazardous

processormaterialforamorehazardousone)

Engineeringcontrols(examples—ventilation,

equipmentinterlocks,enclosure/segregation,etc.)

Administrativeprocedures(examples—procedures,

training,etc.)

Personalprotectiveequipment(tomanage

anyresidualrisksafterallothercontrolshave

beenimplemented).

Behavior-BasedSafetyemphasizescommunications,

engagement,andtrainingtoencouragesafebehaviors.

Weprovideawiderangeofgeneralandjob-specifichealth

andsafetytrainingtoouremployeesandcontractors.

Westriveforcontinuousimprovementofour

processesandperformanceaswellasthe

semiconductorindustry.OurRiskManagement,

Sustainability&RealEstateorganization(RMSRE)

providesauniqueplatformforcollaboration

andintegrationacrossthedisciplinesofSafety,

Environmental,IndustrialHygiene,Health,Security,

RealEstate,andRiskManagement—unitedinthe

pursuitofoperationalexcellenceandthemitigation

ofriskstoourpeople,communities,andassets.

TheRMSRECentersofExcellenceprogramprovides

opportunitiesforstafffromdifferentsitestowork

togetherinordertodriveglobalintegrationandbest

practiceidentificationandimplementation.Wealso

encourageandmakeavailableourhealthandsafety

professionalstohelpimprovehealthandsafetyinthe

industrybycontributingtothedevelopmentof

industry-widestandards.


HealthandSafetyRecognition

KC Ang, Senior Vice President and General Manager,

GLOBALFOUNDRIES Singapore and members of the EHS &

Security team celebrate receiving Silver Workplace Safety and

Health (WSH) Awards at the 2016 WSH Award Ceremony.


Safety in the WorkplaceGLOBALFOUNDRIESmeasurestheperformanceofourhealthandsafetyprogramsusingalostworkdaycaserate*andseveritycaserate.*Weevaluatealloccupationalinjuriesandillnesscasestoidentifytheirrootcausesanddetermineappropriatepreventivemeasuresorcorrectiveactions.

AsshowninFIGURE2,from2011to2015ouremployeelostworkdaycaseratedeclinedfrom0.29in2011to0.2in2015,withaspikeof0.31during2014.Incomparison,the2014U.S.LostWorkDayIncidenceRate(themostrecentyearforwhichthisnumberisavailable)forthesemiconductorindustrywas0.3.

Managing Chemicals SafelySemiconductorprocessingtakesplaceinahighlycontrolledcleanroomenvironment.Manufacturingequipmentandchemical/gasdistributionsystemsarecompletelyenclosedtomaintainanultra-cleanmanufacturingspaceandprovidesafeworkingconditions.Stringentmaterialhandlingproceduresincludeautomatedchemicaldeliverysystemsandsophisticatedmanufacturingequipmentthatincorporatesmultipleengineeringcontrolstominimizetheriskofchemicalexposureforemployeesworkinginthecleanroomandchemicaldistributionareas.

GLOBALFOUNDRIES’chemicalreviewprocessesensurethatallnewchemicalsarethoroughlyreviewedbeforeintroductiontooursites,andthatpropersafeguardsandmaterialhandlingproceduresareinplace.OurchemicalmanagementsystemsateachsiteprovideemployeeswithreadyaccesstoSafetyDataSheetsandidentificationofappropriatepersonalprotectiveequipment.

Promoting Health and Well-BeingWeplacegreatvalueonouremployees’overallhealthandwellness.Eachofourmanufacturingfacilitieshasanon-siteclinicandmedicalprofessionalswhoadministerhealthandwellnessprogramsincollaborationwithHumanResources.Weencourageemployeestolivehealthy,activelives,andprovidethemwithaccesstoavarietyofactivitessuchasvaccinations,healthscreeningsandsurveillance,firstaidtraining,andsafetytipsfortravelers.

Ourongoingwellnessprogramsprovidemanyopportunitiesforemployeesandtheirfamiliestolearnabouthealthylivingandlifestyles.Forexample,ourDresdenfacilityprovidesinformationabouthealthydiets,sportsandfitnessactivities,andhealth-relatedbenefitsprovidedbyGLOBALFOUNDRIESonanintranet-basedhealthportal.Furthermeasuresinclude,amongothers,on-sitefluvaccinations,educationalergonomicspresentations,specificon-sitetrainingforFirstAiders,specificmedicalexaminations,andbiometricscreening.

OurU.S.fabs’wellnessservicesincludebenefitssuchason-sitefluvaccinations,educationalpresentations,healthandbenefitsfairs,andbiometricscreeningevents(screeningandcounselingonweight,bloodpressure,cholesterol,andbloodsugar).Inaddition,GLOBALFOUNDRIES’EmployeeAssistanceProgram(EAP)providesallU.S.employeesandtheirfamilieswithconfidentialaccesstoresourcestohelpwithlifemanagementissues.

Resources include: Short-termcounselingsessionsLegalandfinancialservicesChildcare,eldercare,andadoptionreferences

OurSingaporeemployeeshaveaccesstoavarietyofwellnessopportunities,includingfitnessfacilitieswheretheycanparticipateinfitnessclassesandotherorganizedactivitiesthatpromoteahealthy,activelifestyle.


FIGURE 2 LostDayCaseRates&SeverityCaseRates

Note: GLOBALFOUNDRIESdefinesalostworkdaycase

asanyinjuryrequiringoneormoredaysawayfrom

work.Forcomparativepurposes,wehaveprovidedLost

DayCaseratesfor“Semiconductorandrelateddevice

manufacturing”(NAICSCode334413)compiledbythe

U.S.BureauofLaborStatistics.

*2015totalsincludesecond-halfdataonlyforFabs9&10

acquiredasofJuly1,2015.

LOSTDAYCASERATE(>1DAYPER200,000HOURSWORKED)

SEVERITYRATE(LOSTDAYSPER200,000HOURSWORKED)

2011 2012 2013 2014 2015*

0.0 0

1

2

3

4

5

6

0.1

0.2

0.3

0.4

Lo

st

Da

y C

as

e R

ate

Se

ve

rity

Ra

te

OurSingaporesitehosted

ahealthdayonSeptember

8,2015underthetheme

“Happiness.”Activities

includedthe“Confession

Station”—face-to-face

mentoring;“Pat-on-the-

Back”—aforumwhere

employeesshowed

appreciationtoother

employeesandco-workers;

“Frust-station”—therapeutic

activitiestohelp

employeesmanagetheir

frustrationsatworkand

freescalpmassages.

“Happiness” Health Day


COMMUNITYENGAGEMENT

07

Ourcompanyhasaglobalfootprint,andwithita

responsibilitytothecommunitiesinwhichwehave

apresence—aresponsibilitythatextendsbeyond

justmeetingregulatoryexpectations.Ataworldwide

level,welooktowarddrivingprogramsthatare

specificallyfocusedoneducationoutreach,

philanthropy,andtheenvironment.

Eachofourfablocationshaswell-establishedprogramsandteamsdedicatedto

enrichingthelivesoflocalcitizens,andwetakegreatprideintheirlonghistory

ofcommunityinvolvement.ThroughtheGlobalGivesprogram,wearebuilding

uponthesegrassrootsefforts,embracingthemasintegraltoourcompany

identityandconnectingemployeesandteamstoalargerinternationaleffort.

TheGlobalGivesplatformprovidesemployeeswithdirectaccesstomorethan

twomillionnon-profitorganizationstofacilitatebothemployeegivingand

volunteerengagement.Italsoprovidesaneffectivemechanismatthecorporate

levelfordisasterresponse.

“GLOBALFOUNDRIESTAKESOURCOMMITMENT

TOCORPORATERESPONSIBILITYVERY

SERIOUSLY.WESTRIVETOIMPROVETHE

QUALITYOFLIFEINOURCOMMUNITIES

THROUGHOUREMPLOYEES’VOLUNTEER

EFFORTSANDSUPPORTOFEDUCATION,

HUMANSERVICES,ANDENVIRONMENTAL

PROTECTIONINITIATIVES.WEHAVEATRACK

RECORDOFGETTINGINVOLVED,BECAUSEIT

ISSIMPLYTHERIGHTTHINGTODO.”

M I K E C A D I G A N Senior Vice President, Global Sales and Business

Development / ASICS BU and Corporate Executive Sponsor

for Community Involvement at GLOBALFOUNDRIES


Education OutreachGLOBALFOUNDRIESstrivestopromote,develop,andsupporteducational

programs,bothinsideandoutsidetheclassroom,aswellasinourhomesand

localcommunities.Ourmanyactivitiesincludedeveloping,supporting,and

expandinguponeducationalprogramsintheSTEM(Science,Technology,

Engineering,andMath)fields,providingexperientiallearningopportunities

forstudentsandteachers,establishingearlycollegetechnologyprogramsin

highschools,providingmentorshipsforgirlspursuingcareersintechnology,

andprovidingpotentialemploymentopportunitiesforgraduatesinadvanced

manufacturing,amongothers.

