Cover
Cover | 12 Months Ended |
Dec. 31, 2022 shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2022 |
Current Fiscal Year End Date | --12-31 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-40974 |
Entity Registrant Name | GLOBALFOUNDRIES Inc. |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 400 Stonebreak Road Extension |
Entity Address, City or Town | Malta |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 12020 |
Title of 12(b) Security | Ordinary shares, par value US$0.02 per share |
Trading Symbol | GFS |
Security Exchange Name | NASDAQ |
Entity Common Stock, Shares Outstanding | 547,754,986 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | false |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Entity Central Index Key | 0001709048 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Business Contact | |
Document Information [Line Items] | |
Entity Address, Address Line One | 400 Stonebreak Road Extension |
Entity Address, City or Town | Malta |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 12020 |
City Area Code | (518) |
Local Phone Number | 305-9013 |
Contact Personnel Name | Dr. Thomas Caulfield |
Contact Personnel Email Address | ir@gf.com |
Audit Information
Audit Information | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2020 | |
Auditor Information [Abstract] | ||
Auditor Firm ID | 1051 | 42 |
Auditor Name | KPMG LLP | Ernst & Young LLP |
Auditor Location | Singapore, Singapore | San Jose, California |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 2,352 | $ 2,939 |
Marketable securities | 622 | 0 |
Receivables, prepayments and other assets | 1,487 | 1,231 |
Inventories | 1,339 | 1,121 |
Total current assets | 5,800 | 5,291 |
Non-current assets: | ||
Property, plant and equipment | 10,596 | 8,713 |
Goodwill and intangible assets, net | 363 | 377 |
Marketable securities | 372 | 0 |
Deferred tax assets | 292 | 353 |
Receivables, prepayments and other assets | 281 | 254 |
Other non-current financial assets | 137 | 40 |
Total non-current assets | 12,041 | 9,737 |
Total Assets | 17,841 | 15,028 |
Current liabilities: | ||
Trade payables and other current liabilities | 2,849 | 2,586 |
Current portion of long-term debt | 223 | 297 |
Current portion of lease obligations | 75 | 135 |
Provisions | 102 | 116 |
Current portion of deferred income from government grants | 110 | 29 |
Total current liabilities | 3,359 | 3,163 |
Non-current liabilities: | ||
Non-current portion of long-term debt | 2,288 | 1,716 |
Other non-current liabilities | 1,474 | 1,445 |
Non-current portion of lease obligations | 270 | 291 |
Provisions | 196 | 233 |
Non-current portion of deferred income from government grants | 294 | 147 |
Total non-current liabilities | 4,522 | 3,832 |
Total liabilities | 7,881 | 6,995 |
Equity: | ||
Share capital | 11 | 11 |
Additional paid-in capital | 23,831 | 23,487 |
Accumulated deficit | (14,021) | (15,469) |
Accumulated other comprehensive loss | 92 | (54) |
Equity attributable to the shareholders of GLOBALFOUNDRIES INC. | 9,913 | 7,975 |
Non-controlling interests | 47 | 58 |
Total equity | 9,960 | 8,033 |
Total liabilities and equity | $ 17,841 | $ 15,028 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of financial position [abstract] | ||
Par value per share (in dollars per share) | $ 0.02 | $ 0.02 |
Number of shares issued (in shares) | 547,755,000 | 531,846,000 |
Number of shares outstanding (in shares) | 547,755,000 | 531,846,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Profit or loss [abstract] | |||
Net revenue | $ 8,108 | $ 6,585 | $ 4,851 |
Cost of revenue | 5,869 | 5,572 | 5,563 |
Gross profit (loss) | 2,239 | 1,013 | (712) |
Research and development expenses | 482 | 478 | 476 |
Selling, general and administrative expenses | 496 | 595 | 445 |
Restructuring charges | 94 | 0 | 0 |
Operating expenses | 1,072 | 1,073 | 921 |
Impairment charges | 0 | 0 | 23 |
Other operating expenses | 0 | 0 | 23 |
Income (loss) from operations | 1,167 | (60) | (1,656) |
Finance income | 51 | 6 | 3 |
Finance expenses | (111) | (114) | (154) |
Gain on sale of East Fishkill (“EFK”) business | 403 | 0 | 0 |
Other income (expense), net | 22 | (8) | 442 |
Income (loss) before income taxes | 1,532 | (176) | (1,365) |
Income tax (expense) benefit | (86) | (78) | 12 |
Net income (loss) for the year | 1,446 | (254) | (1,353) |
Attributable to: | |||
Shareholder of GLOBALFOUNDRIES INC. | 1,448 | (250) | (1,350) |
Non-controlling interest | (2) | (4) | (3) |
Net income (loss) for the year | $ 1,446 | $ (254) | $ (1,353) |
Net income (loss) per share attributable to the equity holders of the Company: | |||
Basic weighted average common shares outstanding (in shares) | 539 | 506 | 500 |
Diluted weighted average common shares outstanding (in shares) | 552 | 506 | 500 |
Basic loss per share (in USD per share) | $ 2.69 | $ (0.49) | $ (2.70) |
Diluted loss per share (in USD per share) | $ 2.62 | $ (0.49) | $ (2.70) |
CONSOLIDATED STATEMENTS OF OTHE
CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE LOSS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of comprehensive income [abstract] | |||
Net income (loss) for the year | $ 1,446 | $ (254) | $ (1,353) |
Attributable to: | |||
Shareholder of GLOBALFOUNDRIES INC. | 1,448 | (250) | (1,350) |
Non-controlling interest | (2) | (4) | (3) |
Net income (loss) for the year | 1,446 | (254) | (1,353) |
Items that may be reclassified subsequently to profit or loss: | |||
Share of foreign exchange fluctuation reserve of joint ventures | (23) | (12) | 0 |
Effective portion of changes in the fair value of cash flow hedges | 187 | (45) | (23) |
Fair value (loss) on investments measured at fair value through other comprehensive income | (9) | 0 | 0 |
Income tax effect | (18) | 3 | (2) |
Total other comprehensive income that will be reclassified to profit or loss, net of tax | 137 | (54) | (25) |
Items that will not be reclassified subsequently to profit or loss: | |||
Remeasurement of existing equity interests | 0 | 0 | 7 |
Share of foreign exchange fluctuation reserve of joint ventures and associates | 0 | 0 | 14 |
Attributable to: | |||
Shareholders of GLOBALFOUNDRIES INC. | 146 | (50) | (9) |
Non-controlling interests | (9) | (4) | 5 |
Total other comprehensive income (loss) for the year | 137 | (54) | (4) |
Total comprehensive income (loss) | |||
Shareholders of GLOBALFOUNDRIES INC. | 1,594 | (300) | (1,359) |
Non-controlling interests | (11) | (8) | 2 |
Total comprehensive income (loss) for the year | $ 1,583 | $ (308) | $ (1,357) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net income (loss) for the year | $ 1,446 | $ (254) | $ (1,353) | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Depreciation and amortization | 1,623 | 1,618 | 2,522 | |
Share-based payments | 181 | 223 | 1 | |
Interest and income taxes paid, net | [1] | 68 | 107 | 170 |
Impairment charges | 0 | 0 | 23 | |
Finance income | (51) | (6) | (3) | |
Finance expenses | 111 | 114 | 154 | |
Amortization of deferred income from government grants | (28) | (33) | (51) | |
Deferred income taxes | 82 | 93 | (38) | |
Gain on disposal of property, plant and equipment and other | (103) | (39) | (140) | |
Gain on the sale of a business | (403) | 0 | 0 | |
Change in assets and liabilities: | ||||
Receivables, prepayments and other assets | 35 | (387) | 753 | |
Inventories | (261) | (202) | (560) | |
Trade and other payables | 60 | 1,819 | (134) | |
Net cash provided by operating activities | 2,624 | 2,839 | 1,004 | |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Purchases of property, plant and equipment and intangible assets | (3,059) | (1,767) | (592) | |
Advances and proceeds from sale of property, plant and equipment and intangible assets | 41 | 324 | 109 | |
Purchase of investment in marketable securities | 1,302 | 0 | 0 | |
Proceeds from sale of marketable securities | 306 | 0 | 0 | |
Proceeds from sale of fabrication facilities and ASIC business | 0 | 0 | 111 | |
Other investing activities | (44) | (7) | 6 | |
Net cash used in investing activities | (4,058) | (1,450) | (366) | |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from issuance of equity instruments | 168 | 1,444 | 0 | |
Repayments of shareholder loan | 0 | (568) | (487) | |
Repayments of borrowings from shareholder | 0 | 0 | (112) | |
Net proceeds from borrowings | 971 | 617 | 2,801 | |
Repayments of debt and finance lease obligations | (390) | (960) | (3,246) | |
Proceeds from government grants | 93 | 83 | 312 | |
Increase (decrease) in restricted cash | 0 | 34 | (1) | |
Net cash provided by financing activities | 842 | 650 | (733) | |
Effect of exchange rate changes on cash and cash equivalents | 5 | (8) | 6 | |
Net increase (decrease) in cash and cash equivalents | (587) | 2,031 | (89) | |
Cash and cash equivalents at the beginning of the year | 2,939 | 908 | 997 | |
Cash and cash equivalents at the end of the year | 2,352 | 2,939 | 908 | |
Noncash investing and financing activities: | ||||
Amounts payable for property, plant and equipment | 901 | 428 | 202 | |
Property, plant and equipment acquired through lease | 66 | 97 | 9 | |
Amounts payable for intangible assets | $ 89 | $ 89 | $ 159 | |
[1]Includes interest paid of $96 million, $101 million and $146 million for years ended December 31, 2022, 2021 and 2020, respectively, and interest received of $32 million, $1 million and $4 million for the years ended December 31, 2022, 2021 and 2020, respectively. |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of cash flows [abstract] | |||
Interest paid | $ 96 | $ 101 | $ 146 |
Interest received | $ 32 | $ 1 | $ 4 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) shares in Thousands, $ in Millions | Total | Total | Common Share | Additional Paid-In Capital | Loan from Shareholder | Accumulated Deficit | Hedging Reserve | Foreign Currency Translation Reserve and Investments Reserves | Non- controlling Interest |
Beginning balance | $ 9,020 | $ 9,020 | $ 10 | $ 11,706 | $ 11,168 | $ (13,869) | $ 10 | $ (5) | $ 0 |
Beginning balance (in shares) at Dec. 31, 2019 | 500,000 | ||||||||
Share-based payments | 1 | 1 | 1 | ||||||
Acquisition of subsidiaries | 64 | 64 | |||||||
Repayment of loan from shareholder | (487) | (487) | (487) | ||||||
Net income (loss) for the year | (1,353) | (1,350) | (1,350) | (3) | |||||
Other comprehensive (loss) income | (4) | (9) | (25) | 16 | 5 | ||||
Ending balance (in shares) at Dec. 31, 2020 | 500,000 | ||||||||
Ending balance at Dec. 31, 2020 | 7,241 | 7,175 | $ 10 | 11,707 | 10,681 | (15,219) | (15) | 11 | 66 |
Beginning balance | 7,241 | 7,175 | $ 10 | 11,707 | 10,681 | (15,219) | (15) | 11 | 66 |
Proceeds from issuance of equity instruments | 32,000 | ||||||||
Proceeds from issuance of equity instruments | 1,445 | 1,445 | $ 1 | 1,444 | |||||
Share-based payments | 223 | 223 | 223 | ||||||
Repayment of loan from shareholder | (568) | (568) | (568) | ||||||
Conversion of loan from shareholder | 10,113 | (10,113) | |||||||
Net income (loss) for the year | (254) | (250) | (250) | (4) | |||||
Other comprehensive (loss) income | $ (54) | (50) | (42) | (8) | (4) | ||||
Ending balance (in shares) at Dec. 31, 2021 | 531,846 | 532,000 | |||||||
Ending balance at Dec. 31, 2021 | $ 8,033 | 7,975 | $ 11 | 23,487 | 0 | (15,469) | (57) | 3 | 58 |
Beginning balance | 8,033 | 7,975 | $ 11 | 23,487 | 0 | (15,469) | (57) | 3 | 58 |
Proceeds from issuance of equity instruments | 6,000 | ||||||||
Proceeds from issuance of equity instruments | 163 | 163 | 163 | ||||||
Share-based payments (in shares) | 10,000 | ||||||||
Share-based payments | 181 | 181 | 181 | ||||||
Net income (loss) for the year | 1,446 | 1,448 | |||||||
Other comprehensive (loss) income | $ 137 | 146 | 160 | (14) | (9) | ||||
Ending balance (in shares) at Dec. 31, 2022 | 547,755 | 548,000 | |||||||
Ending balance at Dec. 31, 2022 | $ 9,960 | 9,913 | $ 11 | 23,831 | 0 | (14,021) | 103 | (11) | 47 |
Beginning balance | $ 9,960 | $ 9,913 | $ 11 | $ 23,831 | $ 0 | $ (14,021) | $ 103 | $ (11) | $ 47 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2022 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Organization | Organization GLOBALFOUNDRIES Inc. (“GLOBALFOUNDRIES”) is an exempted company with limited liability incorporated under the laws of the Cayman Islands. The address of GLOBALFOUNDRIES’ registered office is P.O. Box 309, Ugland House, Grand Cayman, KY1-1104 Cayman Islands. GLOBALFOUNDRIES and its subsidiaries (together referred to as the “Company”) is one of the world’s largest pure-play semiconductor foundries and offer a full range of mainstream wafer fabrication services and technologies. The Company manufactures a broad range of semiconductor devices, including microprocessors, mobile application processors, baseband processors, network processors, radio frequency modems, microcontrollers, and power management units. GLOBALFOUNDRIES is a majority owned subsidiary of Mubadala Technology Investments LLC (“Shareholder”) through its subsidiaries, Mubadala Technology Investment Company and MTI International Investment Company LLC. Mubadala Technology Investments LLC is a subsidiary of Mamoura Diversified Global Holding PJSC (“MDGH”). Mubadala Investment Company PJSC (“MIC”) is the ultimate parent company. See Not e 28 for fu rther discussion of the Company’s related party disclosures. The Company previously entered into an agreement with Semiconductor Components Industries, LLC (“ON Semiconductor”) to sell the Company’s business in East Fishkill, New York, including buildings, facilities, certain equipment, inventories, and certain contracts. Under the agreement the Company will manufacture 300mm wafers for ON Semiconductor until the end of 2023 for additional fees, allowing ON Semiconductor to increase its 300mm production at the East Fishkill fab over several years. Under the agreement, ON Semiconductor committed to minimum fixed cost payments in each year through 2023. On December 31, 2022, the Company completed the sale of the EFK business for a total purchase price of $406 million, of which $170 million was received in prior years, and the remaining $236 million received in January 2023. The Company recognized a gain upon the completion of the sale amounting to $403 million. |
