20-F: GLOBALFOUNDRIES Inc. and SOITEC S.A. Amend Materials Supply Agreement for 300mm Wafers

GLOBALFOUNDRIES and SOITEC have amended their materials supply agreement to include 300mm RFSOI, PDSOI, Silicon Photonics, and FD products, effective as of the date of last signature.

Summary

• GLOBALFOUNDRIES (GF) and SOITEC S.A. have amended their Materials Supply Agreement, dated April 25, 2017, to include 300mm RFSOI, PDSOI, Silicon Photonics, and FD products.
• The addendum, referred to as the 2023-2024 Mixed Product Addendum, is effective as of the date of last signature.
• The agreement involves the purchase and supply of 300mm products and FD products as specified in Table 1, based on agreed-upon product specifications, volumes, and prices during the term of the addendum.
• SOITEC's affiliate, Soitec Microelectronics Singapore Pte. Ltd, will participate in the supply of products to GF.
• The terms of the 2023-2024 Mixed Product Addendum will control in the event of any conflict with the original agreement or other product purchase addenda.
• The addendum remains in effect until [***], with the 2021 Addendum and 2023 FD Addendum remaining in effect until their respective termination dates.
• GF will order the volumes of each product specified in Table 2 for delivery and purchase from the supplier from the commencement date through [***].
• The [***] for the FD Products, [***], is as set forth in Table 3.
• If the applicable GF Parties do not [***] Product(s) [***] after such Products were [***], the [***] for such Products [***] to be the [***] and [***] the Products will [***] the applicable GF Parties [***] (the [***]).

Sentiment

Score: 7

Explanation: The document is a standard supply agreement amendment, suggesting a neutral to slightly positive outlook as it secures future supply. However, the redactions limit a full assessment.

Positives

• The agreement secures the supply of key materials for GLOBALFOUNDRIES' manufacturing processes.
• The agreement involves an affiliate of SOITEC, expanding the supply chain.
• The agreement clarifies the order of precedence among various agreements, reducing potential conflicts.

Risks

• Specific details regarding volumes, prices, and the term of the agreement are redacted, making it difficult to assess the full impact.
• The agreement relies on SOITEC's ability to supply the required materials, and any disruption could affect GLOBALFOUNDRIES' production.
• The agreement includes [***] Volumes, which may expose GLOBALFOUNDRIES to financial risks if demand does not meet expectations.

Future Outlook

The agreement outlines a purchase and supply arrangement for 300mm RFSOI, PDSOI, and Silicon Photonics products, and FD products for the volumes and prices set forth in the agreement during the Term of this 2023-2024 Mixed Product Addendum.

Industry Context

This agreement reflects the ongoing demand for advanced semiconductor materials and the importance of securing reliable supply chains in the semiconductor industry.

Comparison to Industry Standards

• It is difficult to compare this agreement to industry standards due to the redaction of key financial details such as pricing and volumes.
• However, long-term supply agreements are common in the semiconductor industry to ensure stable supply and pricing, similar to agreements between companies like TSMC and their key suppliers.

Stakeholder Impact

• Shareholders: Securing supply chains can positively impact investor confidence.
• Customers: Ensures a stable supply of materials for GLOBALFOUNDRIES' products.
• Suppliers: Provides SOITEC with a guaranteed customer for its products.

Next Steps

• GLOBALFOUNDRIES and SOITEC will continue to execute the agreement, ensuring the supply of materials.
• GLOBALFOUNDRIES will issue purchase orders to SOITEC for the specified volumes of products.

Key Dates

Keywords

GLOBALFOUNDRIES, SOITEC, Materials Supply Agreement, 300mm RFSOI, PDSOI, Silicon Photonics, FD Products, Semiconductors, Supply Chain, Manufacturing