Some of the specific programs we have supported include:

TechTuesday,whichintroduceslocalschoolchildrentoSTEM

activities(Malta,NY);

GLOBALGirls,aninitiativeaimedatpromotinginterestandexcitementinSTEM

amongelementary,middle,andhighschoolagegirls(U.S.);

GLOBALAmbassadors,designedtostrengthenGLOBALFOUNDRIES’

engagementwiththeeducationcommunityandsupportthedevelopmentofa

skilledtalentpipeline(U.S.);

FIRST®(ForInspirationandRecognitionofScienceandTechnology)

programs,designedtomotivateyoungpeopletopursueeducationandcareer

opportunitiesinSTEM,whilebuildingself-confidence,knowledge,andlife

skills(Malta,NY);

Microelectronics Academy,whichgivestopyoungengineersexposuretothe

technicalchallengesofthesemiconductorindustry(Dresden,Germany);

Global STEM Initiative,whichprovidesfundingforSTEMprogramsand

activitiesatallofourworldwidelocations(Global);and

“Jugend Forscht”(YouthinScience)Saxony,aregionalcompetitionthat

supportscreativetalentsandencouragesyoungpeopletoputtheirideas

intopractice(Dresden,Germany).

07 COMMUNITY ENGAGEMENT

Festiveawardceremonyfor2016winnersoftheSaxon“Jugendforscht”contestwith

SaxonMinisterofEducationBrunhildKurthandrepresentativesofthecosponsoring

companies.©2016EVENTMODULEDRESDEN


PhilanthropyWebelievethesuccessofourcompanyisdirectlyrelatedtothehealthofthe

communitieswecallhome.GLOBALFOUNDRIESanditsemployeesmakea

differencebygenerouslyvolunteeringtheirtimeanddonatingmoneyand

goodstosupportawidevarietyofphilanthropiccauses,helpingtoimprove

thequalityoflifeinourcommunities.

OurCalendarsforCharityprogramleveragesthewinningimagesfromour

annualemployeephotocontesttocreatecalendarsthataregivento

employeesinrecognitionoftheircharitabledonationsmadeinsupportof

theirlocalcommunities.

Someofthemanylocalprogramswehavesupportedacrossthe

companyinclude:

Hair for Hope,whichservestoraisefundsandpromoteawarenessof

childhoodcancer(Singapore);

Family Giving Tree Holiday Wish Drive,whichprovidesgiftstochildrenin

need(SantaClara,California);

Operation Holiday Happiness,whichprovidesgiftsforneedyfamiliesinlocal

communities(EastFishkill,NY);

Children’s Outreach Program,whichprovidesgiftsanddonationstochildren

separatedfromtheirfamilies(Dresden,Germany);

Burlington Site Food Drive,whichprovidesfoodtohelpfighthungerinthe

localcommunity(Burlington,VT);

Christmas CelebrationsupportingtheMathruEducationalTrustfortheBlind,

whichprovidesfundstopurchasecustom-madenotebooksforchildrenatthe

school(Bangalore,India);and

Malta Food and Toy Drives,whichprovidemuch-neededfoodtotheFood

PantriesoftheCapitalDistrict,andtoystoneedychildrenthroughtheToys

forTotsprogram(Malta,NewYork).

TogetherwiththetownsofMaltaandStillwater,GLOBALFOUNDRIES

establishedandfundedtwocharitablefoundations,specificallydesignedto

benefitthecommunitieslocatednearourMalta,NY,site.Thesefoundations

fundandsupportawidevarietyoflocalcommunityprograms,not-for-profit

organizations,andothercharitablecausesthathavebeenbenefitingthetowns

ofMaltaandStillwatersincethefirstgrantsin2012.Withthe2016awards,

thefoundationswillhaveexceeded$1millionintotalgrantsinvestedinthe

communitiesandretainhealthyendowmentsforcontinued,futuregiving.

GLOBALFOUNDRIESstrivestosupportvaluableeducationoutreachprograms,

improvethequalityoflifeinourcommunitiesthroughourcharitableand

volunteerefforts,andimplementprocessesandtechnologiesthatminimize

ourimpactontheenvironment.Wetakegreatprideintheseeffortsasan

importantaspectofourbrandidentityandareflectionofourvalues.

07 COMMUNITY ENGAGEMENT

WE ARE COMMITTED TO BUILDING UPON THE EFFORTS

OF OUR INDIVIDUAL SITES TO ESTABLISH A COMPANY-

WIDE COMMUNITY INVOLVEMENT INITIATIVE. WE HAVE

ACHIEVED A MAJOR MILESTONE—THE LAUNCH OF

GLOBALGIVES AND OUR CHARITABLE GIVING PLATFORM.

NOW, GLOBALFOUNDRIES HAS A HOLISTIC VIEW OF OUR

EMPLOYEES’ GLOBAL GIVING AND VOLUNTEER EFFORTS,

AND THE ABILITY TO LEVERAGE THOSE FOR THE GREATER

GOOD AND AS A GREAT SOURCE OF PRIDE.


Semiconductormanufacturingoperationsmust

bebothhighlyefficientandextremelyflexible

todeliveroptimalresultsinafast-pacedand

demandingmarket.Wearecommittedtoproviding

differentiatedmanufacturingservicesthatvalue

speed,accuracy,andagilitytohelpensurethatour

customersareconsistentlyprovidedwiththeright

technologiesattherighttimethatmeetorexceed

theirspecificationsforqualityandreliability.

Producingadvancedintegratedcircuitsat

ever-smallergeometriesrequiresexacting

manufacturingprocesses.Asintegratedcircuitline

widthsshrinkandproductsbecomemorecomplex,

sotoodoesthenumberofmanufacturingsteps

andtheintensityofresourceuseperwafer.Getting

themostfromthoseresourcesisfundamentalto

thesustainabilityofourmanufacturingandour

customers’products.

SUSTAINABLE MANUFACTURINGAND OPERATIONS

08

GLOBALFOUNDRIESiscommittedtoeco-efficiency

infoundryoperations.Wedefineeco-efficiency

astheoptimizationofresourcestoyieldproducts

meetingstringentGLOBALFOUNDRIESandcustomer

performanceandqualitycriteria.


Ournewest,mostadvancedmanufacturingfacility,Fab8inMalta,NewYork,strategicallypositionsGLOBALFOUNDRIESasafoundryleaderingloballydistributedcapacity.

Fab8isacornerstoneofupstateNewYork’s“TechValley”regionandisthelargestpublic-privatesectorindustrialinvestmentinNewYorkState’shistory.WithourmanufacturingfacilitiesinEastFishkill,NewYork;Burlington,Vermont;Singapore;andDresden,Germany,GLOBALFOUNDRIES’manufacturingcapabilitiesspanthreecontinents,offeringourcustomersaflexibleandsecurelong-termsupplysourcethatisuniqueinthepureplayfoundryindustry.

ThecurrentcapitalinvestmentfortheFab8campusismorethan$12billion.Themajorityofthisinvestmenthasbeendirectedtowardssupportingtherampofourleading-edge14nmtechnologies.

SincebreakinggroundonFab8in2009,GLOBALFOUNDRIEShascreatedapproximately3,000newjobs.Thesenewjobssupportanadditional15,000indirectjobsintheeconomy,basedonresearchbytheSemiconductorIndustryAssociation.TheFab8projecthasrequiredmorethan6millionmanhourstocompletetodate,andcreatedmorethan20,000newconstructionjobsonsiteandthousandsofadditionallocalconstruction-relatedjobs.

TheFab8campusintegratesgreenbuildingprinciplesandpracticesaspartofthesitedesign,construction,andoperation.Someoftheenergy-efficientfeaturesincludetheuseofhigh-efficiencyequipment,smartcontrols,andinnovativeheatrecoverysystems.OurgoalistoachieveU.S.GreenBuildingCouncil’sLeadershipinEnergyandEnvironmentalDesign(LEED)certificationforseveralprojectsatthecampus.

TheAdmin2buildingachievedLEEDGoldlevelcertificationinApril2014,followedbyAdmin1,whichreceivedLEEDGoldlevelcertificationinJune2015.

Fab8isanidealhomeforGLOBALFOUNDRIES’leading-edgemanufacturingandtechnologydevelopmentactivities.WorkingwithintheJointDevelopmentAllianceinAlbanyandPolytechnicInstituteattheStateUniversityofNewYork(SUNYPoly),combinedwiththegrowingpresenceoftechnologydevelopmentpersonnelontheFab8campus,wehavehelpedmakeNewYork’sTechValleyaglobalcenterfornext-generationtechnologies.

ThesignificanceofGLOBALFOUNDRIES’investment,andbothitsimpactonthelocaleconomyanditsimportancetoadvancedmanufacturingintheU.S.,havebeenrecognizedbyGovernorAndrewCuomoofNewYork,andbyU.S.PresidentBarackObama.

InadditiontooursubstantialcapitalinvestmentintheFab8campusandcreationofdirectjobs,theCapitalRegionhasbenefitedfromanestimatedgrowthofapproximately15,000indirectjobs,plusthe20,000constructionjobspreviouslymentioned.Theregionhasalsobenefitedfromoursupportoflocaleducationthroughnumerousinitiatives.Thefollowingareafewexamplesofthoseprograms:

TechValley Connection for Education and Jobs:Launchedin2012,thisregionalprogramcollectsandbuildsuponinnovativepracticesandideasineducationtohelpensurethatstudentsacquiretheskillsthatbusinessesrequiretobesuccessfulintothefuture.

First Robotics:GLOBALFOUNDRIESishonoredtobeamonganextensivenetworkofcorporations,educationalandprofessionalinstitutions,foundations,andindividualsthatsupportFIRSTroboticsprogramsinNewYork’sTechValleyandtheNortheastTechCorridor.