Basis of Preparation
Basis of Preparation | 12 Months Ended |
Dec. 31, 2022 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Basis of Preparation | Basis of Preparation Statement of Compliance —The consolidated financial statements of the Company have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The consolidated financial statements comprise the financial statements of GLOBALFOUNDRIES and its subsidiaries. Basis of Measurement —These financial statements have been prepared on the historical cost basis except as otherwise described in the notes below. Functional and Presentation Currency —The consolidated financial statements are presented in United States (U.S.) dollars ($), which is the Company’s functional and presentation currency. Foreign Currency Translation —Assets and liabilities of foreign operations having a functional currency other than the U.S. dollar are translated at the rate of exchange prevailing at the reporting date and revenue and expenses at the rate of exchange prevailing at the dates of the transactions during the period. Gains or losses on translation of foreign operations are included in other comprehensive income (loss). In preparing the consolidated financial statements of the company, foreign currency-denominated monetary assets and liabilities are translated into the functional currency using the closing rate at the applicable consolidated statement of financial position dates. Non-monetary assets and liabilities, denominated in a foreign currency and measured at fair value, are translated at the rate of exchange prevailing at the date when the fair value was determined and non-monetary assets measured at historical cost are translated at the historical rate. Revenue and expenses are measured in the functional currency at the rates of exchange prevailing at the dates of the transactions with gains or losses included in income. Basis of Consolidation —The consolidated financial statements comprise the financial statements of GLOBALFOUNDRIES and its subsidiaries. Subsidiaries are fully consolidated from the date of acquisition, being the date on which GLOBALFOUNDRIES obtains control, and continue to be consolidated until the date when such control ceases. All intercompany transactions, balances, income and expenses are eliminated in full on consolidation. Wholly owned subsidiaries and controlled entities included in these consolidated financial statements are disclosed in N ote 28 . Control is achieved when the Company is exposed, or has rights, to variable returns from its involvement with the subsidiary and has the ability to affect those returns through its power over the subsidiary. Specifically, the Company controls a subsidiary if the Company (a) has power over the subsidiary, (b) is exposed, or has rights, to variable returns from its involvement with subsidiary, and (c) has the ability to use the power to affect its returns. Profit or loss and each component of other comprehensive income (loss) (“OCI”) are attributed to the equity holder of the Company and to the non-controlling interests. A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the Company loses control over a subsidiary, it derecognizes the related assets (including goodwill), liabilities, non-controlling interest and other components of equity, while any resulting gain or loss is recognized in the consolidated statements of operations. Any investment retained is recognized at fair value. |
Summary of Significant Policies
Summary of Significant Policies, Judgements, Estimates and Assumptions | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies, Changes In Accounting Estimates And Errors [Abstract] | |
Summary of Significant Policies, Judgements, Estimates and Assumptions | Summary of Accounting Policies, Judgements, Estimates and Assumptions Invest ments in Joint Ventures —Joint ventures are those entities over whose activities the Company has joint control, established by contractual agreement and requiring unanimous consent for strategic financial and operating decisions. Investments in jointly controlled entities are accounted for using the equity method of accounting (herein after referred to as “equity accounted investees”) and are recognized initially at cost. The consolidated financial statements include the Company’s share of the income and expenses and equity movements of equity accounted investees, after adjustments to align the accounting policies with those of the Company, from the date that joint control commences until the date that joint control ceases. At each reporting date, the Company determines whether there is objective evidence that the investment in the joint venture is impaired. If there is such evidence, the Company calculates the amount of impairment as the difference between the recoverable amount of the joint venture and its carrying value, and then recognizes the loss as a share of profit (loss) of joint ventures and associates in the consolidated statements of operations). When the Company’s share of losses exceeds its interest in an equity accounted investee, the carrying amount of that interest, including any long-term investments, is reduced to zero, and the recognition of further losses is discontinued except to the extent that the Company has an obligation on behalf of the investee. Cash and Cash Equivalents —Cash and cash equivalents includes cash on hand and balances at banks, deposits held on call with banks, and financial instruments that are not subject to significant risk of changes in value, are readily convertible into cash and have original maturities of three months or less at the time of purchase. Trade Accounts Receivable —Trade accounts receivable are recognized initially at fair value. A provision for impairment of trade accounts receivable is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivable. Financial Instruments: Category of financial instruments and measurement Recognition and Initial Measurement —Trade receivables are initially recognized when they are originated. All other financial assets and financial liabilities are initially recognized when the Company becomes a party to the contractual provisions of the instrument. A financial asset or financial liability is initially measured at fair value including transaction costs that are directly attributable to its acquisition or issuance, and are recognized at fair value in the profit and loss (“FVPL”) are expensed in consolidated statements of operations. A trade receivable without a significant financing component is initially measured at the transaction price. Classification and Measurement —All recognized financial assets are measured based on amortized cost or fair value. The classification is based on two criteria, the Company’s business model for managing the assets and whether the instrument’s contractual cash flows represent solely payments of principal and interest (“SPPI”). The assessment of whether contractual cash flows on debt instruments are solely comprised of principal and interest is made based on the facts and circumstances at the initial recognition of assets. Financial assets include trade and other receivables. These are recorded at amortized cost when such financial assets are held with the objective to collect contract cash flows that meet the SPPI criterion. Financial assets recorded at FVPL comprise unquoted equity instruments which the Company had not irrevocably elected, at initial recognition, to classify at fair value through other comprehensive income (“FVOCI”). Financial assets recorded at FVOCI comprise marketable securities that are quoted debt instruments when such financial assets are held with the objectives of collecting contractual cash flows and meets the SPPI criterion. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses and interest income which are recognized in the consolidated statements of operations. Interest income from these financial assets is included in finance income using the effective interest rate method. Impairment of financial assets The Company will record an allowance for expected credit losses (“ECL”) for all loans to related parties, marketable securities (that are quoted debt instruments), contract assets, and trade receivables and other receivables not recorded at FVPL. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Company expects to receive. The shortfall is then discounted to the asset’s original effective interest rate. The Company estimated its expected credit losses for its contract assets and trade receivables at an amount equal to lifetime credit losses, while marketable securities and other receivables are measured at 12-months ECL if they are determined to have low credit risk at the reporting date. Offsetting of Financial Instruments —Financial assets and financial liabilities are offset and the net amount reported in the consolidated statements of financial position when there is an enforceable legal right to offset the recognized amounts, and there is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously. Fair Value of Financial Instruments —The fair value of financial instruments that are traded in active markets at each reporting date is determined by reference to quoted market prices or dealer price quotations (bid price for long positions and ask price for short positions), without any deduction for transaction costs. For financial instruments not traded in an active market, the fair value is determined using appropriate valuation techniques. Such techniques may include using recent arm’s-length market transactions; reference to the current fair value of another instrument that is substantially the same; a discounted cash flow analysis or other valuation models. Derivative Financial Instruments and Hedge Accounting —The Company uses derivative financial instruments, such as foreign currency forward contracts, interest rate swaps, cross currency swaps and commodity forward contracts to mitigate the risks associated with changes in foreign currency exchange, interest rates and commodity price. The Company does not use derivative financial instruments for trading or speculative purposes. Derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value at each reporting date. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. In applying its strategy, from time to time, the Company uses foreign currency forward contracts to hedge certain forecasted expenses denominated in foreign currencies, primarily the Euro and Singapore Dollar. The Company hedges future cash flows for capital expenditures denominated in foreign currencies, primarily the Euro. In addition, the Company uses pay-fixed/receive-float interest rate swaps and cross-currency swaps to protect the Company against adverse fluctuations in interest rates and foreign currency rates and to reduce its exposure to variability in cash flows on the Company’s forecasted floating-rate debts and foreign currency- denominated debts. The Company also uses commodity forward contracts to hedge forecasted electricity consumption to minimize the impact of commodity price movements on the reported earnings of the Company and on future cash flows related to fluctuations of the contractually specified, separately identifiable and reliably measurable commodity risk component. At the inception of the hedge relationship, the Company documents the relationship between the hedging instrument and the hedged item along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the inception of the hedge, and on an ongoing basis, the Company documents whether a hedging relationship meets the hedge effectiveness requirements under IFRS 9 and whether there continues to be an economic relationship between the hedged item and the hedging instrument. The Company designates these contracts and swaps as cash flow hedges of forecasted expenses, capital expenditures or floating-rate and foreign currency denominated debts, as applicable, and evaluates hedge effectiveness prospectively. As such, the effective portion of the gain or loss on these contracts and swaps is reported as a component of OCI and reclassified to the consolidated statements of operations in the same line item as the associated forecasted transaction for expenses and in the same period during which the hedged item affects earnings. For hedges of capital expenditures, the amount in OCI is incorporated into the initial carrying amounts of the non-financial assets and depreciated over the average useful life of the underlying assets. Any ineffective portion of hedges for expenses or capital expenditures is immediately recorded in the consolidated statements of operations. Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or when it no longer meets the criteria for hedge accounting. Any gain or loss recognized in the cash flow hedge reserve remains in equity and is recognized in the consolidated statements of operations when the forecast transaction is ultimately recognized in the consolidated statements of operations. When a forecasted transaction is no longer expected to occur, the gain or loss accumulated in equity is recognized immediately in the consolidated statements of operations. Derecognition of financial assets The Company derecognizes a financial asset only when the contractual rights to the cash flows from the financial asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the financial asset to another entity. On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in the consolidated statements of operations. On derecognition of an investment in a debt instrument at FVOCI, the difference between the asset’s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognized in OCI is recognized in the consolidated statements of operations. However, on derecognition of an investment in an equity instrument at FVOCI, the cumulative gain or loss that had been recognized in OCI is transferred directly to retained earnings, without recycling through the consolidated statements of operations. Intangible Assets —Technology, patent, software licenses and similar rights acquired separately are stated at cost or are adjusted to fair value when impaired. Intangible assets acquired through business combinations which include customer relationships and manufacturing and process technology, are recorded at estimated fair values at the date of acquisition. Intangible assets are amortized based on the pattern in which the economic benefits of the respective intangible asset are consumed, which is in general on a straight-line basis over their estimated useful lives of between 3 and 10 years. