Q: GLOBALFOUNDRIES was only established in March 2009, but industry pundits already forecast GLOBALFOUNDRIES to be a strong competitor to established foundries. However, it is becoming increasingly difficult for even established foundries to entice fabless companies that sell large volumes of product and have instituted a partnership on process technology development to switch foundry providers. While it may be easy to attract small fabless companies, as they cannot afford to do their own process technology development, how does the company plan to draw large customers who are already loyal to their current foundries?

A: Since launching GLOBALFOUNDRIES, we've had the opportunity to engage with many of the world's largest fabless and fab-lite companies; and it is very clear that these companies desire more choice at the leading edge. GLOBALFOUNDRIES will be able to offer a strong alternative for advanced technologies. Our past experience as an integrated device manufacturer (IDM) gives us a unique set of capabilities in understanding how to operate as an extension of our customers' operations, and as GLOBALFOUNDRIES, we can now harness this for the entire market. The microprocessor segment is typically the first to utilize the world's most advanced process technology. Our experience ramping these technologies in high volumes and at mature yields gives us a tremendous advantage over our competitors at the leading edge.

In addition to our leading-edge technology, the talent we possess will also attract customers, large and small. GLOBALFOUNDRIES believes that talent is critical to technology innovation, manufacturing and the future of the foundry business model to effectively serve customers. Our company will be able to unleash our manufacturing excellence into the foundry market for our customers because we are well positioned to leverage global talent and connected to patient capital.

Q: Many IDMs, such as former IDM AMD, are switching to an outsourced business model to cut costs. How will GLOBALFOUNDRIES' supply chain ease this transition for these companies? What benefits has AMD reaped from the spin-off?

A: GLOBALFOUNDRIES has taken steps to build our own independent supply chain infrastructure optimized for a multi-client environment. This unique infrastructure integrates with our customers' environments, becoming an extension of their supply chain. We have more work to do as we finish our infrastructure build-out in 2H 2009, but I am pleased to say that we're off to a strong start.

AMD's "asset smart" strategy has allowed the company to increase its focus on silicon design, and its execution continues to improve. The company brought its recent six-core server central processing unit (CPU) “Istanbul” to market ahead of schedule and has a strong product and platform line-up for 2H 2009.

Q: When GLOBALFOUNDRIES established itself in March 2009, the recession was well underway. Did GLOBALFOUNDRIES have any reserves about entering a struggling market, or did you see it as an opportunity? How will the company continue to build its business in this challenging climate?

A: We saw 2009 as an optimal time to launch the company and invest in the market. Creating a joint venture like GLOBALFOUNDRIES is not a short-term decision. In fact, it is the result of years of strategic planning based on a long-range view of the challenges and opportunities in the industry. Because of that strategic planning, and with the help of our investors, we have been able to find advantages in the current economic environment to build our business by investing in talent, tools and technology—at a time when most companies are not able to. For example, GLOBALFOUNDRIES is investing in capacity with a new state-of-the-art $4.2 billion manufacturing facility in upstate New York; increasing capabilities at our Dresden, Germany facility; and pursuing an aggressive process technology roadmap that will lead the foundry industry.

As a committed investor and customer, AMD will drive high-volume manufacturing at the leading edge. And with ATIC, we have a savvy investor with the capital resources necessary to ensure we can make long-term investments in capacity and technology to stay on the leading edge and serve our customers for years to come.

Q: With the world's top foundries primarily based in Asia, GLOBALFOUNDRIES' fab locations in Dresden, Germany and Saratoga County, New York have set a new precedent in the pure-play foundry industry. Compared to its Asian rivals, what advantages do the fab locations of GLOBALFOUNDRIES provide the company and its customers? As a company that prides itself on being a "global" foundry, what long-term goals does the company hold in terms of expansion?

A: GLOBALFOUNDRIES' manufacturing facilities in Germany and the U.S. present a number of strategic advantages for the company and its customers. First, our fab locations provide the optimal geographic footprint to attract the world's top semiconductor technology talent. Second, with over 80 percent of our target customers in the U.S. and Europe, having fabs in these regions supports a higher level of engagement and intimacy with our customers.

While our current expansion plans are focused on the U.S. and Europe, we will look at developing long-term plans to further diversify our manufacturing footprint based on the needs of our customers.

Q: To maintain a competitive edge, many foundries are heavily investing in process technology development; however, this comes at a high price. With leading-edge technology being a cornerstone of the company's value proposition, how does GLOBALFOUNDRIES plan to provide the latest process technology at a lower cost to customers, and yet continue to support the research and development (R&D) needed to develop new process technology?

A: GLOBALFOUNDRIES' advanced process technology is possible because of the collaborative R&D model we have chosen to employ through our participation in the IBM Technology Alliance. As an early adopter of process technology, we're in a privileged position to drive leading-edge technology within a collaborative environment that harnesses the shared talents of a number of the world's largest semiconductor companies. We believe this is an incredibly scalable model and one that will provide significant competitive advantage, as it provided AMD when they competed against a much larger rival.

Q: GLOBALFOUNDRIES announced that it will bring 28-nanometer technology to the industry, displaying its advanced technology leadership. However, some foundries are already experiencing low yield levels at 40- and 65-nanometer. What measures are GLOBALFOUNDRIES taking to achieve high yield at these leading-edge nodes?

A: GLOBALFOUNDRIES possesses a number of unique capabilities that we've developed over the years to bring leading-edge technology into production at high volume and mature yield. One of the company's most significant areas of differentiation is our Automated Precision Manufacturing (APM) technology. APM functions as a central nerve center for the fab and monitors wafer production at every step of the process to ensure optimal performance, yield and predictability of production. Today, there is great opportunity to apply these technologies and capabilities to set a new standard for foundries in time-to-mature yield for high-volume, leading-edge wafer manufacturing.

Q: There is much debate within the industry concerning the migration to 450mm fabs. Some companies are pushing for the shift in the coming years, while others argue that R&D costs will be too high. Do you believe 450mm fabs will be operating in the next three to four years, or will foundries pursue working on improving their current 300mm fabs?

A: We believe there is still tremendous efficiencies and scale to be had with 300mm manufacturing. So much so that our new state-of-the-art $4.2 billion manufacturing facility in upstate New York will be built on 300mm technology. At some point, the industry will likely migrate to a larger wafer size, but we perceive this as something that's more likely to occur in the next decade or so when equipment manufacturers and the industry as a whole are ready.

Q: The microelectromechanical systems (MEMS) industry is undergoing a dramatic shift, as its market base expands into the consumer space. With an increasing number of consumer applications utilizing MEMS, more in-house production is being outsourced to independent foundries. With GLOBALFOUNDRIES' services addressing the consumer segment, is it considering entering the MEMS market? What primary markets is the company currently focusing on?

A: While GLOBALFOUNDRIES does not currently plan to venture into the MEMS market, we will certainly explore other markets with our prospective customers in the future. Our initial focus will be in areas such as CPUs/graphics processing units (GPUs), consumer electronics and low-power technologies as they typically require leading-edge process technology and have the biggest market opportunity for GLOBALFOUNDRIES.

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