Aspartofourpartnershipwiththeorganization,GLOBALFOUNDRIEShaspledged$25,000peryearforthenextthreeyears,foratotalof$75,000.InMarch2015,GLOBALFOUNDRIEStookthatcommitmenttothenextlevelandannouncedacollaborativeeffortpledging$500,000overthenextthreeyearstosupporttheNewYorkTechValleyFIRST®RoboticsCompetitionRegionalandSTEMeducationthroughFIRST®programs.

GLOBALGirls:FirstlaunchedasaFab8pilotprogramonMay12,2015,GLOBALGirlsisaGLOBALFOUNDRIESinitiativetoinspireyoungwomenandgirlstopursueaneducationinSTEMandhelpguidethemonapathwaytoarewardingcareerinadvancedmanufacturing.

TechTuesday:LaunchedonSeptember22,2015,TechTuesdayisaneweducationandworkforcedevelopmentinitiativetostrengthenGLOBALFOUNDRIES’engagementwiththecommunity.TechTuesdaycombinesinspiration,education,andinnovationtoofferaglimpseintotheworldofnanotechnology,ourpeople,andthecareerpathwaysavailableatFab8.

AlloftheseinvestmentsandinitiativessupporttherevitalizationoftheupstateNewYorkregion,making“TechValley”amajorhubfortheglobaltechnologyindustry.

Leadershipin

Advanced Manufacturing

08 SUSTAINABLE MANUFACTURING AND OPERATIONS


Quality Management Systems

TheGLOBALFOUNDRIESqualitymanagement

systeminstitutionalizeseffectiveoperating

mechanismstoensurethatourproductsand

servicesmeetorexceedcustomerexpectations.

The“zeroexcursion,zerodefect”mission

guidestheimplementationoftheadvanced

qualitysystemtobecomeourcustomers’

partnerofchoice.

TheGLOBALFOUNDRIESfacilitiesarecertifiedto

internationalqualitystandardsthatvalidatethe

effectivenessofthesysteminsupportofmarket

segmentsincludingautomotive(IATF-16949)and

aerospace(AS9100).Theadvancedqualitysystem

buildsupontheseinternationallyrecognized

standards.Thequalitystandardscodifythe

requirementstoensureproductquality,including

robustnessofthemanagementsystem

andinfrastructure.

GLOBALFOUNDRIESensuresflawlessexecutionof

thedesignanddevelopmentofnewtechnologies

withaphase-gatebusinessprocess.Thisprocess

isutilizedfrominitialexplorationresearchthrough

thefullreleaseofproduction.GLOBALFOUNDRIES

isabletoquicklyreleasenewtechnologiesintothe

marketcorrectlythefirsttimeinalignmentwith

customerrequirements.

Inthequesttocontinuallyimproveour

customers’experiencewhenpartnering

withGLOBALFOUNDRIES,welistentoour

customersandfeedtheirvoicebackintoour

businessprocessesandsystems.Wemanage

customerissuesinourActionEscalationsystem

toensureresponsivefollow-throughwithour

commitments.Wetrackinternal,customer-facing

keyperformanceindicesthatarecloselyaligned

toourcustomers’Quality,Business,Technology,

Fulfillment,andResponsivenesstargets.Finally,we

conductthird-partycustomerrelationshipsurveys

everyyeartoensureourcustomersnoticethe

improvementswe’remaking.

OurQualityvisionistobeourcustomers’partner

ofchoice,andwebelievethatconsistentlycreating

abettercustomerexperienceisthebasisof

achievingourgoals.

Ourqualitymanagementsystemisdescribed

further,includingcopiesofthird-partycertification

certificates,here.

Environmental Management Systems

OurGlobalEHSStandardsformthefoundation

ofintegratedEHSmanagementsystems

employedatourmanufacturingsites.Allofour

manufacturinglocationsarecertifiedtothe

ISO14001environmentalmanagementsystems

standard.Fab9andFab10havealsoaddressed

theproduct-relatedrequirementsoftheISO

14001Standardasanadditionalcertification

scopeandearnedcertificationfortheirproduct

stewardshipprogram.Fab1(Dresden,Germany)

hasputanadditionalfocusonsignificanteffort

intoimprovingthesite’senergymanagement,and

hasestablishedanISO50001-certifiedenergy

managementsystem.

InadditiontoISO14001certifications,allofour

operatingfabshaveeitherbeencertifiedunder

theSonyGreenPartnerprogramormaintain

equivalentcontrolstoensureproductcompliance.

Ourcertificatesareavailablehere.

Ourenvironmentalcommitmentextends

beyondmanufacturingtothelocationanddesign

ofnewfacilities.Wehavedevelopedagreen

buildingstandardforGLOBALFOUNDRIES,

whichrequiresaconstructionsustainabilityplan

fornewconstructionprojects.Amongother

requirements,theplanmustincludetargets

andmeasurestoachievetheLEEDcertification

orcomparable“greenbuilding”standards

appropriatetothelocation.

Fab8,inMalta,NewYork,wasdesignedasa

“greenfab.”Thefabandassociatedadministrative

andsupportbuildingsincludemanyenergyand

waterefficiencyfeatures.WeachievedLEED

GoldLevelcertificationforAdmin1andAdmin2

buildings,andweareintheprocessofcompleting

LEEDcertificationforFab8.1fabricationfacility.





Eco-Efficiency in Foundry Operations

Ourenvironmentalengineerspartnerwith

ourtechnicalexpertsfromtheresearchand

technologydevelopmentphasestointegration

intovolumeproductionatourfabsitesinorder

tooptimizetheeco-efficiencyrelativetoraw

materialuseandwastegeneration.Wealso

workwithequipmentandmaterialsuppliersto

reduceresourceconsumptionandevaluatenew

chemistries.Wesupportaprecautionaryapproach

tothematerialsthatweuseinourprocesses

andcontinuallyseekalternativestohazardous

materialsthatmeetourqualityandperformance

requirements.

Meaningfuldatacollectionandanalysisisthekey

toeco-efficiency,asinallareasofoperational

excellence.WemeasureouroperationalEHS

performanceusingadefinedsetofglobalkey

performanceindicators(KPIs),reflectingresource

consumption,environmentalemissions,waste

generation,occupationalinjuryandillness,and

regulatorycompliance.Formeaningfulcomparison,

wenormalizedatafromoperationswithdiffering

levelsoftechnologycomplexityusinganindustry

standardManufacturingIndex(MI).TheMIis

derivedfromthenumberofwafersmanufactured,

thenumberofmaskingstepsinourfabrication

processes(reflectingprocesscomplexity),andthe

totalareaofwafersproduced.

OurglobalEHSKPIsarecollectedquarterly

fromallofourmanufacturingsites.Thedataare

validatedinternallyandarereviewedbyourglobal

ExecutiveCSRCouncilandreportedtothe

Audit,Risk&ComplianceCommitteeofthe

BoardofDirectors.Inaddition,eachmanufacturing

facilitycollectssite-specificdatathatareused

toidentifyopportunitiesforimprovementand

tomeasureperformanceagainstsite-specific

goals.TheseoperationalEHSKPIsare

reportedtositemanagementandusedfor

cross-sitebenchmarking.

Wehaveredefinedourresourceconservationgoals

toaccommodatethesignificantchangeinour

companystructurein2015withtheacquisitionof

IBM’sMicroelectronicDivision,includingthetwo

manufacturingfacilitiesnowknownasFab9in

Burlington,VT,andFab10inEastFishkill,NY.

Bytheendof2018wewillattainthe

followinggoals:

18 percent reduction of normalized

electricity consumption


water consumption


greenhouse gas emissions.

Wewillusethefirst12monthsofourcombined

operations(July2015-July2016)asthebaseline

tomeasureprogresstowardtheserevised,global

goals.Wehaveestablishedanadditionalgoalto

recycleorreuseatleast55percentofhazardous

wastegeneratedacrossthecompanybythe

endof2016.

Weintendtoachievethesegoalsthrough

dedicatedeffortacrossthecompany’s

manufacturingsitesthatwillreduceconsumption

ofelectricityandwater,greenhousegasemissions,

chemicalconsumption,andgenerationofwaste.

Inaggregate,bytheendof2018,wechallenge

ourselvestoachievethesegoalsand:

Reduce electricity use by 48

gigawatt hours (GWh);

Reduce water use by 3.7 Million

cubic meters (m3);

Reduce GHG emissions by 14,600

metric tons carbon equivalents (MTCE); and

Reduce chemical use and waste generation

by a combined 11,000 tons.

Review of Performance to Date

In2013,GLOBALFOUNDRIESpublisheditsthree-

yearenvironmentalresourceconservationgoalset.

Giventhecompany’srapidrateofchangeandthe

earlystageofdevelopmentofthemassiveFab8

project,thiswasachallengingforecasttomake.

Andasnotedabove,wehaveresetourgoalsto

integrateacquiredoperationsfromIBM.Inthis

section,weareproudtoreportonourprogress

todateaswemoveforwardtoachievethe

2018goalset.



Energy Consumption

Absoluteconsumptionofelectricityincreased

approximately30percentcomparedto2014,

duetocontinuedinstallationofnewprocess

equipmentandtechnologyqualificationinFab8

andtheacquisitionofFabs9and10.Normalized

electricityusagedecreased4percentfrom2011

to2014,andgrewby35percentin2015.We

expectfurtherreductionofthenormalizedrateas

productionvolumesramp,alongwithcontinued

efficiencyimprovements.