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Impairment of Non-Financial Assets —The Company reviews, at each reporting date, the carrying amount of the Company’s property, plant and equipment and finite lived intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any indication exists, the recoverable amount of the asset is estimated in order to determine the extent, if any, of the impairment loss. Where it is not possible to estimate the recoverable amount of an individual assets, the Company estimates the recoverable amount of the cash generating unit (“CGU”) to which the asset belongs. The recoverable amount of an asset or CGU is estimated to be the higher of an asset’s or CGU’s fair value less costs to dispose and its value in use. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset or CGU is considered impaired and is written down to its recoverable amount. The Company also evaluates, and adjusts if appropriate, the asset’s useful lives, at each reporting date or when impairment indicators exist. In assessing value in use, the estimated future post-tax cash flows are discounted to their present value using a post-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. The Company bases its impairment calculation on detailed budgets and forecast calculations, which may include an approved formal five-year management plan for each of the CGUs to which the individual assets are allocated. In determining fair value less costs to sell, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. Impairment losses are recognized in the consolidated statements of operations and comprehensive income (loss) to the extent of the recoverable amount, measured at the present value of discounted cash flows attributable to the assets, is less than their carrying value. If the recoverable amount subsequently increases, the impairment loss previously recognized will be reversed to the extent of the increase in the recoverable amount, provided that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset in prior years. The impairment loss reversal is recognized immediately in the consolidated statements of operations. Provisions —Provisions are recognized when the Company has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated. Provisions are mainly made up of site restoration obligations, as well as restructuring charges. The associated site restoration costs are capitalized as part of the carrying amount of the underlying asset and depreciated over the estimated useful life of the related long-lived assets. A provision for restructuring is recognized when the Company has approved a detailed and formal restructuring plan, and the restructuring either has commenced or has been announced publicly. Future operating losses are not provided for. The Company records site restoration obligations in the period in which they are incurred at their estimated fair value. Site restoration obligations consist of the present value of the estimated costs of dismantlement, removal, site reclamation and similar activities associated with facilities built on land held under long-term operating leases. The site restoration obligations are recorded as a liability at the estimated present value as of the related long-lived asset’s inception discounted using a pre-tax rate that reflects the current market assessment of the time value of money and risks specific to the site restoration obligations. After initial recognition, the liability is increased for the passage of time, with the increase being reflected as accretion expense in the line item “finance expenses” in the consolidated statements of operations and comprehensive income (loss). The associated site restoration costs are capitalized as part of the carrying amount of the underlying asset and depreciated over the estimated useful life of the related long-lived asset. Subsequent adjustments in the discount rates, estimated amounts, timing and probability of the estimated future costs and changes resulting from the passage of time are recognized as an increase or decrease in the carrying amount of the liability and the related site restoration cost capitalized as part of the carrying amount of the related long-lived asset on a prospective basis. If the decrease in the liability exceeds the remaining carrying amount of the related long-lived assets, the excess is recognized in the consolidated statements of operations. Property, Plant and Equipment —Construction in progress, property, plant and equipment are stated at historical cost, net of accumulated depreciation. The assets’ residual values and useful life are reviewed, and adjusted if appropriate, at each balance sheet date. Major additions and improvements are capitalized as appropriate, only when it is probable that future economic benefits associated with the item and the cost of the item can be measured reliably; minor replacements and repairs are charged to the consolidated statements of operations. The Company also capitalizes interest on borrowings related to eligible capital expenditures. Capitalized interest is added to the cost of qualified assets and depreciated together with that asset cost. The Company also records capital-related government grants, not subject to forfeiture, as a reduction to property, plant and equipment. Depreciation generally begins when the asset is in the location and condition necessary for it to be capable of operating in the manner intended by management (available for use). Depreciation is calculated on a straight-line basis over the estimated useful life of the assets as follows: Building and leasehold/land improvements Up to 26 years (or the remaining lease term of related land on which the buildings are erected, if shorter) Equipment 2 to 10 years Computers 5 years During the first quarter of 2021 , we revised the estimated useful life of certain production equipment and machinery from a range of 5 to 8 years, to 10 years . We made this change to better reflect the expected pattern of economic benefits from the use of the equipment and machinery over time, based on an analysis of production equipment’s current use, historical age patterns, and future plans and technology roadmaps, as well as an analysis of industry trends and practices. The analysis concluded that an increase in useful lives was warranted, and consistent with the Company’s continuing portfolio shift from leading-edge to feature-rich trailing edge technologies. The change in estimated useful life is a change in accounting estimate that was applied prospectively from January 1, 2021. Leasing —The Company determines if an arrangement is a lease or contains a lease at inception. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Right-of-use assets —The Company recognizes right-of-use assets at the commencement date of the lease (i.e. the date the underlying asset is available for use). Right-of-use assets are reported within property, plant and equipment, and are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets. If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset. Lease liabilities —At the commencement date of the lease, the Company recognizes lease liabilities measured at the present value of the lease payments to be made over the lease term. Only lease payments that are fixed and determinable are considered at the time of commencement. The lease payment includes fixed payments (including in-substance fixed payments) less any lease incentives, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognized as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs. In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g . , changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying assets. The Company’s lease liabilities are separately reported in the consolidated statements of financial position under non-current portion of lease obligations and current portion of lease obligations. Short-term leases and leases of low-value assets —The Company applies the short-term lease recognition exemption to leases that have a lease term not exceeding 12 months, or for leases of low-value assets. The payment for such leases is recognized in the Company’s consolidated statements of operations on a straight-line basis over the lease term. Earnings Per Share —Basic earnings per share is calculated by dividing the net income (loss) attributable to equity holders of the Company by the weighted average number of ordinary shares outstanding during the year. Diluted earnings per share is calculated by dividing the net income (loss) attributable to equity holders of the Company by the weighted average number of ordinary shares outstanding, adjusted for the effects of all potentially dilutive ordinary shares. The weighted average number of ordinary shares outstanding is increased by the number of additional ordinary shares that would have been issued by the Company assuming exercise of all options with exercise prices below the average market price for the year. Government Grants —Government grants are recognized when there is reasonable assurance that the grant will be received and all attached conditions will be complied with. When the grant relates to an expense item or relates to acquisition of assets, it is recognized as deferred income and released to the consolidated statements of operations over the period necessary to match the grant on a systematic basis to the costs that it is intended to compensate and is presented as a reduction of those costs. Where the grant relates to investment tax credits, it is recognized as a reduction in the basis of the asset and released as a reduction to depreciation expense in equal amounts over the expected useful life of the related asset. Grants the Company received are primarily provided in connection with construction and operation of the Company’s manufacturing facilities, employment, research and development. Research and Development Costs —Research costs are expensed as incurred. Development costs are recognized as intangible assets only when it is probable that expected future economic benefits, attributable to the development activities, will accrue to the Company. Borrowing Costs —Borrowing costs directly attributable to the construction phase of property, plant and equipment are capitalized as part of the cost of assets which are constructed by the Company and for which a considerable period of time (at least six months) is planned for construction. Borrowing costs are capitalized from the start of construction until the date the asset is ready for its intended use. All other borrowing costs are recognized as an expense in the period in which they are incurred. Current Income Tax —Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the balance sheet date. Deferred Tax — Deferred income tax assets are recognized for all deductible temporary differences, carryforward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carryforward of unused tax credits and unused tax losses can be utilized except in respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred income tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized. The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilized. Unrecognized deferred income tax assets are reassessed at each balance sheet date and are recognized to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date . Recent Accounting Pronouncements, Adopted: Amendments to IFRS 7, IFRS 9 and IAS 39 Interest Rate Benchmark Reform — Phase 1 Amendments - On 1 January 2020, the Company adopted the Phase 1 amendments arising from the Interbank Offered Rate (“IBOR”) reform amendments issued in September 2019, which provides temporary relief from applying specific hedge accounting requirements to hedge relationships directly affected by IBOR reform, such that the effect is that IBOR reform should not generally cause hedge accounting to terminate. Phase 2 Amendments - On 1 January 2021, the Company adopted the Phase 2 amendments arising from the IBOR reform issued in August 2020. The Phase 2 amendments address issues that arise from the implementation of the IBOR reform, including the replacement of an interest rate benchmark with an alternative benchmark rate. The key reliefs provided to the Company are as follows: • financial instruments measured at amortized cost are allowed to account for changes in the basis for determining contractual cash flows as a direct consequence of the IBOR reform by updating the effective interest rate, provided that the new basis is economically equivalent to the previous basis, such that there is no immediate gain or loss recognized; and • most IFRS 9 hedge relationships that are directly affected by the IBOR reform are allowed to continue. The Company has evaluated the extent to which its cash flow hedging relationships are subject to uncertainty driven by IBOR reform as of December 31, 2022. The Company’s hedged items and hedging instruments continue to be indexed to the Euro Interbank offered rate (“EURIBOR”) and the London Inter-bank Offered Rate (“LIBOR”). These benchmark rates are quoted each day and the IBOR cash flows are exchanged with counterparties as usual. The Company has also evaluated the extent to which contracts reference IBOR cash flows, and whether such contracts will need to be amended as a result of IBOR reform. There has been communication about IBOR reform with the counterparties. However, no amendments have been made to the Company’s existing IBOR-referenced loan and derivative contracts as of December 31, 2022. As of December 31, 2022, there is still uncertainty about when and how replacement may occur with respect to the relevant hedged items and hedging instruments. Accordingly, the Company will