Energy Efficiency Highlights

GLOBALFOUNDRIES’fabshaveanumberof

energyefficiencyfeaturesintegratedintotheir

design.Forexample,Fab1ismainlypowered

bytwospeciallydesigned,highlyefficient

trigenerationplants,withasmallerfractionof

electricityfromtheDresdenpublicgrid.Energy

CentersIandII(EVCIandEVCII)burnnaturalgas

tosupplyFab1withelectricity.Wasteheatfrom

electricityproductionintheEVCs’trigeneration

systemsprovidesheatingandcoolingenergyto

themanufacturingareas.Asaresult,trigeneration

ismuchmoreefficientthanconventionalcoalor

naturalgaspowerplants,whichtypicallyhave

efficiencieslowerthan40percent.Incomparison,

EVCIhasachievedatotalaveragelifetime

efficiencyofapproximately73percent.In2015,

theplantachievedanaveragetotalefficiency

ofmorethan74percent.EVCIIhasachieveda

totalaveragelifetimeefficiencyofmorethan84

percent,andin2015achievedanaveragetotal

efficiencyofmorethan88percent.

Weintegratednumerousenergy-efficientfeatures

intothedesignandconstructionofFab8in

NewYork.Thesefeaturesareestimatedtosave

approximately16GWhannually.Someofthe

featuresinclude:

High-efficiencymotors,chillers,boilers,fan

filtersforthecleanroom,andvacuumpumps.

Aninnovativesystemthatusesheatrecovery

chillerstomeetthefab’syear-roundbasecooling

loadandrecovertheheatforsiteneedsinstead

ofremovingitwithcoolingtowers.Thesystem

meets40percentofthesite’sheatingloadwith

recoveredheat.

Afab-wide“GreenMode”strategyforpoint-

of-useabatementsystemsandforasignificant

portionoftheinstalledbaseofvacuumpumps.

GreenModeusessmartcontrolsthatplacefab

supportequipmentintoanidlemodethatlowers

powerandnaturalgasconsumptionduring

periodsofinactivity.Thisstrategyisinthe

processofbeingimplemented.

AllGLOBALFOUNDRIESsitesactivelypursue

projectstoincreaseenergyefficiency.In2014and

2015,ourprojectlistincludedthefollowing:

Dresden Fab 1 Process Cooling Water Pump

Optimization.Thisenabledthesitetoreducethe

numberofPCWsystempumpsandhelpstosave

morethan900MWhperyear.

Singapore Woodlands Campus High Efficiency

Vacuum Pump Conversion (multi-year project).

Conversiontovariablespeeddrivesresulted

inelectricitysavingsofmorethan3.4GWh

peryear.

Singapore Woodlands Campus High Efficiency

Chiller Retrofit (multi-year project).Thesite-

wideretrofitprogramisprojectedtosave54

GWhannually.

Singapore Tool-Specific Chiller Retrofit.

Connectionofaspecificgroupofprocesstools

tothemoreefficientsiteprocesscoolingwater

systemachievedsavingsof3GWhin2015.


ABSOLUTEELECTRICITYCONSUMPTION

NORMALIZEDELECTRICITYCONSUMPTION

FIGURE 3 AbsoluteAndNormalizedElectricityUsage

GW

h

kW

h/

MI

3,000

2,000

2,500

1,000

1,500

0

500

2011 2012 2013 2014 2015*

0.00

0.02

0.01

0.03

0.05

0.06

0.07

0.04





Singapore Woodlands Campus Installation of

Energy Reduction Modules. Reductionofnon-

processdrypumpelectricalpowerconsumption

realizedannualsavingsofmorethan3.7GWh

since2014.

Fab 9 Burlington Chiller Conversions and

Upgrades. Threechiller-relatedprojects,including

theconversionofaspecifictoolsettooperate

onthesiteprocesscoolingwatersystemandan

upgradetothesite’schilledwatersystem,saved

morethan7.6GWhoverathreeyearperiod.

Fab 8 Malta Process Exhaust Load Reduction.

Acombinationofefficiencyimprovements,

includingreductioninprocessexhaustloads,

HVACoptimization,andimplementationof

economizermodes,reducedpowerconsumption

bymorethan20GWhin2015.

In2014,GLOBALFOUNDRIESSingapore

receivedthe“SingaporeStandardSS

564GreenDataCentres”certificationby

theInfocommDevelopmentAuthorityof

Singaporeforanewdatacenterestablished

inJuly2013.

InJune2015,GLOBALFOUNDRIESDresden

wascertifiedtotheISO50001energy

managementsystemstandardbyGUTcert.

In2014and2015,GLOBALFOUNDRIESMalta

achievedLEEDGoldLevelCertificationforthe

twoadministrativebuildingsonthecampus.

(Certificationofthefabispending.)

In2016,GLOBALFOUNDRIESBurlington

receivedtheVermontGovernor’sAwardfor

EnvironmentalExcellenceforcompletinga

chiller-relatedenergyconservationproject

thathelpedtosavemorethan7.6GWhover

aperiodofthreeyears.

AjointprojectbyGLOBALFOUNDRIES

SingaporeandEdwardsTechnologies

Singaporeforcombustionchamber

replacementabatementunitsreceived

HonourableMentionintheBestPractices

categoryattheSingaporeEENPAwards

2016.Theprojectinvolvedaredesignof

theexistingabatementunitstoreduceLPG

consumptionby31percentwhilemaintaining

abatementdestructionefficiencyatthe

samelevel.

GLOBALFOUNDRIES EnergyConservation

GLOBALFOUNDRIESFab9ChillerEnergyConservationProjectTeamReceives2016VermontGovernor’sAwardfor

EnvironmentalExcellencefromDeborahMarkowitz,theSecretaryoftheVermontAgencyofNaturalResources


WATER USE

GLOBALFOUNDRIESuseswaterfrommunicipal

sourcesatallofourmanufacturingfacilities.

Morethan95percentofthewaterconsumedat

GLOBALFOUNDRIESSingaporeisNEWater,which

isreclaimedandtreatedwastewatersupplied

bytheSingaporePublicUtilitiesBoard.Using

NEWatersupportsSingapore’swaterconservation

strategytoreservehigh-qualitypotablewaterfor

domesticconsumption.

FIGURE 4showsabsoluteandnormalizedwater

consumptionatourmanufacturingfacilitiesfrom

2011to2015.ThestartupofFab8,production

growthatFab1inDresden,andtheadditionof

Fab9andFab10in2015resultedinan81percent

increaseinabsolutewaterusefrom2011to2015,

whilenormalizedwaterusegrewatmoremoderate

rates(37percent)from2011to2015.

Wehaveextensivewaterreuseandrecycling

programsatourmanufacturingfacilities.In2015,

weachievedacombinedcorporatewaterreclaim

rateof55percentascomparedtoincomingwater

supply.“Reclaim”includesbothwaterrecycling

andreuse.Somereclaimedwaterisusedasa

rawwatersupplytoourultra-purewater(UPW)

plants(definedas“recycling”)aswellasforfacility

operationssuchascoolingtowersandscrubbers

(definedas“reuse”).In2015,theaveragewater

recyclingrateacrossourfabsiteswas38percent

comparedtoincomingwater.

OurSingaporefabs,whichoperateintheregion

withthehighestwaterconstraints,achieveda

57percentrecyclingratein2015ascomparedto

incomingwater.In2016,ourSingaporesitefurther

enhanceditsconservationeffortsbycompleting

constructionofanewwatertreatmentand

reclamationfacilityatourWoodlandscampus.

Thestate-of-the-artfacilityfeaturesadvanced

technologythatisdesignedtoreducewaste

sludgeandenablethereuseoftreatedwastewater

asincoming“feed”water,therebyfurtherreducing

theoverallrawwaterconsumption.Thefacilityis

alsoprojectedtouselesschemicalsandenergy

duringthetreatmentprocess.

Weoperatepermittedwastewatertreatment

systemsateachofourmanufacturingsitesto

manageeffluentfromproductionareas.These

facilitiestreatthewastewatertomeetregulatory

requirementspriortodischargetomunicipal

treatmentfacilitiesordirectlytosurfacewaters

atFabs9and10.Thedirectdischargesfollowa

rigorouscombinationofindustrialandbiological

treatmentprocesses.In2015,wedischarged20.9

millioncubicmetersoftreatedwastewater.

MATERIAL USE

Awiderangeofresources,includingenergy,water,

chemicals,andgases,isneededtomanufacture

semiconductors.Chemicalandgasusageranges

frombulkgasesandchemicalstospecialtygases

andchemicalsusedinsmalleramounts.Inaddition,

chemicalsareneededtoproduceultra-purewater

andtreatwastewaterandexhaust.

Ahigh-volumesemiconductorfabmayuse

morethan100,000tonsofmaterialsperyear.

High-puritybulkgases(oxygen,nitrogen,

helium,andothers)representthelargestshare,

followedbyprocesschemicals.Theseinclude

sulfuricacid,hydrogenperoxide,specialty

chemicalslikephotoresistsanddevelopers

usedinphotolithographyorslurriesforthe

chemical-mechanicalplanarization(CMP)process,

andchemicalsusedinwaterpurificationand

treatment.Specialtygasesusedinchemicalvapor

deposition(CVD)andplasmaetchingprocesses

constitutearelativelysmallamount(lessthanone

percentofthetotal).