continue to apply the Phase 1 amendments until the uncertainty arising from the IBOR reform with respect to the timing and the amount of the underlying cash flows that the Company is exposed to is no longer present. This uncertainty will not end until the Company’s contracts that reference IBOR are amended to specify the alternative benchmark rate and the relevant adjustment, if any. This will, in part, be dependent on the negotiation with the counterparties and the introduction of fall-back clauses which have yet to be added to the Company’s contracts. The Company has a limited exposure to changes in the IBOR benchmark. The Company has $795 million of interest rate swaps which are in a cash flow hedge relationship of USD Equipment Financing and USD Term Loan A. Also, the Company has EUR $475 million of cross currency swaps which are in cash flow hedge relationships of EUR E quipment Financing and EUR Term Loan A. The table below indicates the nominal amount and weighted average maturity of derivatives in hedging relationships that will be affected by IBOR reform as financial instruments transition to risk-free rates, analyzed by interest rate basis. The derivative hedging instruments provide a close approximation to the extent of the risk exposure the Company manages through hedging relationships. As of December 31, 2022 Interest rate swaps (in millions USD) Currency Nominal amount Maturity Three-month LIBOR USD 19 2023 Three-month LIBOR USD 624 2024 Six-month LIBOR USD 152 2026 Total USD 795 Cross currency swaps (in millions Euro) Three-month LIBOR EUR 83 2024 Six-month LIBOR EUR 335 2024 Six-month LIBOR EUR 57 2026 Total EUR 475 Recent Accounting Pronouncements, Not Adopted: The Company has not adopted the following new, revised or amended IFRS standards that have been issued by the IASB but not yet effective: • Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2) - Effective for annual periods beginning on or after January 01, 2023; • Definition of Accounting Estimates (Amendments to IAS 8) - Effective for annual periods beginning on or after January 01, 2023; • Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments to IAS 12 - Effective for annual periods beginning on or after January 01, 2023; • Non-current Liabilities with Covenants - Amendments to IAS 1 - Effective for annual periods beginning on or after January 01, 2024; and • Lease Liability in a Sale and Leaseback - Amendments to IFRS 16 - Effective for annual periods beginning on or after January 01, 2024. As of the date the accompanying financial statements were authorized for issue, the Company continues to evaluate the impact on its financial position and performance as a result of the initial adoption of the aforementioned standards or interpretations and related applicable period. The Company does not anticipate the impacts of the standards effective for annual periods beginning on or after January 01, 2023 to have a material impact on the financial statements. Revenue Recognition —The Company derives revenue primarily from fabricating semiconductor wafers using the Company’s manufacturing processes for the Company’s customers based on their own or third parties’ proprietary integrated circuit designs and, to a lesser extent, from design, mask making, bumping, probing, assembly and testing services. The Company recognizes revenue from contracts with customers by applying the following steps: (i) identify the contracts with the customers; (ii) identify performance obligations in the contracts; (iii) determine the transaction price; (i |
Net Revenue
Net Revenue | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contracts with Customers [Abstract] | |
Net Revenue | Net Revenue The following table presents the Company’s revenue disaggregated based on revenue source and timing of revenue recognition. The Company believes these categories best depict how the nature and timing of revenue. (in millions) 2022 2021 2020 Type of goods and services: Wafer fabrication $ 7,627 $ 6,204 $ 4,440 Engineering and other pre-fabrication services 481 381 411 $ 8,108 $ 6,585 $ 4,851 Timing of revenue recognition: Revenue recognized over time $ 445 $ 357 $ 4,228 Revenue recognized at a point in time 7,663 6,228 623 $ 8,108 $ 6,585 $ 4,851 During the year ended December 31, 2020, due to operational and commercial reasons, the Company modified the cancellation terms of its contracts with customers that are applicable to wafer fabrication products. As a result, the Company no longer has an enforceable right to payment covering cost incurred plus a reasonable profit margin for work completed to date when a customer cancels its wafers purchase order at any stage of production. The change was effective to all wafer outstanding purchase orders as at the date of contract modification and future purchase orders thereafter. The contract modification had no impact on the originally agreed wafer volume, the related wafer price, and other terms and conditions of its existing contracts with customers. Likewise, the modification did not have an impact to its contracts to provide NRE services to the customers’ specifications; therefore, the Company continuously recognizes revenue as it delivers the NRE service as a percentage of costs incurred over total expected costs. Prior to the contract modification, the Company satisfied its performance obligations over time because of the customer’s contractual obligation to pay for work completed to date with a reasonable profit. The change in cancellation terms substantively modified the contracts with customers. As a result, the Company no longer meets the criteria to account for revenue recognition from contracts with customers over time on the outstanding purchase orders at the contract modification date and future orders thereafter. Consequently, the Company recognizes revenue on the impacted outstanding wafers orders and future orders at the point at which control of the wafers is transferred to the customer, which is determined to be at the point of wafer shipment from the Company’s facilities or delivery to the customer location, as determined by the agreed shipping terms. In 2020, the Company recognized a cumulative decrease in revenue of $315 million and a corresponding decrease in unbilled accounts receivable, and a cumulative decrease in cost of revenue of $226 million and a corresponding increase in inventories, with a net decrease in gross margin of $60 million on the impacted outstanding purchase orders on the date of contract modification. |
Cost of Revenue
Cost of Revenue | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contracts with Customers [Abstract] | |
Cost of Revenue | Cost of Revenue (in millions) 2022 2021 2020 Depreciation of PPE and amortization of intangible assets (1) $ 1,468 $ 1,422 $ 2,187 Inventory changes and materials costs and other 1,834 1,726 1,187 Staff costs, maintenance costs, and utilities (2) 2,567 2,424 2,189 $ 5,869 $ 5,572 $ 5,563 (1) Amounts are net of amortization of government grants relating to assets. See Note 12 for the detailed movements of property, plant and equipment. (2) Staff costs, maintenance costs, and utilities costs include share-based compensation of $64 million, $55 million and $0 for share options for the year ended December 31, 2022, 2021 and 2020, respectively. |
Research and Development Expens
Research and Development Expenses | 12 Months Ended |
Dec. 31, 2022 | |
Analysis of income and expense [abstract] | |
Research and Development Expenses | Research and Development Expenses (in millions) 2022 2021 2020 Staff costs, maintenance costs, and utilities (1) $ 247 $ 257 $ 230 Depreciation of PPE and amortization of intangible assets 110 147 220 Other (2) 125 74 26 $ 482 $ 478 $ 476 (1) Staff costs, maintenance costs, and utilities costs include share-based compensation of $27 million, $22 million and $0 for share options for the year ended December 31, 2022, 2021 and 2020, respectively. |
Selling, General and Administra
Selling, General and Administrative Expenses | 12 Months Ended |
Dec. 31, 2022 | |
Analysis of income and expense [abstract] | |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses (in millions) 2022 2021 2020 Staff costs, maintenance costs, and utilities (1) $ 417 $ 537 $ 340 Depreciation of PPE and amortization of intangible assets 45 49 115 Other (2) 34 9 (10) $ 496 $ 595 $ 445 (1) Staff costs, maintenance costs, and utilities costs include share-based payments of $92 million, $152 million and $1 million for share options for the year ended December 31, 2022, 2021 and 2020, respectively. See Note 3 for further discussion on the timing of expense recognition. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring [Abstract] | |
Restructuring | Restructuring In the fourth quarter 2022, the Company’s management approved and commenced a restructuring plan aimed to realign the Company’s business and strategic priorities. This worldwide restructuring plan included a reduction in the number of full-time employees, as well as a reduction in leased workspaces and engagement of consultants for strategic support. The Company incurred $94 million of restructuring charges in 2022 which includes $3 million of accelerated share-based compensation expense. These expenses are included in restructuring charges in the Company’s consolidated statements of operations, and unpaid amounts are included in provisions within current liabilities on the consolidated statements of financial position. The accelerated share-based compensation of $3 million impacted equity. The changes to the restructuring provisions recorded on the consolidated statements of financial position as of December 31, 2022, are summarized as follows: (in millions) 2022 Beginning balance as of December 31, 2021 — Provision $ 91 Amounts paid $ (5) Ending balance as of December 31, 2022 $ 86 |
Impairment Charges
Impairment Charges | 12 Months Ended |
Dec. 31, 2022 | |
Impairment of assets [Abstract] | |
Impairment Charges | Impairment Charges The Company recorded the following impairment charges: (in millions) 2022 2021 2020 Equipment $ — $ — $ 23 Total impairment charges $ — $ — $ 23 |
Finance Expenses
Finance Expenses | 12 Months Ended |
Dec. 31, 2022 | |
Analysis of income and expense [abstract] | |
Finance Expenses | Finance Expenses (in millions) 2022 2021 2020 Interest on long-term debt $ 69 $ 72 $ 98 Interest on lease obligations 23 27 35 Commitment fees and amortization of debt issuance costs 13 12 18 Accretion costs and other 6 3 3 Total finance expenses $ 111 $ 114 $ 154 |
Gain on Sale of a Business
Gain on Sale of a Business | 12 Months Ended |
Dec. 31, 2022 | |
Non-Current Asset Held For Sale And Discontinued Operations [Abstract] | |
Gain on Sale of a Business | Gain on Sale of a Business In April 2019, the Company entered into an Asset Purchase Agreement with Semiconductor Components Industries, LLC (“ON Semiconductor”) pursuant to which the Company agreed to transfer substantially all the assets and employees related to our East Fishkill (“EFK”) business. On December 31, 2022, the Company completed the sale of the EFK business for a total purchase price of $406 million, of which $170 million was received in prior years, and the remaining $236 million received in January 2023. The Company recognized a gain upon the completion of the sale amounting to $403 million after derecognition of net liabilities of $9 million. The following is the breakdown of the net liabilities that were derecognized: (in millions) December 31, Property, plant and equipment $ 83 Inventories 43 Total Assets 126 Lease liabilities (47) Other current and non-current liabilities (88) Total Liabilities (135) Net Liabilities $ (9) |
Other Income (Expense), Net
Other Income (Expense), Net | 12 Months Ended |
Dec. 31, 2022 | |
Analysis of income and expense [abstract] | |
Other Income (Expense), Net | Other Income (Expense), Net (in millions) 2022 2021 2020 Gain on legal settlement (1) $ — $ — $ 294 Gain on remeasurement of existing equity interests — — 38 Other (2) $ 22 (8) 110 Total other income (expense), net $ 22 $ (8) $ 442 (1) On April 10, 2020, under the terms of a settlement agreement, the Company received a settlement and recorded total gains of $294 million related to this settlement for the year ended December 31, 2020. (2) Relates primarily to share of profits of joint ventures, gains and losses related to hedging activities and gains on the sales of property, plant and equipment and intangible assets. |
Property, Plant And Equipment
Property, Plant And Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Property, Plant And Equipment | Property, Plant And Equipment (in millions) Land and Land Improvements Building and Leasehold Improvements Equipment Computer Construction in Progress Total Cost As of December 31, 2020 $ 104 $ 7,441 $ 22,039 $ 411 $ 451 $ 30,446 Additions (1) 26 71 33 1 1,794 1,925 Transfers from construction in progress — 116 677 28 (821) — Disposals — (46) (371) (5) (1) (423) Effects of exchange rate changes — (6) (28) — — (34) As of December 31, 2021 130 7,576 22,350 435 1,423 31,914 Additions (1) — 67 27 — 3,564 3,658 Transfers from construction in progress 1 409 935 21 (1,366) — Disposals (8) (182) (725) (17) (237) (1,169) Effect of exchange rate changes (1) (3) (18) — — (22) As of December 31, 2022 $ 122 $ 7,867 $ 22,569 $ 439 $ 3,384 $ 34,381 Accumulated Depreciation and Impairment As of December 31, 2020 $ 31 $ 3,866 $ 17,952 $ 364 $ 7 $ 22,220 Additions (1) 6 444 936 25 — 1,411 Disposals — (44) (362) (5) — (411) Effects of exchange rate changes — — (19) — — (19) As of December 31, 2021 $ 37 $ 4,266 $ 18,507 $ 384 $ 7 $ 23,201 Additions (1) 6 443 975 23 — 1,447 Disposals (4) (164) (674) (16) — (858) Effect of exchange rate changes — (1) (4) — — (5) As of December 31, 2022 $ 39 $ 4,544 $ 18,804 $ 391 $ 7 $ 23,785 Net book value as of December 31, 2021 $ 93 $ 3,310 $ 3,843 $ 51 $ 1,416 $ 8,713 Net book value as of December 31, 2022 $ 83 $ 3,323 $ 3,765 $ 48 $ 3,377 $ 10,596 (1) The Company earned investment tax credits related to the Company’s construction of a wafer fabrication facility in Saratoga County, New York (which were netted against additions relating to Building and Leasehold Improvements and Equipment). These credits were generally earned based on when the related assets were placed in service. The Company recorded the investment tax credits as a reduction of property and equipment costs. As of December 31, 2022, and 2021, the investment tax credits included in property and equipment amounted to $179 million and $214 million, respectively. The gross amount of assets recorded under right-of-use (“ROU”) leases, which are included in property, plant and equipment amounted to $888 million and $907 million as of December 31, 2022 and 2021, respectively. The net carrying value of ROU leases amounted to $282 million an d $305 million as of December 31, 2022 and 2021, respectively. Amortization of ROU assets is included in depreciation expense. Depreciation expense for the years ended December 31, 2022, 2021 and 2020 for all ROU assets was $82 million, $81 million and $57 million respectively. Depreciation expenses on property, plant and equipment are as follows: (in millions) 2022 2021 2020 Cost of revenue $ 1,377 $ 1,309 $ 2,087 Research and development expenses 40 73 121 Selling, general and administrative expenses 30 29 30 Total $ 1,447 $ 1,411 $ 2,238 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Intangible Assets [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Cost (in millions) Technology, Licenses and Similar Rights Software Patents Goodwill Others Total As of December 31, 2020 $ 1,249 $ 280 $ 234 $ 18 $ 132 $ 1,913 Additions 33 4 — — — 37 Disposals (80) — (5) — — (85) As of December 31, 2021 1,202 284 229 18 132 1,865 Additions 62 96 — — 5 163 Disposals (47) (12) (3) — — (62) As of December 31, 2022 $ 1,217 $ 368 $ 226 $ 18 $ 137 $ 1,966 Accumulated Amortization As of December 31, 2020 $ 785 $ 263 $ 186 $ — $ 131 $ 1,365 Additions 162 15 30 — — 207 Disposals (80) — (4) — — (84) As of December 31, 2021 867 278 212 — 131 1,488 Additions 150 10 16 — — 176 Disposals (46) (12) (3) — — (61) As of December 31, 2022 $ 971 $ 276 $ 225 $ — $ 131 $ 1,603 Net book value as of December 31, 2021 $ 335 $ 6 $ 17 $ 18 $ 1 $ 377 Net book value as of December 31, 2022 $ 246 $ 92 $ 1 $ 18 $ 6 $ 363 Amortization expenses on intangible assets are as follows: (in millions) 2022 2021 2020 Cost of revenue $ 91 $ 113 $ 100 Research and development expenses 70 74 99 Selling, general and administrative expenses 15 20 85 Total $ 176 $ 207 $ 284 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income taxes [Abstract] | |
Income Taxes | Income Taxes For tax reporting purposes, the Company consolidates its entities under GLOBALFOUNDRIES Inc., a Cayman Islands entity as described in Note 1. Accordingly, the Company has presented the domestic portion of the disclosures below based on its country of domicile in the Cayman Islands. As a Cayman Islands corporation, the Company’s domestic statutory income tax rate is 0.00%. The difference between the Company’s domestic statutory income tax rate and its (provision) benefit for income taxes is due to the effect of the tax rates in the other jurisdictions in which the Company operates. Principally, for the years ended December 31, 2022 and 2021, the Company is subject to United States’ federal and state taxes with a combined statu tory tax rate of 22.1% and 22.1%, respectively; German corporation and trade taxes with a combined statutory tax rate of 31.6%; and Singapore’s statutory tax rate of 17% . Income tax benefit (expense) consisted of the following: (in millions) December 31, December 31, December 31, Current income tax expense: Current income tax benefit (expense) $ (14) $ 2 $ (29) Adjustments in respect of current income tax of previous year (5) (1) — Deferred tax Net operating and investment allowance carryforwards (44) (78) 35 Currency effect on non-monetary assets of subsidiary (12) (37) 43 Other change in temporary differences (11) 36 (37) Income tax benefit (expense) reported in the consolidated statements of operations $ (86) $ (78) $ 12 A reconciliation between tax benefit and accounting profit multiplied by the Company’s statutory rate of 0.0% is as follows: (in millions) December 31, December 31, December 31, Income (Loss) before income taxes $ 1,532 $ (176) $ (1,365) Tax at Enacted Statutory Rate $ — $ — $ — Foreign tax rate differential (98) (75) 59 Adjustments in respect to current income tax of previous years (5) (1) — Government grants exempt from tax 7 5 13 Deductible expense for tax purpose — (1) (8) Impact of unrecognized deferred tax assets 57 9 (63) Non-deductible expenses for tax purposes (21) (4) — Effects of foreign exchange gains (loss) (14) (22) 40 Impact of change in liability for uncertain tax positions 1 7 9 Withholding Tax (11) — (34) Other effects (2) 4 (4) Income tax benefit (expense) $ (86) $ (78) $ 12 Effective income tax rate (5.6) % 44.3 % (0.9) % The Company has determined that it is probable that 100% of deferred tax assets can be realized in Singapore. The Company has determined that realization of deferred taxes associated with loss carryforwards is limited to reserves for uncertain tax positions in the United States that would generate future taxable income, and deferred tax assets resulting from consolidation of AMTC and BAC. In 2020, Singapore recorded a tax benefit of $64 million (included under “Foreign tax rate differential” of $59 million) relating to a revaluation of deferred tax liabilities after satisfying investment conditions necessary for an extension of a lower tax rate incentive during the year. The conditions that were required for the reduced tax rate related to fixed asset investment, increased wafer production, targeted research projects, and increased employment. In 2020, the Company recorded withholding tax amounting to $34 million, triggered primarily from a legal settlement. Components of the Company’s deferred tax assets and liabilities are attributable as follows: (in millions) December 31, December 31, Accelerated depreciation on property, plant and equipment $ (18) $ (458) Losses, credits and investment allowances available for offsetting against future taxable income 277 394 Accrued expenses 16 349 Inventory 1 65 Other comprehensive income (8) — Currency effect — (8) Deferred income — 10 Other (2) (1) Net deferred tax assets $ 266 $ 351 The net deferred tax assets as of December 31, 2022 have been adjusted to reflect a change in classification methodology primarily impacting accrued expenses and accelerated depreciation on property, plant and equipment. There is no change to presentation for balances as of December 31, 2021. The classification of the net deferred tax assets (liabilities) in the statements of financial position is as follows: (in millions) December 31, December 31, Deferred tax assets $ 292 $ 353 Deferred tax liabilities (1) (26) (2) Net deferred tax assets $ 266 $ 351 (1) Included in Other non-current liabilities in the statements of financial position. Total unrecognized deferred tax assets as of December 31, 2022 and 2021 w as $3,708 million and $3,355 million, respectively. The Company does not anticipate any significant changes to the total amounts of unrecognized deferred tax assets within the next 12 months of the reporting date. Deferred tax assets have not been recognized in respect to these items because it is not probable that future taxable profit will be available against which the Company can utilize the benefits. As of December 31, 2022 and 2021, the Company has accumulated corporate losses in Germany of $1,132 million and $1,182 million, respectively, and trade tax losses in Germany of $851 million and $898 million, respectively. Except for a fully deductible base amount, utilization of German net operating loss carryforwards is limited to 60% of taxable income in any one year. German net operating losses do not expire with the passage of time, but may forfeit partially or completely as a result of legal entity restructurings. As of December 31, 2022 and 2021, the Company has unutilized capital allowances on the property and equipment held in Singapore of $713 million and $1,169 million, respectively, and unutilized tax losses available for carryforward of $58 million and $58 million, respectively. Under Singapore tax law, unutilized capital allowances and unutilized tax losses are deductible to the extent of income available. Unutilized capital allowances and unutilized tax losses can be carried forward indefinitely subject to compliance with the conditions that there is no substantial change in shareholders and no change in the Company’s principal activities, where applicable. As of December 31, 2022 and 2021, the Company has investment allowances of $843 million and $843 million, respectively in Singapore which can be carried forward indefinitely. These carryforward tax attributes have been fully recognized as deferred tax assets. As of December 31, 2022 and 2021, the Company has gross operating loss carryforwards in the United States of $7,307 million and $8,066 million, respectively; $5,762 million will expire in years 2029 through 2037 . As of December 31, 2022 and 2021, the Company has $822 million and $854 million, respectively of California gross operating loss carryforwards and, in the other states in which it operates, it has gross operating loss carryforwards of $885 million and $963 million, respectively. The state carryforwards expire beginning in 2023. In addition, the Company has U.S. research and development tax credit carryforwards of $157 million and $146 million for the years December 31, 2022 and 2021, respectively, that will expire in years 2030 through 2042. The Company has California research and development tax credits of $17 million and $15 million as of December 31, 2022 and 2021, respectively, that do not expire. In addition, the Company has nonrefundable New York Empire Zone credit carryforwards of $1,115 million and $1,115 million as of December 31, 2022 and 2021, respectively, that do not expire. Five other states have research and development tax credits, Texas, Minnesota, Vermont, North Carolina, and New Jersey for which the Company has calculated a total credit carryforward of $8 million and $8 million for the years December 31, 2022 and 2021, respectively. These credits have a carryforward that expire between 2030 through 2042. These carryforward attributes have not been recognized as deferred tax assets. At December 31, 2022 and 2021, no deferred tax liabilities were recorded for taxes that would be payable on the undistributed earnings of the Company’s subsidiaries. It is the Company’s intention to indefinitely reinvest the undistributed earnings of its foreign subsidiaries. The cash that is permanently reinvested is typically used to expand operations. A reconciliation of deferred taxes, net is as follows: (in millions) December 31, December 31, Beginning balance $ 351 $ 435 Tax expense recognized to consolidated statements of operations (67) (79) Tax benefit (expense) recognized to other comprehensive income (loss) (18) 3 Uncertain tax positions and others — (8) Ending balance $ 266 $ 351 As of December 31, 2022 and 2021, the Company’s current tax receivables were $1 million and $0, respe ctively, related to its subsidiaries in Europe. As of December 31, 2022 and 2021, the Company’s current income tax payable of $14 million and $14 million, respectively, is composed of $2 million, $3 million, $9 million and $2 million, $3 million, $9 million for entities incorporated in Europe, the United States/Cayman Islands and Singapore, respectively. The current income tax payable amounts include the following uncertain tax provisions: $0 in the United States for December 31, 2022 and $0 for December 31, 2021; $8 million and $9 million in Singapore for December 31, 2022 and 2021; $3 million and $0 in Europe for December 31, 2022 and 2021 |
Receivables, Prepayments and Ot
Receivables, Prepayments and Other Assets | 12 Months Ended |
Dec. 31, 2022 | |
Trade and other current receivables [abstract] | |
Receivables, Prepayments and Other Assets | Receivables, Prepayments and Other Assets (in millions) December 31, 2022 December 31, 2021 Current: Trade receivables, other than related parties (1) $ 824 $ 872 Other receivables 497 238 Unbilled accounts receivable (2) 24 43 Receivables from government grant 52 47 Receivables from related parties (Note 28) 11 8 Other current financial assets 79 23 Total $ 1,487 $ 1,231 Non-current: Advances to suppliers (3) 235 199 Non-trade receivables 10 13 Payment in Lieu of Tax (“PILOT”’) Bonds 11 8 Other 25 34 Total $ 281 $ 254 (1) The Company’s trade receivables, other than related parties, are all classified as current and are expected to be collected within one year. The Company’s provision for sales returns was not material for either for the years ended December 31, 2022 or 2021. See the table below for the aging of the Company’s trade receivables, other than related parties. (2) Unbilled accounts receivable represents amounts recognized on revenue contracts less associated advances and progress billings. These amounts will be billed in accordance with the agreed-upon contractual terms or upon shipment of products or rendering services. (3) Primarily represents advances to supplier to offset against future purchases. The following table presents the activities in unbilled accounts receivable as of December 31, 2022 and 2021: (in millions) December 31, December 31, Beginning balance $ 43 $ 62 Revenue recognized during the year 87 44 Amounts invoiced (106) (69) Other — 6 Ending balance $ 24 $ 43 The following table presents the aging of accounts receivable as of December 31, 2022 and 2021: (in millions) December 31, December 31, Receivables neither past due nor impaired $ 708 $ 830 Receivables past due—not impaired individually: Less than 30 days 83 41 31 to 60 days 22 — 61 to 90 days 11 — 90 to 120 days — 1 $ 824 $ 872 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Inventories [Abstract] | |