FIGURE 4 AbsoluteAndNormalizedWaterUse

ABSOLUTEWATERCONSUMPTION

NORMALIZEDWATERCONSUMPTION

2011 2012 2013 2014 2015*

0

10,000

5,000

15,000

25,000

20,000

30,000

0.00

0.20

0.10

0.30

0.50

0.40

0.60

Th

ou

sa

nd

m3

Lit

er

/ M

I




GREENHOUSE GAS EMISSIONS FIGURE 5showsabsoluteandnormalizeddirect

(Scope1)andindirect(Scope2)greenhousegas

(GHG)emissionsfor2011through2015.Absolute

direct(Scope1)GHGemissionsincreasedby38

percentfrom2011to2015,primarilyasaresultof

theproductionrampofFab8,productionincreases

inFab1andSingapore,andtheadditionofFabs9

and10in2015.Indirect(Scope2)GHGemissions

increased14percentin2015comparedto2011for

thesamereasons.

ContrarytothegrowthinabsoluteGHGemissions,

normalizedGHGemissionscontinuedtodecrease.

2015normalizedemissionswere3percentlowerthan

2011,largelyduetotheexpansionofwaferproduction

inthefabsthatweredesignedtoproducelower

greenhousegasemissions,suchasemissionsofPFC

(perfluorocompound)gasesusedinsemiconductor

manufacturingprocesseslikewaferetchingandCVD

chambercleaning.


FIGURE 5 AbsoluteAndNormalizedGHGEmissions

2011 2012 2013 2014 2015*

0

400,000

200,000

600,000

300,000

100,000

500,000

700,000

800,000

0

8

4

12

6

2

10

14

16

MT

CE

Gra

ms

CE

/ M

I Globalclimatechangeisanincreasinglyimportantchallenge

impactingsocietyandtheglobaleconomy.Aspresented

inthisreport,wemonitorourenergyconsumptionand

GHGemissionstounderstandourclimateimpacts.We

manageourclimate-relatedbusinessrisksthroughenergy

conservation,operationalcontrols,andparticipationin

initiativestodriveindustry-wideimprovements.

Risksassociatedwithclimatechangearecomplex,ranging

fromregulatoryinitiativestosevereweathereventssuch

asdroughts,flooding,andextremetemperatures.Climate-

relatedrisks,includingsupplyoroperationaldisruptions

duetosevereweatherevents,areevaluatedaspartofour

riskmanagementprocess.Wetrackthedevelopmentof

proposedclimatelegislationaroundtheworldandhave

implementedproactivemeasuresthatgowellbeyond

regulatoryrequirements.

Wearealsoactiveinindustry-wideinitiativesthatdrive

reductionsinGHGemissions.Fab1inDresdenisoneof

thelargestfabsinEurope,andyetitproducesverylow

levelsofPFCemissions.Fabs1,9,and10participatedinthe

industry-widegoalestablishedbytheWorldSemiconductor

Council(WSC)toreducePFCemissions10percentby2010

comparedto1995.In2011,theWSChadfarsurpassedits

goal,havingachieveda32percentreduction.

In2011,theWSCannouncedanewvoluntaryPFCagreement

for2020.Theelementsofthe2020goalarerootedinthe

implementationofbestpracticesfornewsemiconductor

fabs.Thesemiconductorindustryexpectsthatthe

implementationofbestpracticesinnewsemiconductorfabs

willresultina30percentreductionofnormalizedemission

rate(NER)fromtheWSC2010aggregatedNERbaseline.

Bestpracticeswillbecontinuouslyreviewedandupdatedby

theWSC.Ournewestfab,Fab8inNewYork,wasdesigned

tomeettheWSCcommitment.

Managing ClimateChange Impacts

SCOPE2GHGEMISSIONS

SCOPE1GHGEMISSIONS

NORMALIZEDGHGEMISSIONS

2011 2012 2013 2014 2015*

0 0

1

2

3

4

5

6

7

8

9

10

100,000

50,000

150,000

250,000

200,000

300,000

MT

CE

Gra

ms

CE

/ M

I

FIGURE 6 AbsoluteAndNormalizedPFCEmissions

ABSOLUTEPFCEMISSIONS NORMALIZEDPFCEMISSIONS

FIGURE 6showsourabsoluteandnormalized

totalPFCemissionsfrom2011to2015.Absolute

PFCemissionsincreasedby7percentin2015

comparedto2011,whilenormalizedPFCemissions

decreased18percent.Thesedecreasesaredue

toincreasedutilizationoffabswithlowerPFC

emissions,suchasFab1inDresden.Fab8in

NewYorkwasalsodesignedforextremelylow

emissionsofPFCs.Thesefabsuselow-emission

gasesinCVDchambercleaning,coupledwith

near-universaluseofpoint-of-useabatement

equipmentforPFC-usingprocesses.


acquiredasofJuly1,2015. *2015totalsincludesecond-halfdataonlyforFabs9&10



AIR EMISSIONS

Allofourmanufacturingfacilitiesoperate

withinconditionspermittedbylocalregulatory

agencies.Theprimaryairemissionsfromour

wafermanufacturingfacilitiesincludecorrosives

(acidsandbases)andvolatileorganic

compounds(VOCs).

Weemploywetscrubberstoneutralizecorrosive

emissionsandtreatthescrubberwaterin

on-sitewastewatertreatmentsystemspriorto

discharge.Basedonairemissionmeasurements

thatweconductateachfab,wehaveestimated

our2015fabs’combinedcorrosiveemissionsat

approximately124,300kg.

ForVOCemissionsreduction,mostsitesuse

thermaloxidationorcarbonbedadsorbers.Fab1

inDresden,Fab8inMalta,NY,andFab10inEast

Fishkill,NY,havecontroltechnologythatutilizes

rotaryconcentratorsfollowedbythermaloxidation.

Thistechnologyuseshighlyadsorbentzeolite

materialstocaptureVOCs,whicharesubsequently

desorbed,producingalow-volumeexhauststream

withahigherconcentrationofVOCs.Thismore

concentratedexhauststreamisthentreatedwith

greaterefficiencythroughacombustionprocess

thatdestroysasmuchas98percentoftheVOCs.

HAZARDOUS WASTE

FIGURE 7showsabsoluteandnormalized

hazardouswastegenerationfor2011to2015.

Theclassificationofwasteas“hazardous”is

dictatedbytheregulationsthatapplytoeach

ofourmanufacturingsites.Absolutehazardous

wastegenerationincreasedbyapproximately66

percentfrom2011to2015,withanintermediate

peakin2014,whilenormalizedhazardouswaste

volumesincreasedby58percentduringthesame

timeperiod,alsowithahigherrateobserved

during2014.

Whilewehavesignificantlyincreasedour

manufacturingcapacityoverthistimeperiod,the

riseinabsoluteandnormalizedhazardouswaste

generationisalsoduetotheincreasedcomplexity

associatedwithmanufacturingintegratedcircuits

atmoreadvancedtechnologynodes.Thenumber

ofwafercleaningstepscontinuestogrow,due

tosmallerfeaturedimensionsandthefactthat

constructingthesecomplexcircuitsrequires

technologiesthatinvolvehundredsofindividual

processsteps.Morecleaningstepsrequirean

increaseduseofUPWandcleaningchemicalssuch

assulfuricacid.Weareactivelyinvestigatingways

toreducewaterandchemicalusetoultimately

reducehazardouswaste.

FIGURE 8showsabreakdownofthedisposal

methodsforthehazardouswastegeneratedin

2015.Wealsoincludethecategory“byproducts

beneficiallyrecycledandreused”because

reclaimedmaterialisexcludedfromthedefinition

ofhazardouswaste.Thiscategoryisapplicable

onlytoU.S.sites.Approximately59percentof

totalhazardouswaste(includingbyproducts

beneficiallyrecycledandreused)generatedin

2015wasrecycledorreused.Withthat,wemet

our2015goaltoachievearecycleandreuserate

ofmorethan55percent.


FIGURE 7 AbsoluteAndNormalizedHazardousWasteGeneration

To

ns

2011 2012 2013 2014 2015*

0 0.0

0.2

0.4

0.6

0.8

1.0

1.2

20,000

10,000

30,000

50,000

40,000

15,000

5,000

25,000

45,000

35,000

Gra

ms

/M

I

BENEFICIALLYRECYCLED/

REUSEDBYPRODUCTS(U.S.FABS

ONLY—CATEGORYISEXCLUDED

FROMU.S.DEFINITIONOF

HAZARDOUSWASTE)

ABSOLUTE HAZARDOUSWASTEGENERATION

NORMALIZED HAZARDOUSWASTEGENERATION

FIGURE 8 2015*DisposalMethodsForHazardousWasteAndBeneficiallyRecycledAndReusedByproducts

BurnedforFuelRecoveryOff-Site

5%

22%

7%

7%

20%

39%RecycledorReused

TreatedOff-Site

IncinerationOff-Site

LandfilledOff-Site

BeneficiallyRecycledandReused






NON-HAZARDOUS WASTE GENERATION

FIGURE 9showsabsoluteandnormalized

non-hazardouswastegenerationfor2011to2015.

ThestartupofFab8in2012isthemainfactor

causingabsolutenon-hazardouswastegeneration

tomorethandoublefrom2011to2014.Thetwo

manufacturingsitesaddedin2015contributed

tothemorethanthreefoldincreaseinabsolute

non-hazardouswastegenerationfrom2011to2015.

Normalizednon-hazardouswastegeneration

grewbyafactorofmorethantwobetween

2011and2015.

FIGURE 10showsthebreakdownofthedisposal

methodsfornon-hazardouswastegeneratedin

2015.Approximately36percentofnon-hazardous

wastegeneratedbyGLOBALFOUNDRIESin2015

wasrecycledorreused.

EHS COMPLIANCE

ThroughourglobalEnvironmental,Health&

Safetypolicy,wearecommittedtoa“Beyond

Compliance”approach,seekingtoexceedthe

requirementsofapplicableregulations.We

implementconsistentandrigorousEHSstandards,

managementsystems,metrics,externalreporting,

andcomplianceassuranceprograms.

Thesearedesignedtoprotecttheenvironment;

toprotectthesafety,health,andwell-beingof

ouremployees,contractors,andcommunities;

andtoensurethatwemeetorexceedregulatory

compliancerequirements.Ourmanufacturing

sitesperforminternalreviewsaspartoftheirEHS

ManagementSystemsandareroutinelyinspected

byregulatoryauthorities.

In2014andin2015,inspectionsandregular

compliancereportingacrossourgloballocations

resultedinthreenoticesofviolation(NOV)in

2014andeightin2015.Allissueswerecorrected

tothesatisfactionoftherespectiveregulatory

authorities.OftheseNOVs,four(onein2014

andthreein2015)relatedtoexceedancesof

Singaporeanwastewaterdischargestandardsand

resultedinde minimisfinancialpenaltiesranging

from$760USDto$3800USD.


FIGURE 10 2015*DisposalMethodsForNon-HazardousWaste

IncineratedOff-Site6%9%

36%

49%LandfilledOff-Site

TreatedOff-Site

RecycledorReused

ABSOLUTENON-HAZARDOUSWASTEGENERATION

NORMALIZEDNON-HAZARDOUSWASTEGENERATION

FIGURE 9 AbsoluteAndNormalizedNon-HazardousWasteGeneration

2011 2012 2013 2014 2015*

0

20,000

10,000

15,000

5,000

25,000

To

ns

Gra

ms

/M

I

0.00

0.10

0.20

0.30

0.40

0.50

0.60






PRODUCT STEWARDSHIP

09

Materials Management and Product Compliance

AllGLOBALFOUNDRIESsiteshavechemicalreviewandapprovalsystemsin

placetoensurethatonlyapprovedmaterialsarebroughtonsiteforusein

manufacturing.Ourmaterialqualificationprocessassessesmaterialsrelative

toGLOBALFOUNDRIES’SpecificationforBanned,Restricted,andDeclarable

MaterialsManagement,whichincludesbothregulatoryandcustomer-driven

requirements.ApplicableregulatoryrequirementsincludetheEUDirectiveon

restrictionoftheuseofcertainhazardoussubstancesinelectricalandelectronic

equipment(RoHSDirective),andsubstancesregulatedundertheEUREACH

Directive,suchasdesignatedSubstancesofVeryHighConcern(SVHCs).

Ourspecificationsrequirepackingmaterialsupplierstomeetapplicable

substancerestrictions.Inaddition,GLOBALFOUNDRIESrequiresthatpaper-

basedshippingmaterialscontainmorethan50percentrecycledcontent,andany

remainingcontentispreferablysourcedfromsustainablymanagedforests.

GLOBALFOUNDRIEShasprogramsinplacetoobtainanalyticalevidence

ofproductcompliance(suchasRoHSandhalogen-freerequirements)and

makesproductcompliancedocumentationavailabletocustomersonGlobal-

FoundryView,ourcustomerportal.

Itisourresponsibilitytoreducethe

potentialhealth,safety,environmental,and

socialimpactsoftheproductlife-cycle

stagesunderourcontrol.Withourbroad

rangeoftechnologiesandmanufacturing

expertise,wehelpourcustomersreduce

theirenvironmentalfootprint,cutenergy

costs,andremaincompetitiveinthemarket.


09 PRODUCT STEWARDSHIP

Enabling Energy Efficiency

Semiconductorsareakeyenablingtechnology

toimproveenergyefficiencyandreduceenergy

consumptioninavarietyofproductsandprocesses

thattouchourlivesdaily.Fromimprovingthe

efficiencyofthecarswedrivetothetechnologies

weuseinourhomesandoffices,semiconductors

helpreducetheamountofenergyweconsume.

GLOBALFOUNDRIESoffersaportfolioof

manufacturingtechnologiesthatenableour

customerstodesignmoreenergy-efficient

products.Smaller,faster,andmorepower-efficient

transistorsarethebuildingblocksforimproving

futureperformanceandpowerconsumptionin

endproducts.

Ourleading-edgemanufacturingtechnologies

makepossibleshrinkingtransistors,lowerpower

consumption,andlowerleakagecurrents,

particularlyformobiledevices.Wehaveintegrated

leading-edgewafertechnologycapabilitiesinto

manufacturingprocessesthatenableenergy

efficiencygains,suchasFullyDepletedSiliconon

Insulator(FDSOI),High-kMetalGate(HKMG),

StrainedSilicon,andFin-ShapedFieldEffect

Transistors(FinFETtransistors)—lowering

powerrequirementsfortheendproducts

inwhichthechipsareused.

FD-SOI Technology—Fully Depleted Silicon on Insulator Technology FD-SOItechnologyisaplanarprocessthatleverages

existingmanufacturingmethodstodeliverreduced

silicongeometries,improvedperformance,andlow

powerconsumption.

Twokeyinnovationsarecombined,synergistically,to

createtheFD-SOIprocess.Thefirstistheuseofan

ultra-thinoxideinsulatorplacedontopofthebase

silicon.Second,averythinsiliconlayercreatesthe

transistorchannel.Duetothethinnessofthislayer,

nochanneldopingisrequired,makingthetransistor

“fully-depleted”.TheFD-SOIstructureresultsin

muchbettertransistorcharacteristicscomparedto

traditionalbulkCMOStechnology,reducingleakage

currentandparasiticcapacitance,thusmakingthe

transistormoreenergy-efficient.

FinFETs (Fin-Shaped Field Effect Transistors) Historically,transistorshavebeentwo-dimensional

featuresinanintegratedcircuit.FinFETsarethree-

dimensionaltransistorsthathavetheintrinsiccapability

tooperateatalowervoltage,whichtranslatesto

improvedenergyefficiencyandlongerbatterylife.This

isahighlydesiredtechnologyforperformance-hungry

mobilecomputingapplications.

HKMG—High-k Metal Gate Onecriticalmaterialssystemthathasbeenintroduced

inleading-edgemanufacturingtechnologiesis

High-kMetalGate(HKMG).Thissystemmakesupthe

fundamentalswitchingelementofatransistor.HKMG

technologyallowsthesizeoftransistorstoshrink

whilesignificantlyminimizingleakagecurrent,akey

factorinreducingpowerconsumption.

Strained Silicon Strainedsiliconisasubstrateinwhichtheatoms

inthetoplayerarestretchedbeyondtheatomsof

theunderlyingsemiconductorcrystallinelayers.The

so-calledstrainedsiliconenablesenhancedtransport

propertiesoftheelectricalchargecarriersinthe

transistor.Thesecarrierscantransportelectricity

morequicklythroughthetransistor,leadingtobetter

chipperformanceandlowerenergyconsumption.

Thesepower-savingwafertechnologyelements

areappliedinanumberoftechnologyplatforms

atGLOBALFOUNDRIES,suchas:

GLOBALFOUNDRIES’ 7nm and 14nm FinFET technology platformsInSeptember2016,GLOBALFOUNDRIESannounced

planstodeliveranewleading-edge7nmFinFET

semiconductortechnologythatwilloffertheultimate

inperformanceforthenexteraofcomputing

applications.Buildingonthesuccessofits14nm

FinFETtechnologyplatform,GLOBALFOUNDRIES’

7nmFinFETtechnologyispositionedtoenable

next-generationcomputingapplicationsthatdemand

ultra-high-performanceandincreasedenergy

efficiency,evencomparedto14nmFinFETtechnology.

GLOBALFOUNDRIES’14nmFinFETtechnology

platform,oneofthemostadvancedintheindustry,

isidealforthemostdemandinghigh-volume,

high-performance,andpower-efficientSystemon

Chip(SoC)designs.Theplatformtapsthebenefits

ofthree-dimensional,fully-depletedFinFETtransistors

toovercomethelimitationsofplanartransistor

technology.The14nmFinFETdevicesofferthe

perfectanswertogrowingmarketneeds,with

intrinsicperformanceboostover28nmand20nm

devicesandasuperiorpowerfootprintcompared

toanypredecessors.

Leading-edgewafertechnologyelements enabling energy efficiency gains


GLOBALFOUNDRIES’22FDX™ and 12FDX™ technologies

Thecompany’s22FDXand12FDXtechnologieshavebeendeveloped

tomeettheultra-low-powerrequirementsofthenextgenerationof

intelligentconnecteddevices,frommobilecomputingand5Gconnectivity

toartificialintelligenceandautonomousvehicleapplications.

GLOBALFOUNDRIES’22FDXplatformdeliversFinFET-likeperformance

andenergy-efficiencyatacostcomparableto28nmplanartechnologies,

leveragingtheindustry’sfirst22nmtwo-dimensional,FD-SOItechnology.

Ournext-generation12FDXplatform,announcedinSeptember2016,builds

onthesuccessofour22FDXoffering.Astheworldbecomesincreasingly

integratedthroughbillionsofconnecteddevices,manyemerging

applicationsdemandanewapproachtosemiconductorinnovation.The

chipsthatmaketheseapplicationspossibleareevolvingintomini-systems,

withincreasedintegrationofintelligentcomponentsincludingwireless

connectivity,non-volatilememory,andpowermanagement—allwhile

drivingultra-lowpowerconsumption.GLOBALFOUNDRIES’new12FDX

technologyisspecificallyarchitectedtodelivertheseunprecedentedlevels

ofsystemintegration,designflexibility,andpowerscaling.