Inventories | Inventories The Company records inventories at the lower of cost or net realizable value for finished goods, work-in-progress, raw materials, and supplies. The Company makes inventory write-downs on an item-by-item basis, except where it may be appropriate to group similar or related items. (in millions) December 31, December 31, Work in progress $ 1,079 $ 961 Raw materials and supplies 375 260 Inventory reserves (115) (100) Total $ 1,339 $ 1,121 The following table presents the movement in the inventory reserves: (in millions) December 31, December 31, Beginning balance $ 100 $ 243 Additions (1) 88 126 Written-off and scrapped (35) (29) Elimination of reserves upon sale of inventory (38) (240) Ending balance $ 115 $ 100 (1) This includes additional inventory reserve of $26 million arising from the adjustment to cost of revenue recorded by the Company in 2021 in conjunction with the modification of its customer contracts as discussed in Note 4. |
Other Financial Assets And Liab
Other Financial Assets And Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Financial Instruments [Abstract] | |
Other Financial Assets And Liabilities | Other Financial Assets And Liabilities The following foreign currency forward contracts are outstanding at December 31, 2021 and 2022 (in millions, except average foreign currency/US$): Fair Value of Derivative Instruments Derivative Instruments Other Current Financial Assets Other Non-current Financial Assets Other Current Financial Liabilities Other Non-current Financial Liabilities Notional Amount Average Foreign Currency/ US$ Average Strike Price Maturity Outstanding as of December 31, 2021: Forward contracts: Euro forward contracts (receive euros/pay US$) $ 4 $ — $ (38) $ — $ 1,240 0.86 — 2022 - 2023 Singapore dollar forward contracts (receive Singapore$/pay US$) 3 — (3) — 858 1.35 — 2022 Japanese yen forward contracts (receive Japanese yen/pay US$) 2 — (7) — 300 112.77 — 2022 - 2023 Interest rate swaps — — (8) 993 — 0.382% - 1.731% 2023 - 2026 Cross currency swaps (receive euros/pay US$) — — — (4) 551 0.89 3.834% - 4.182% 2024 - 2026 Cross currency swaps (receive Singapore $/pay US$) — — — (4) 109 1.37 1.830% - 1.941% 2028 Commodity hedge 14 2 (1) (1) 96 — — 2022 - 2023 Total $ 23 $ 2 $ (49) $ (17) $ 4,147 Outstanding as of December 31, 2022: Forward contracts: Euro forward contracts (receive Euros/Pay US$) $ 46 $ 3 $ (32) $ — $ 1,203 0.94 — 2023 - 2024 Singapore dollar forward contracts (receive Singapore$/pay US$) 15 — (1) — 496 1.37 — 2023 Japanese yen forward contracts (receive Japanese yen/pay US$) 18 — (20) — 236 127.22 — 2023 - 2024 Interest rate swaps — 42 — — 795 — 0.382% - 1.731% 2023 - 2026 Cross currency swaps (receive euros/pay US$) — 2 — (3) 535 0.89 3.834% - 4.182% 2024 - 2026 Cross currency swaps (receive Singapore $/pay US$) — 51 — — 796 1.37 1.830% - 1.941% 2028 Commodity hedge — — (8) (2) 47 — 512.56 2023 Total $ 79 $ 98 $ (61) $ (5) $ 4,108 The following table presents the fair values and locations of these derivative instruments recorded in the consolidated statements of financial position: Fair Value of Derivative Instruments Assets Derivatives Liabilities Derivatives (in millions) Statement of Financial Position Location Fair Value Statement of Financial Position Location Fair Value As of December 31, 2021: Derivatives designated as hedging instruments - foreign currency forward contracts Other current financial assets $ 6 Other current financial liabilities $ (46) - interest rate swaps Other non-current financial assets Other non-current financial liabilities (8) - cross currency swaps Other non-current financial assets — Other non-current financial liabilities (8) - commodity hedge Other current financial assets 14 Other current financial liabilities (1) Other non-current financial assets 2 Other non-current financial liabilities (1) Derivatives not designated as hedging instruments - foreign currency forward contracts Other current financial assets 3 Other current financial liabilities (2) Total derivatives $ 25 $ (66) As of December 31, 2022: Derivatives designated as hedging instruments - foreign currency forward contracts Other current financial assets $ 69 Other current financial liabilities $ (52) Other non-current financial assets 3 - interest rate swaps Other non-current financial assets 42 Other non-current financial liabilities — - cross currency swaps Other non-current financial assets 53 Other non-current financial liabilities (3) - commodity hedge Other current financial assets — Other current financial liabilities (8) Other non-current financial assets — Other non-current financial liabilities (2) Derivatives not designated as hedging instruments - foreign currency forward contracts Other current financial assets 10 Other current financial liabilities (1) Total derivatives $ 177 $ (66) The following table presents the effect of derivatives designated as hedging instruments on the consolidated statements of operations and comprehensive income (loss) (net of tax): As of December 31, 2022, the estimated amount of loss from cash flow hedges currently retained in consolidated statements of comprehensive income (loss) expected to be reclassified into consolidated statements of operations within the next 12 months is approximately $17 million. (in millions) Amount of Gains (Losses) Recognized in Accumulated OCI on Derivatives (effective Portion) Amount of Gains (Losses) Reclassified from Accumulated OCI to cost of Property, Plant and Equipment Location of Gains (Losses) Reclassified from Accumulated OCI into Income (Effective Portion) Amounts of Gains (Losses) Reclassified from Accumulated OCI into Income (Effective Portion) Location of Gains (Losses) Recognized into Income (Ineffective Portion) Amount of Gain (Losses) Recognized into income (Ineffective Portion) Year ended December 31, 2021 Derivatives designated as hedging instruments— Forward currency forward contracts $ (76) $ (6) Cost of revenue and operating expenses $ 11 Selling, general and administrative expenses $ 1 Derivatives designated as hedging instruments— Interest rate swaps 21 — Finance expense (5) Selling, general and administrative expenses — Derivatives designated as hedging instruments— Cross currency swaps (2) — Cost of revenue and operating expenses (10) Selling, general and administrative expenses (1) Derivatives designated as hedging instruments – Commodity hedge 29 — Cost of revenue and operating expenses 24 Selling, general and administrative expenses — Year ended December 31, 2022 Derivatives designated as hedging instruments— Forward currency forward contracts $ (105) $ (93) Cost of revenue and operating expenses $ (76) Other income (expense) (5) Derivatives designated as hedging instruments— Interest rate swaps 55 — Finance expense 6 Other income (expense) — Derivatives designated as hedging instruments— Cross currency swaps 72 — Cost of revenue and operating expenses — Other income (expense) 4 Derivatives designated as hedging instruments – Commodity hedge (5) — Cost of revenue and operating expenses 26 Other income (expense) (8) The following table presents the effect of derivatives not designated as hedging instruments on the consolidated statements of operations and comprehensive income (loss): (in millions) Location of Gains (Losses) Recognized in Income on Derivative Amount of Gains (Losses) Recognized in Income on Derivative Year ended December 31, 2020 Derivatives not designed as hedging instruments—foreign currency forwards contracts Selling, general and administrative expenses $ 6 Year ended December 31, 2021 Derivatives not designed as hedging instruments—foreign currency forwards contracts Selling, general and administrative expenses $ (17) Year ended December 31, 2022 Derivatives not designed as hedging instruments—foreign currency forwards contracts Other income (expense) $ (22) |
Cash And Cash Equivalents
Cash And Cash Equivalents | 12 Months Ended |
Dec. 31, 2022 | |
Statement of cash flows [abstract] | |
Cash And Cash Equivalents | Cash And Cash Equivalents (in millions) December 31, December 31, Cash balances on hand and at banks 990 764 Investments in money market funds 953 2,150 Time deposits 401 25 Other cash and cash equivalents 8 — Total $ 2,352 $ 2,939 Movements in cash and cash equivalents are presented in the Company’s consolidated statements of cash flows. The following are the reconciliation of assets, liabilities and equity arising from financing activities: Non-cash changes (in millions) As of December 31, 2020 Assets (Liabilities and Equity) Cash Flows Inflows/ (Outflows) Addition Foreign exchange movement Others As of December 31, 2021 Assets (Liabilities and Equity) Restricted cash $ 36 $ (34) $ — $ — $ (1) $ 1 Government grants receivable (1) 30 (41) 60 (2) — $ 47 Other receivables 42 (41) 1 (1) (2) $ (1) Debt (2,338) 264 — 51 10 $ (2,013) Lease obligations (465) 78 (52) 12 1 $ (426) Loan from shareholder (10,681) 568 — — 10,113 $ — Share capital (10) (1) — — — $ (11) Additional Paid-In Capital (11,708) (1,443) (10,113) — (223) $ (23,487) Total $ (25,094) $ (650) $ (10,104) $ 60 $ 9,898 $ (25,890) Non-cash changes (in millions) As of December 31, 2021 Assets (Liabilities and Equity) Cash Flows Inflows/ (Outflows) Addition Foreign exchange movement Others As of December 31, 2022 Assets (Liabilities and Equity) Restricted cash $ 1 $ — $ — $ — $ — $ 1 Government grants receivable (2) 47 (93) 18 (1) 81 $ 52 Other receivables (1) — — — — $ (1) Debt (2,013) (670) (6) 10 168 $ (2,511) Lease obligations (426) 89 (18) 9 1 $ (345) Share capital (11) — — — — $ (11) Additional Paid-In Capital (3) (23,487) (168) — — (176) $ (23,831) Total $ (25,890) $ (842) $ (6) $ 18 $ 74 $ (26,646) (1) Government grant receivable amounting to $47 million is included in receivables, prepayments and other assets in the consolidated statements of financial position as of December 31, 2021 (2) Government grant receivable amounting to $52 million is included in receivables, prepayments and other assets in the consolidated statements of financial position as of December 31, 2022 (3) On October 1, 2021, the Company’s board approved the conversion of the Shareholder Loans (defined below) to additional paid-in-capital, and on October 3, 2021, the Company executed an agreement with Mubadala Investment Company PJSC (“Mubadala”) to convert the remaining $10.1 billion of the Shareholder Loan balance into additional paid-in-capital (“the Conversion”). The Conversion did not have an impact on shares outstanding or have any dilutive effects, as no additional shares were issued. Geographical concentration of cash and cash equivalents is as follows: (in millions) December 31, December 31, United States of America $ 484 $ 1,357 Republic of Singapore 1,775 1,485 Other 93 97 Total $ 2,352 $ 2,939 |
Issued Capital and Reserves
Issued Capital and Reserves | 12 Months Ended |
Dec. 31, 2022 | |
Share Capital, Reserves, and Other Equity Interest [Abstract] | |
Issued Capital and Reserves | Issued Capital and Reserves Share Capital — On September 12, 2021, the Company effected a 1-for-2 reverse share split, which was approved by our board of directors on September 9, 2021. On October 27, 2021, the Company completed an initial public offering, issuing 30,250,000 ordinary shares, as well as 1,595,744 ordinary shares in a concurrent private placement agreement. As of December 31, 2022, there were 1,300 million ordinary shares and 200 million preferred shares with a par value of $0.02 authorized, and 548 million ordinary shares issued and outstanding. Additional Paid-In Capital —Additional paid-in capital represents the excess of assets less liabilities contributed to GLOBALFOUNDRIES by shareholders over the share capital issued in exchange for those contributions and share-based compensation charges for share-based payments. Reserves All other reserves as stated in the consolidated statements of changes in equity: Hedging Reserve —The cash flow hedge reserve contains the effective portion of the cash flow hedge relationships incurred as at the reporting date. Foreign Currency Translation Reserve —The foreign currency translation reserve is used to record exchange differences arising from the translation of AMTC and BAC’s financial statements for consolidation purpose. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2022 | |
Borrowing costs Abstract [Abstract] | |
Long-Term Debt | Long-Term Debt (in millions) December 31, December 31, Current: Term loans $ 223 $ 297 Non-current: Term loans 2,288 1,716 Total $ 2,511 $ 2,013 The above balances are net of $12 million and $18 million of unamortized debt issuance costs for the years ended December 31, 2022 and 2021, respectively. Movements in interest bearing borrowings during the reporting period were as follows: (in millions) December 31, 2022 December 31, 2021 Opening balance $ 2,013 $ 2,338 New loans and borrowings 971 618 Repayments (301) (882) Other (172) (61) Ending balance $ 2,511 $ 2,013 Terms and Debt Repayment Schedule The following table summarizes term loan facilities. The below arrangements are all considered to be secured. Description Currency Nominal Interest Interest Payment Terms Principal Payment Terms Year of Maturity 2022 Carrying Amount 2021 Carrying Amount 2018 Tool Equipment Purchase and Lease Financing (1) USD LIBOR + 1.60% Quarterly Quarterly 2023 19 75 2019 Tool Equipment Purchase and Lease Financing (2) USD LIBOR + 1.75% Quarterly Quarterly 2024 85 84 2019 USD Dresden Equipment Financing (3) USD LIBOR + 1.75% Semi-Annual Semi-Annual 2024 36 36 2020 USD Equipment Financing (4) USD LIBOR + 1.90% Quarterly Quarterly 2025 59 59 2019 EUR Dresden Equipment Financing (3) EUR EURIBOR + 1.75% Semi-Annual Semi-Annual 2026 13 14 Various (5) EUR, USD Various Various Various 2024-2026 11 29 Current total 223 297 Non-current: 2019 Tool Equipment Purchase and Lease Financing (2) USD LIBOR + 1.75% Quarterly Quarterly 2024 21 106 2019 USD Dresden Equipment Financing (3) USD LIBOR + 2.25% Semi-Annual Semi-Annual 2026 108 144 2020 USD Equipment Financing (4) USD LIBOR + 1.90% Quarterly Quarterly 2025 93 152 USD Term Loan A USD LIBOR + 2.90% Quarterly Semi-Annual 2025 649 647 EUR Term Loan A EUR EURIBOR + 2.60% Quarterly Semi-Annual 2025 89 94 2019 EUR Dresden Equipment Financing (3) EUR EURIBOR + 1.75% Semi-Annual Semi-Annual 2026 387 423 2021 SGD EDB Loan SGD 1.40% Semi-annual Semi-annual 2041 923 90 Various EUR, USD Various Various Various 2024-2027 18 60 Non-current total 2,288 1,716 Total $ 2,511 $ 2,013 (1) On March 2, 2018, GLOBALFOUNDRIES SINGAPORE PTE, LTD. (“GFS”) entered into several Equipment Purchase and Lease Agreements with four banks to sell and leaseback certain semiconductor manufacturing equipment located in GFS’ Fabs in Singapore for a total of $375 million. The total minimum lease payments amount to $375 million, to be paid in equal quarterly installments through March 1, 2023. (2) On January 21, 2019, GFS entered into several Equipment Purchase Agreements and Lease Agreements with five banks to sell and leaseback certain semiconductor manufacturing equipment located in GFS’ Fabs in Singapore for a total of $425 million. (3) On October 31, 2019, the Company, GLOBALFOUNDRIES Dresden Module One Limited Liability Company & Co., KG. and GLOBALFOUNDRIES Dresden Module Two Limited Liability Company & Co. KG. entered into a term facilities agreement with Bank of America Merrill Lynch International Designated Activity Company and ING Bank, a branch of ING-DIBA AG, as coordinating mandated lead arrangers, and Bank of America Merrill Lynch International Designated Activity Company as facility and security agent, which provides a maximum incremental facility commitment totaling $750 million secured by certain qualifying equipment assets. (4) On April 23, 2020, GLOBALFOUNDRIES SINGAPORE PTE, LTD. entered into several Equipment Purchase Agreements and Lease Agreements with four banks to sell and leaseback certain semiconductor manufacturing equipment located in GFS’ fabrication facilities in Singapore for a total of $300 million. Accounts Receivable Factoring —On February 17, 2021, the Company entered into agreements to amend and restate the terms of the original Accounts Receivable Factoring arrangements to factor certain of its accounts receivable up to a maximum outstanding amount of $92 million. The Company agreed to pay financing costs of LIBOR plus 0.90%. The balance as of December 31, 2022 and 2021 was $0 and $16 million, respectively. 2021 SGD EDB Loan —On September 3, 2021, the Company entered into a loan agreement with Singapore Economic Development Board (“EDB”), which provided loan facilities with maximum drawdown of $1,149 million (SGD 1,541 million) at a fixed nominal interest rate of 1.4%. The difference between the nominal interest rate of the loan and the market interest rate for an equivalent loan is recognized as a government grant. The loan matures on June 1, 2041, with interest-only payments for the first 5 years and principal repayments commence thereafter, payable on a semi-annual basis. As of December 31, 2022, the Company’s total draw down was $1,082 million, of which $111 million was drawn down in 2021. As of December 31, 2022, $923 million was recorded in long-term debt based on an effective interest rate of 3.2% and $184 million was recorded in deferred income from government grants. 5-year Revolving and Letter of Credit Facilities Agreement —On October 13, 2021, the Company entered into an amendment to the 5-year Revolving and Letter of Credit Facilities Agreement to increase the commitment to $1,000 million. The following table summarizes unutilized credit facilities available to the Company to maintain liquidity to fund operations: + (in millions) December 31, 2022 December 31, 2021 SGD EDB Loan 42 1,029 Revolving Credit Facility 1,012 1,009 Singapore Factoring — 75 Uncommitted Credit Facilities (1) 64 31 Total $ 1,118 $ 2,144 (1) Credit facility made available to the Company, but the lender is not obligated to loan funds. Assets pledged as security — Various assets have been pledged to secure borrowings under pledged agreements for the Company. Cash and cash equivalents, trade accounts receivables, property, plant and equipment, inventories, and financial assets have been pledged to secure borrowings u nder pledged agreements for the Company. The Company is not allowed to pledge these assets as security for other borrowings or to sell them outside normal course of business. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases The Company has various lease agreements for certain of its offices, facilities, and equipment. Leases may include one or more options to renew. Renewals are not in the determination of the lease term unless the renewals are deemed to be reasonably certain at lease commencement. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. All leases were measured under a single criterion with the exception of those with terms not exceeding 12 months and low-value leases. (in millions) December 31, December 31, Amortization of right-of-use assets $ 82 $ 81 Interest expense on lease liabilities 23 27 Short-term and low-value leases expense 1 1 Total net lease cost $ 106 $ 109 Weighted average remaining lease term 7.18 years 6.51 years Weighted average discount rate 4.75 % 6.65 % The following is a schedule, by years, of maturities of lease liabilities as of December 31, 2022 and 2021: December 31, 2022 December 31, 2021 (in millions) Minimum Lease Payments Present Value of Payments Minimum Lease Payments Present Value of Payments Within 1 year $ 92 $ 75 $ 157 $ 135 2-5 years 184 146 232 191 After 5 years 151 124 123 100 $ 427 $ 345 $ 512 $ 426 Less: amounts representing finance charges (82) — (86) — Present value of minimum lease payments $ 345 $ 345 $ 426 $ 426 Current 75 135 Non-current 270 291 $ 345 $ 426 Supplemental cash flow information related to leases is as follows: (in millions) December 31, December 31, Cash flows used in operating activities: Payments of short-term and low-value leases $ (1) $ (1) Interest paid (23) (27) Cash flows used in financing activities: Payment of lease obligations (89) (78) The following table summarizes the movement of right-of-use assets which primarily relates to building and leasehold improvements during the years ended December 31, 2022 and 2021 is as follows: (in millions) December 31, December 31, Beginning balance $ 305 $ 292 Additions $ 59 94 Amortization (82) (81) Ending balance $ 282 $ 305 |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2022 | |
Other Provisions, Contingent Liabilities, and Contingent Assets [Abstract] | |
Provisions | Provisions The movement in provision for asset retirement obligations and restructuring charges during the years ended December 31, 2022 and 2021 is as follows: (in millions) December 31, December 31, Beginning balance $ 349 $ 353 Arising during the period 2 — Accretion cost (4) (1) Restructuring charges 91 — Utilized (1) (52) (3) Released to the consolidated statements of operations (2) $ (88) — Ending balance $ 298 $ 349 (1) Includes $40 million related to asset retirement obligations,$7 million related to sale of the EFK business, and $5 million related to restructuring charges. (2) Relates to the derecognition of asset retirement obligation related to the sale of the EFK business. The Company records a provision for site restoration costs as required by legal and contractual obligations if assessed to be probable that it will incur such costs. Because of the long-term nature of the liability, the greatest uncertainty in estimating the provision is the costs that will be incurred. The Company has estimated costs based on currently available information provided by experts about the extent of restoration work required. The provision has been calculated using a discount rate of 1.58% to 4.04% (2021: (1.59)% to 1.95%), which is the risk-free rate in the jurisdiction of the liability. The site restoration costs are expected to be incurred on site abandonment for its owned property and on lease expiration for its leasehold land. The expected timing of incurring site restoration costs is consistent with the remaining useful lives of the underlying property, plant and equipment. See Note 8, Restructuring, for information related the Company’s restructuring initiative. |
Government Grants
Government Grants | 12 Months Ended |
Dec. 31, 2022 | |
Government grants [Abstract] | |
Government Grants | Government Grants The following table presents the movement in deferred income from government grants for the years ended December 31, 2022 and 2021: (in millions) December 31, December 31, Beginning balance $ 176 $ 169 Received/receivable during the period 270 40 Released to the consolidated statements of operations (42) (33) Ending balance $ 404 $ 176 Current 110 29 Non-current 294 147 $ 404 $ 176 Government grants were recognized in the consolidated statements of operations and comprehensive income (loss) as follows: (in millions) December 31, December 31, December 31, Cost of revenue $ 30 $ 33 $ 49 Research and development expenses 11 — 2 Selling, general and administrative 1 — — Total balance $ 42 $ 33 $ 51 The Company has received government support in the form of investment grants, research and development subsidies, refundable credits and miscellaneous receipts for employee support. Amount receivable from government but not yet received has been included in receivables, prepayments and other assets. Certain investment grants are subject to forfeiture in declining amounts over the life of the agreement if the Company does not maintain agreed upon conditions specified in the relevant subsidy agreements. The Company continues to comply with the government grant conditions mainly relating to qualifying property, plant and equipment and employment levels. |
Trade Payables and Other Liabil
Trade Payables and Other Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Trade Payables and Other Liabilities | Trade Payables and Other Liabilities (in millions) December 31, December 31, Current: Trade payables $ 532 $ 551 Accrued expenses 573 603 Contract liabilities (1) 592 533 Advances and deposits (2) 93 309 Payable for PPE and Intangible Assets 961 472 Other (3) 98 118 $ 2,849 $ 2,586 Non-current: Payable for Intangible Assets 92 45 Contract liabilities (1) 1,326 1,368 Deferred tax liabilities 26 2 Other (3) 30 30 $ 1,474 $ 1,445 (1) Contract liabilities comprises contract liabilities for payments received in advance of the satisfaction of performance obligations for wafers, as well as non-recurring engineering services. (2) Advances and deposits include advances from customers of $73 million (2021: $118 million) collected for purchase orders. (3) Other includes other financial liabilities and non-current advances and deposits. See Note 17 for further details on other financial liabilities. . The following table presents the activities in accounts payable as of December 31, 2022 and 2021: (in millions) December 31, December 31, Beginning contract liabilities balance $ 1,901 $ 135 Cash receipts in advance of satisfaction of performance obligations 1,189 1,894 Released to the consolidated statements of operations and comprehensive income (loss) (1) (951) (128) Amounts credited to customers (221) — Ending contract liabilities balance $ 1,918 $ 1,901 Current 592 533 Non-current 1,326 1,368 $ 1,918 $ 1,901 (1) Of revenue released to the consolidated statements of operations and comprehensive income (loss) for the years ended December 31, 2022 and 2021, $522 million and $48 million, respectively were included in the beginning balance of the contract liabilities. |
Employee Benefits Plans
Employee Benefits Plans | 12 Months Ended |
Dec. 31, 2022 | |
Employee Benefits [Abstract] | |
Employee Benefits Plans | Employee Benefits Plans Retirement Savings Plans —The Company has a retirement savings plan, commonly known as a 401(k) plan, which allows participating employees in the United States to contribute a portion of their pre-tax salary up to Internal Revenue Service limits. The Company matches employee contributions dollar for dollar for the first 3% of participants’ contributions and $0.50 cents on each dollar of additional 3% of participants’ contributions, to a maximum of 4.5% of eligible compensation. The Company’s contributions to the 401(k) plan were $32 million, $31 million and $32 million for the years ended December 31, 2022, 2021 and 2020, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Other Provisions, Contingent Liabilities, and Contingent Assets [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments —The Company’s unconditional purchase commitments are as follows: (in millions) December 31, December 31, Contracts for capital expenditures $ 2,774 $ 2,995 Contracts for operating expenditures 3,587 3,405 $ 6,361 $ 6,400 Due within the next 12 months $ 2,732 $ 3,543 In addition to the above, the Company obtained letters of credit to primarily guarantee payments for utility supplies and foreign statutory payroll related charges. The Company has obtained letters of credit of $20 million and $20 million at December 31, 2022 and 2021, respectively, and bank guarantees of $4 million and $3 million at December 31, 2022 and 2021, respectively. The Company has a patent license agreement with LSI Technology Corporation (“LSI”) under which the parties grant to one another a license to use certain of each other’s patents. Under the terms of the patent license agreement, the Company may provide wafer capacity in lieu of payment for royalties. Such royalties under the patent license agreement are waived until such time the interest of LSI in SMP falls below 49%. In exchange, the Company has waived capacity shortfall obligations from LSI. Should the interest of LSI in SMP fall below 49%, the Company may be required to make royalty payments to LSI under this patent license agreement. The Company has not made any royalty payments to LSI. The patent license agreement continues for as long as the joint venture agreement between the parties remains. In 2017, we entered into a set of agreements with a joint venture partner related to the establishment of a joint venture in China to establish and operate a greenfield wafer production site. The parties contemplated that the manufacturing operations would be implemented in two p hases. Due to a variety of factors, including unanticipated market conditions, the manufacturing operations did not proceed as planned and the parties have been working to wind-down operations of the joint venture. On April 26, 2021, we received a letter from our joint venture partner requesting that we share in its alleged losses and related costs incurred to support the joint venture. We recorded a provision of $34 million in June 2021. We engaged in negotiations with our joint venture partner to settle the claim and on November 2021 we resolved the claims consistent with the recorded provision. In August 2022, all shares owned by our joint venture partner have been transferred to GF Asia Investment. On April 28, 2021, IBM sent us a letter alleging for the first time that we did not fulfill our obligations under the contracts we entered into with IBM in 2014 and 2015 associated with our acquisition of IBM’s Microelectronics division. IBM asserted that we engaged in fraudulent misrepresentations during the underlying negotiations, and claimed we owed them $2.5 billion in damages and restitution. On June 7, 2021, the Company filed a complaint with the New York State Supreme Court (the “Court”) seeking a declaratory judgment that the Company did not breach the relevant contracts. IBM subsequently filed its complaint with the Court on June 8, 2021. On September 14, 2021, the Court granted our motion to dismiss IBM’s claims of fraud, unjust enrichment and breach of the implied covenant of good faith and fair dealing. IBM appealed the dismissal of its fraud claim, and on April 7, 2022, the New York Appellate Division reversed the Court’s decision. The Company believes, based on discussions with legal counsel, that the Company has meritorious defenses against IBM’s claims. The Company disputes IBM’s claims and intends to vigorously defend against IBM. We do not currently anticipate this proceeding to have a material impact on our results of operations, financial condition, business and prospects |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings per share [abstract] | |