Ourfocusontechnologiesthatenableenergyefficiencyextendsbeyond

theleading-edgetechnologynodes.Wealsooffersemiconductorservices

forpower-managementintegratedcircuits(PMICs)andpowerconverters.

Ourgrowingportfolioiscontinuouslyexpandingforhighervoltages.

GLOBALFOUNDRIEShasdevelopedauniqueversionofBiCMOS/DMOS

namedBCDlite™,whichhasbecomeoneofthekeytechnologyplatforms

forcost-effectivepowermanagementandpowerconvertersolutions.

Thistechnologyplatformofferstremendousdesignflexibilityforpower

managementandhigh-voltageanalogcircuits.


RutgerWijburg,SeniorVicePresidentandGeneralManager,Fab1,withDresdensiteemployees.


Integrating EHS with Research & Development

GLOBALFOUNDRIESisdrivingadvancementsinsemiconductortechnology

thatchallengethecurrentlimitsofmanufacturingandmaterialsdevelopment.

Keepingpacewithleading-edgetechnologiesrequiressubstantialinvestments

inresearchanddevelopment.Addressingtheenvironmental,healthandsafety

aspectsofnewmaterialsandprocessesisakeyrequirementforsuccessful

technologyinnovation.

GLOBALFOUNDRIES’professionalsplayaleadingroleinsettingindustry

strategyforEHSresearchanddevelopment.Formanyyears,weandour

industrypeershavesupportedEHSR&DworkattheSemiconductorResearch

Corporation’s(SRC)EngineeringResearchCenterforEnvironmentallyBenign

SemiconductorManufacturing,andotherR&Dconsortia,includingIMEC

andSEMATECH.ThroughtheSRC,weco-fundfundamentalEHSresearchat

leadingacademicinstitutions,suchastheUniversityofCalifornia,LosAngeles;

UniversityofArizona;UniversityofTexas;andArizonaStateUniversity.We

alsodirectlyparticipateinfundamentalresearch,forexample,partneringas

co-PrincipalInvestigatorswithprofessorsattheUniversityofArizonaand

ArizonaStateUniversityinaNationalScienceFoundation–fundedprojectto

characterizetheEHSpropertiesofnovelsemiconductormaterials.

Inaddition,wehaveinitiatedaprograminwhichprofessorscanspenda

sabbaticalperiodwithus.Thisopportunityprovidesacademicswithdirect

insightintoresearchneedsandtechnicalchallengesfacedbyourindustry.It

alsoprovidesGLOBALFOUNDRIES’engineerswithdirectaccesstouniversity

expertise,providinganopportunitytoincreasetheirtechnicalskills.Theintent

oftheseandourotherEHSresearcheffortsistoassurethattheintroduction

ofnewmaterialsandprocessesintosemiconductormanufacturingprocessesis

conductedinasafeandenvironmentallyresponsiblemanner.

Ourparticipationinindustryresearchconsortiaallowsustopoolresources

withotherleadingmanufacturerstoevaluatetheEHSaspectsofnewmaterials

atapre-competitivestage.Thisprovidesuswithessentialinformationaswe

bringnewmaterialsandprocessesthroughourdevelopmentprocess,andhelps

ensurethatEHScriteriaareaddressedallthewayfromexploratoryresearch

throughreleasetohigh-volumemanufacturing.



The GLOBALFOUNDRIES 2016 Corporate Responsibility Report is our second comprehensive

sustainability report. GLOBALFOUNDRIES’ first Corporate Responsibility Report was published in 2014

and presented data from 2010 through 2013. That report fulfilled the promise made in our 2009 founding

commitment, Forging a New Path on Sustainable Business Practices. We continue our path forward with

this second report, using the Global Reporting Initiative (GRI) G4 Sustainability Reporting Guidelines,

and self-declare the report to be prepared in accordance with the GRI G4 “Core” level.

Operational data presented in this report reflect calendar years 2014 and 2015. The data were

compiled from facilities owned or operated by GLOBALFOUNDRIES during the reporting period

and were validated using our internal processes.

A significant change in our company structure occurred in July 2015—the acquisition of IBM’s

Microelectronic Division, including two manufacturing facilities, now designated GLOBALFOUNDRIES

Fab 9 in Burlington, Vermont, and Fab 10 in East Fishkill, New York. Data for the second half of 2015 for

these two facilities are included in the reporting scope. Where practical, the data are measured directly

or obtained from external sources, such as utility providers.

We value and encourage your feedback on this report.

Please send comments or questions to [email protected].

10 ABOUT THIS REPORT


11 GRI CONTENT INDEX

GLOBALFOUNDRIESreviewed the disclosures in this report relative to the GRI G4 guidelines.

Please refer to the Index table below, which indicates how our disclosures address the GRI guidelines.

PROFILE DISCLOSURE

DESCRIPTION REPORTED CROSS-REFERENCE EXPLANATORY COMMENT

STANDARD DISCLOSURES PART I: PROFILE DISCLOSURES

STRATEGY AND ANALYSIS

G4-3 Reportthenameoftheorganization. CompanyProfile

G4-4 Reporttheprimarybrands,products,andservices. CompanyProfile

G4-5 Reportthelocationoftheorganization’sheadquarters. CompanyProfile

G4-6 Reportthenumberofcountrieswheretheorganizationoperates,and namesofcountrieswhereeithertheorganizationhassignificant CompanyProfile operationsorthatarespecificallyrelevanttothesustainabilitytopics coveredinthereport.

G4-7 Reportthenatureofownershipandlegalform. CompanyProfile

G4-8 Reportthemarketsserved(includinggeographicbreakdown,sectors CompanyProfile served,andtypesofcustomersandbeneficiaries).

G4-9 Reportthescaleoftheorganization. CompanyProfile

G4-10 Reportthetotalnumberofemployeesbycategory. CompanyProfileG4-11 Reportthepercentageoftotalemployeescoveredbycollective bargainingagreements. –

G4-1 Provideastatementfromthemostseniordecision-makerofthe organization(suchasCEO,chair,orequivalentseniorposition)about CEOStatement therelevanceofsustainabilitytotheorganizationandtheorganization’s strategyforaddressingsustainability.

ORGANIZATIONAL PROFILE

FULLY DISCLOSED PARTIALLY DISCLOSED NOT DISCLOSED

Wereportthetotalnumberofemployeesbyregionandgender.

None


G4-12 Describetheorganization’ssupplychain. Supplier Responsibility

G4-13 Reportanysignificantchangesduringthereportingperiodregarding CompanyProfile theorganization’ssize,structure,ownership,oritssupplychain.

G4-14 Reportwhetherandhowtheprecautionaryapproachorprincipleis Governance addressedbytheorganization.

G4-15 Listexternallydevelopedeconomic,environmental,andsocialcharters, Stakeholder principles,orotherinitiativestowhichtheorganizationsubscribesor Engagement whichitendorses.

G4-16 Listmembershipsofassociations(suchasindustryassociations) Stakeholder andnationalorinternationaladvocacyorganizations. Engagement

G4-17 Listallentitiesincludedintheorganization’sconsolidatedfinancial – statementsorequivalentdocuments.

G4-18 Explaintheprocessfordefiningthereportcontentandthe Stakeholder AspectBoundaries. Engagement

G4-19 ListallthematerialAspectsidentifiedintheprocessfordefining Stakeholder reportcontent. Engagement

G4-20 ForeachmaterialAspect,reporttheAspectBoundarywithin Stakeholder theorganization. Engagement

11 GRI CONTENT INDEX FULLY DISCLOSED PARTIALLY DISCLOSED NOT DISCLOSED

PROFILE DISCLOSURE DESCRIPTION REPORTED CROSS-REFERENCE EXPLANATORY COMMENT

ORGANIZATIONAL PROFILE (CONTINUED)

Asignificantchangeinourcompanystructureoccurredin2015—theacquisitionofIBM’sMicroelectronicDivision,includingtwomanufacturingfacilities,nowdesignatedGLOBALFOUNDRIESFab9inBurlington,VT,andFab10inEastFishkill,NY.

IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES



G4-21 ForeachmaterialAspect,reporttheAspectBoundaryoutside Stakeholder theorganization. Engagement

G4-22 Reporttheeffectofanyrestatementsofinformationprovided – inpreviousreports,andthereasonsforsuchrestatements.

G4-23 Reportsignificantchangesfrompreviousreportingperiodsin CompanyProfile; theScopeandAspectBoundaries. AboutthisReport

G4-24 Providealistofstakeholdergroupsengagedbytheorganization. Stakeholder Engagement

G4-25 Reportthebasisforidentificationandselectionofstakeholderswith Stakeholder whomtoengage. Engagement

G4-26 Reporttheorganization’sapproachtostakeholderengagement. Stakeholder EngagementG4-27 Reportkeytopicsandconcernsthathavebeenraisedthrough Stakeholder stakeholderengagement,andhowtheorganizationhas Engagement respondedtothosekeytopicsandconcerns.


IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES (CONTINUED)

Asignificantchangeinourcompanystructureoccurredin2015—theacquisitionofIBM’sMicroelectronicDivision,includingtwomanufacturingfacilities,nowdesignatedGLOBALFOUNDRIESFab9inBurlington,VT,andFab10inEastFishkill,NY.H22015dataforthesetwofacilitiesareincludedinthereportingscope.

None

STAKEHOLDER ENGAGEMENT



G4-28 Reportingperiod. AboutthisReport

G4-29 Dateofmostrecentpreviousreport. AboutthisReport

G4-30 Reportingcycle(suchasannual,biennial). AboutthisReport

G4-31 Providethecontactpointforquestionsregardingthereportoritscontents. AboutthisReport

G4-32 Reportthe‘inaccordance’optiontheorganizationhaschosen, AboutthisReport andtheGRIContentIndexforthechosenoption.

G4-33 Reporttheorganization’spolicyandcurrentpracticewithregard – toseekingexternalassuranceforthereport.

G4-34 Reportthegovernancestructureoftheorganization,including

Governance

committeesofthehighestgovernancebody.

G4-56 Describetheorganization’svalues,principles,standards,andnorms

Governance

ofbehaviorsuchascodesofconductandcodesofethics.

G4-DMA GenericDisclosuresonManagementApproach. –


REPORT PROFILE

Atthistime,GLOBALFOUNDRIESisnotseekingexternalassuranceforthisreport.

Notdisclosed;GLOBALFOUNDRIESisprivatelyheld.

GOVERNANCE

ECONOMIC

MATERIAL ASPECT: ECONOMIC PERFORMANCE

ETHICS AND INTEGRITY



G4-EC1 Directeconomicvaluegeneratedanddistributed. –

G4-EC2 Financialimplicationsandotherrisksandopportunitiesforthe –

organization’sactivitiesduetoclimatechange.

G4-EC3 Coverageoftheorganization’sdefinedbenefitplanobligations. –

G4-EC4 Financialassistancereceivedfromgovernment. –

G4-DMA Genericdisclosuresonmanagementapproach. SustainableManufacturing

G4-EC8 Significantindirecteconomicimpacts,includingtheextentofimpacts. SustainableManufacturing






ASPECT: INDIRECT ECONOMIC IMPACTS


G4-EN3 Energyconsumptionwithintheorganization. SustainableManufacturing

G4-EN5 Energyintensity. SustainableManufacturing

G4-EN6 Reductionofenergyconsumption. SustainableManufacturing

G4-EN7 Reductionsinenergyrequirementsofproductsandservices. ProductStewardship

ENVIRONMENTAL

Exampleswithsignificantreductionsarereported.

Examplesarereportedfornewandexistingenergy-efficienttechnologiesthatenableourcustomerstodesignenergy-efficientproducts.

MATERIAL ASPECT: ENERGY




G4-EN8 Totalwaterwithdrawalbysource. SustainableManufacturing

G4-EN10 Percentageandtotalvolumeofwaterrecycledandreused. SustainableManufacturing


G4-EN15 Directgreenhousegas(GHG)emissions(Scope1). SustainableManufacturing

G4-EN16 Energyindirectgreenhousegas(GHG)emissions(Scope2). SustainableManufacturing

G4-EN18 Greenhousegas(GHG)emissionsintensity. SustainableManufacturing

G4-EN21 NOX,SO

X,andothersignificantairemissions. SustainableManufacturing


MATERIAL ASPECT: WATER

MATERIAL ASPECT: EMISSIONS


G4-EN22 Totalwaterdischargebyqualityanddestination. SustainableManufacturing

G4-EN23 Totalweightofwastebytypeanddisposalmethod. SustainableManufacturing

G4-EN24 Totalnumberandvolumeofsignificantspills. –


G4-EN29 Monetaryvalueofsignificantfinesandtotalnumberofnon-monetary

SustainableManufacturing sanctionsfornoncompliancewithenvironmentallawsandregulations.

Nosignificantspillsoccurredin2014and2015.

MATERIAL ASPECT: COMPLIANCE

MATERIAL ASPECT: EFFLUENTS AND WASTE



G4-DMA Genericdisclosuresonmanagementapproach. SupplierResponsibility

G4-EN32 Percentageofnewsuppliersthatwerescreenedusingenvironmentalcriteria. SupplierResponsibility

G4-DMA Genericdisclosuresonmanagementapproach. OurPeopleandWorkplace

G4-LA2 Benefitsprovidedtofull-timeemployeesthatarenotprovidedto

OurPeopleandWorkplace temporaryorpart-timeemployees,bysignificantlocationsofoperation.

G4-LA3 Returntoworkandretentionratesafterparentalleave,bygender. OurPeopleandWorkplace


MATERIAL ASPECT: SUPPLIER ENVIRONMENTAL ASSESSMENT

MATERIAL ASPECT: EMPLOYMENT

SOCIAL: LABOR PRACTICES AND DECENT WORK


G4-LA6 Typeofinjuryandratesofinjury,occupationaldiseases,lostdays,

andabsenteeism,andtotalnumberofwork-relatedfatalities,OurPeopleandWorkplace

byregionandbygender.


ProgramsforskillsmanagementandlifelonglearningthatsupportG4-LA10 thecontinuedemployabilityofemployeesandassistthemin OurPeopleandWorkplace managingcareerendings.

Wedonotdisclosebygenderandregion.

MATERIAL ASPECT: TRAINING AND EDUCATION

MATERIAL ASPECT: OCCUPATIONAL HEALTH AND SAFETY




CompositionofgovernancebodiesandbreakdownofemployeesperG4-LA12 employeecategoryaccordingtogender,agegroup,minoritygroup OurPeopleandWorkplace membership,andotherindicatorsofdiversity.


G4-LA14 Percentageofnewsuppliersthatwerescreenedusinglaborpracticescriteria. SupplierResponsibility


Wedonotdisclosebyagegroupand/orotherminoritygroups.

MATERIAL ASPECT: DIVERSITY AND EQUAL OPPORTUNITY

MATERIAL ASPECT: SUPPLIER ASSESSMENT FOR LABOR PRACTICES

G4-DMA Genericdisclosuresonmanagementapproach. FullSupplierResponsibility

OperationsandsuppliersidentifiedashavingsignificantriskforG4-HR5 incidentsofchildlabor,andmeasurestakentocontributetothe FullSupplierResponsibility effectiveabolitionofchildlabor.


OperationsandsuppliersidentifiedashavingsignificantriskforG4-HR6 incidentsofforcedorcompulsorylabor,andmeasurestocontributeto SupplierResponsibility theeliminationofallformsofforcedorcompulsorylabor.

MATERIAL ASPECT: FORCED OR COMPULSORY LABOR

MATERIAL ASPECT: CHILD LABOR

HUMAN RIGHTS



G4-DMA Genericdisclosuresonmanagementapproach. StakeholderEngagement

G4-HR9 Totalnumberandpercentageofoperationsthathavebeensubjectto StakeholderEngagement humanrightsreviewsorimpactassessment.


G4-HR10 Percentageofnewsuppliersthatwerescreenedusinghumanrightscriteria. SupplierResponsibility


MATERIAL ASPECT: ASSESSMENT

MATERIAL ASPECT: SUPPLIER HUMAN RIGHTS ASSESSMENT

WeperiodicallyassessourconformancewiththeEICCCodeusingtheEICC’sself-assessmenttools,andmaketheresultsavailabletoourcustomers.

G4-DMA Genericdisclosuresonmanagementapproach. CommunityEngagement

G4-SO1 Percentageofoperationswithimplementedlocalcommunity

CommunityEngagement

engagement,impactassessments,anddevelopmentprograms.


G4-SO3 Totalnumberandpercentageofoperationsassessedforrisksrelated – tocorruptionandthesignificantrisksidentified.

G4-SO4 Communicationandtrainingonanti-corruptionpoliciesandprocedures. Governance

MATERIAL ASPECT: ANTI-CORRUPTION

MATERIAL ASPECT: LOCAL COMMUNITIES

SOCIETY

In2016,thecompany’sEthics&Complianceteamconductedanenterpriseriskassessmentthatcovered17uniqueriskareas.Nosignificantrisksrelatedtocorruptionwereidentified.



G4-DMA GenericDisclosuresonManagementApproach. Governance

G4-SO8 Monetaryvalueofsignificantfinesandtotalnumberofnon-monetary – sanctionsfornoncompliancewithlawsandregulations.


In2014and2015,GFwasnotassessedanysignificantfinesornon-monetarysanctions.ForEHS-relatedfines,pleaserefertoSustainableManufacturing.

None

G4-DMA GenericDisclosuresonManagementApproach. SupplierResponsibility

G4-SO9 Percentageofnewsuppliersthatwerescreenedusingcriteriafor

SupplierResponsibility impactsonsociety.

G4-DMA GenericDisclosuresonManagementApproach. Governance

G4-PR9 Monetaryvalueofsignificantfinesfornoncompliancewithlaws

–

andregulationsconcerningtheprovisionanduseofproductsandservices.

MATERIAL ASPECT: SUPPLIER ASSESSMENT FOR IMPACTS ON SOCIETY

PRODUCT RESPONSIBILITY

MATERIAL ASPECT: ASSESSMENTMATERIAL ASPECT: COMPLIANCE

MATERIAL ASPECT: COMPLIANCE

GLOBALFOUNDRIES®,theGLOBALFOUNDRIESlogo,andcombinationsthereofaretrademarksofGLOBALFOUNDRIESInc.intheUnitedStatesand/orotherjurisdictions.Othernamesusedinthisdocumentareforidentificationpurposesonlyandmaybe

trademarksoftheirrespectiveowners.©2016GLOBALFOUNDRIESInc.Allrightsreserved.

CORPORATE RESPONSIBILITY REPORT - GlobalFoundries

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