Earnings Per Share | Earnings Per Share Basic and diluted earnings (loss) per share has been calculated for the years ended December 31, 2022, 2021, and 2020 as follows: 2022 2021 2020 (in millions) Net income (loss) available to equity shareholders of the Company $ 1,448 $ (250) $ (1,350) Weighted average common shares outstanding Basic 539 506 500 Diluted 552 506 500 Total basic and diluted earnings per share attributable to equity shareholders Basic $ 2.69 $ (0.49) $ (2.70) Diluted $ 2.62 $ (0.49) $ (2.70) |
Related Party Disclosures
Related Party Disclosures | 12 Months Ended |
Dec. 31, 2022 | |
Related party [Abstract] | |
Related Party Disclosures | Related Party DisclosuresThe consolidated financial statements include the following subsidiaries which are all wholly owned, except for Advanced Mask Technology Centre GmbH & Co. KG, Maskhouse Building Administration GmbH & Co. KG, Advanced Mask Technology Center Verwaltungs GmbH, and Maskhouse Building Administration Verwaltungs GmbH: Subsidiary Jurisdiction of Incorporation or Organization December 31, 2022 December 31, 2021 December 31, 2020 GLOBALFOUNDRIES Dresden Module One LLC United States X X X GLOBALFOUNDRIES Dresden Module Two LLC United States X X X GLOBALFOUNDRIES Innovation Investments LLC United States X X X GLOBALFOUNDRIES Investments LLC United States X X X GLOBALFOUNDRIES U.S. Inc. United States X X X GLOBALFOUNDRIES U.S. 2 LLC United States X X X GLOBALFOUNDRIES Borrower LLC United States X X X Hudson Valley Research Park Sewage Works Corporation United States X X X Hudson Valley Research Park Water-Works Corporation United States X N/A N/A GF Power LLC United States X N/A N/A GLOBALFOUNDRIES Finance Inc. Cayman Islands X N/A N/A GLOBALFOUNDRIES France SAS France X N/A N/A GLOBALFOUNDRIES Dresden Module One Holding GmbH Germany X X X GLOBALFOUNDRIES Dresden Module One LLC & Co. KG Germany X X X GLOBALFOUNDRIES Dresden Module Two LLC & Co. KG Germany X X X GLOBALFOUNDRIES Dresden Module Two Holding GmbH Germany X X X GLOBALFOUNDRIES Management Services LLC & Co. KG Germany X X X Advanced Mask Technology Centre GmbH & Co. KG (50%) Germany X X N/A Maskhouse Building Administration GmbH & Co. KG (50%) Germany X X N/A Advanced Mask Technology Center Verwaltungs GmbH (50%) Germany X X N/A Maskhouse Building Administration Verwaltungs GmbH (50%) Germany X X N/A GLOBALFOUNDRIES Europe Sales & Support GmbH Germany X X N/A GLOBALFOUNDRIES Engineering Private Limited India X X X GLOBALFOUNDRIES Japan Ltd. Japan X X X GLOBALFOUNDRIES Malaysia SDN. BHD. Malaysia X N/A N/A GLOBALFOUNDRIES Netherlands Cooperatief U.A. The Netherlands X X X GLOBALFOUNDRIES Netherlands Holding B.V. The Netherlands N/A N/A X GLOBALFOUNDRIES Netherlands B.V. The Netherlands N/A N/A X GLOBALFOUNDRIES Bulgaria EAD Bulgaria X X X GF Asia Investments Pte. Ltd. Singapore X X X GF Asia Sales Pte. Ltd. Singapore X X N/A GLOBALFOUNDRIES Singapore Pte. Ltd. Singapore X X X GLOBALFOUNDRIES Taiwan Ltd. Taiwan X X X GLOBALFOUNDRIES Europe Ltd. United Kingdom X X X GA (Chengdu) Technology Co., Limited China X X X GLOBALFOUNDRIES China (Beijing) Co., Limited China X X X GLOBALFOUNDRIES China (Shanghai) Co., Limited China X X X Nanjing APD Technologies Co. Ltd. China N/A X X Related parties represent associated companies, the shareholder, directors and key management personnel of the Company and entities controlled, or significantly influenced by such parties. Pricing policies and terms of these transactions are approved by the audit, risk and compliance committee or the Company’s management, as applicable. Below are the related parties which the Company has entered into transactions with: December 31, December 31, Related Party Name SMP Joint venture Joint venture Mubadala Treasury Holding Company (“MTHC”) Shareholder entity Shareholder entity Mubadala Technology Investments LLC (“Mubadala Technology”) Shareholder entity Shareholder entity Related parties represent associated companies, the shareholder, directors and key management personnel of the Company and entities controlled, or significantly influenced by such parties. Pricing policies and terms of these transactions are approved by the Company’s management. Balances with related parties included in the consolidated statements of financial positions are as follows: December 31, 2022 December 31, 2021 (in millions) Due from Due to Due from Due to SMP $ 11 $ 10 $ 8 $ 9 Total (1) $ 11 $ 10 $ 8 $ 9 (1) The total amounts of $11 million and $8 million due from related parties as of the years ended December 31, 2022 and 2021, respectively, has been included in receivables, prepayments and other assets (see Note 15). The total amounts of $10 million and $9 million due to related parties’ balance for the years ended December 31, 2022 and 2021, respectively, has been included in trade and other payables (see Note 24). The following table presents the related party transactions included in the consolidated statements of operations: (in millions) December 31, December 31, December 31, Purchases and recharges from: SMP (1) $ 60 $ 60 $ 58 $ 60 $ 60 $ 58 Other transactions with: SMP (reimbursement of expenses and contribution of tools) $ 52 $ 45 $ 47 Mubadala Technology (reimbursement of expenses) $ — $ 3 $ 1 $ 52 $ 48 $ 48 (1) Purchases from SMP were primarily comprised of wafers. Terms and Conditions of Transactions with Related Parties Outstanding balances at the year-end are unsecured, interest free, repayable on demand and settlement occurs in cash. The Company has not recorded any allowance of receivables relating to amounts owed by related parties for the years ended December 31, 2022 and 2021. This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates. Transactions with Shareholder: Shareholder Loan Agreement—The Company, as a borrower, entered into loan facilities with its shareholder in 2012 to 2016 (collectively the “Shareholder Loans”). The Shareholder Loans were non-interest bearing and principal repayment, in whole or in part, was entirely at the Company’s discretion as explicitly stated in the loan agreement. The Shareholder Loans were subordinated to any claims of other unsubordinated and subordinated creditors, including beneficiaries under guarantees issued, of the Company. The loans had no maturity date and remained outstanding until the loans were paid in full. Further, there were no contingent settlements in the agreements. Since the Shareholder Loans did not contain any contractual obligations to deliver cash, but rather allowed the Company to make repayment at its absolute discretion and further prohibited the shareholder from demanding repayment, the Company treated the Shareholder Loans as equity. The Company repaid $568 million during the year ended December 31, 2021. On October 1, 2021, the Company’s board approved the conversion of the Shareholder Loans to additional paid-in-capital, and on October 3, 2021, the Company executed an agreement with Mubadala Investment Company PJSC (“Mubadala”) to convert the remaining $10.1 billion of the Shareholder Loan balance into additional paid-in-capital (the ”Conversion”). The Conversion did not have an impact on shares outstanding or have any dilutive effects, as no additional shares were issued. Compensation of Key Management Personnel The compensation of key management personnel during the following years were as follows: (in millions) 2022 2021 2020 Chief Executive Officer and Chief Financial Officer Short-term benefits $ 5 $ 8 $ 11 Share-based payments 19 42 — Board of Directors 5 3 1 $ 29 $ 53 $ 12 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-based payment arrangements [Abstract] | |
Share-Based Compensation | Share-Based Compensation The Company incurred share-based compensation expense of $173 million, $223 million, and $1 million the years ended December 31, 2022, 2021 and 2020, respectively. As of December 31, 2022 and 2021, the additional paid-in capital related to the share proceeds amounted to $163 million and $0, respectively. The Company incurred $10 million and $5 million of payroll taxes associated with the share-based compensation expense for the years ended December 31, 2022 and 2021, respectively. As of December 31, 2022 and 2021, the Company has 2,826,758 shares and 2,457,663 shares respectively, available for future grant under the 2018 Share Incentive Plan. Under the 2021 Equity Compensation Plan, the Company has 13,648,116 shares available for future grant as of December 31, 2022. RSUs In 2022, the Company granted RSUs under the 2021 Equity Compensation Plan. The RSUs have a time-based vesting requirement, which provides that the RSUs will generally vest in three annual installments, with 33.33% vesting on each one-year anniversary of the vesting commencement date subject to the employee’s continued employment with the Company. In 2021, the Company granted restricted share units (“RSUs”) under the 2018 Share Incentive Plan. The RSUs have a time-based vesting requirement, which provides that the RSUs will generally vest in four Number of RSUs Weighted average grant date fair value Outstanding as of December 31, 2020 — $ — Granted 851,530 $ 39.56 Forfeited (4,100) $ 34.46 Outstanding as of December 31, 2021 847,430 $ 39.59 Granted 3,416,545 $ 57.09 Forfeited (314,158) $ 55.36 Exercised (738,387) $ 49.51 Outstanding as of December 31, 2022 3,211,430 $ 54.39 Prior to the IPO, the value of the RSUs was determined by the Company’s Board of Directors. Because there had been no public market for the ordinary shares, the Board of Directors determined the fair value at the time of grant of the RSU by contemporaneous valuations performed by unrelated third-party valuation firms as well as a number of objective and subjective factors including valuation of comparable companies, operating and financial performance, the lack of liquidity of capital stock and general and industry specific economic outlook, among other factors. As of December 31, 2022, 2021 and 2020, there was $88 million, $26 million, and $0, respectively, of total unrecognized compensation cost related to outstanding RSUs. PSUs In 2022, the Company granted performance stock units (“PSUs”) under the 2021 Equity Compensation Plan. to certain senior level employees. Each PSU represents a contingent right to receive shares of the Company’s stock if the Company meets certain performance measures over the requisite performance period. The PSU awards entitle recipients to receive, upon vesting, a number of shares that ranges from 0% to 200% of the number of PSUs awarded, depending on the level of achievement of the specified performance conditions. The PSUs vest subject to achievement of a performance target based on an absolute return on invested capital (“ROIC”) and relative total shareholder return (“TSR”) versus the SOX Index and will vest over 2 year and 3 year performance periods subject to the grantee remaining employed by the Company through the end of the applicable performance period. Number of PSUs Weighted average grant date fair value Outstanding as of December 31, 2021 — $ — Granted 571,277 70.85 Forfeited (34,082) $ 70.91 Outstanding as of December 31, 2022 537,195 $ 70.91 The Company uses the Monte Carlo simulation model to estimate the fair value of the PSUs at the date of grant. The equity volatility was determined based on the historical volatilities of comparable publicly traded companies over a look back period of 2.74 years, commensurate with the remaining term of the PSUs. The risk-free interest rate is based on the United States Treasury with a remaining term equivalent to the remaining performance measurement period. Dividends are not paid on the Company’s stock. The assumptions used to value the Company’s PSUs granted during the period presented and their expected lives were as follows: December 31, 2022 Expected dividend yield — Expected volatility 45.50% Risk-free interest rate 2.55% Compensation expense is recognized for the PSU awards based on a graded attribution basis over the vesting period. As of December 31, 2022, there was $24 million of total unrecognized compensation expense related to the PSUs. Share Options In 2017, the Company approved the Share Incentive Plan, which was intended to attract and retain talented employees and align shareholder and employee interests. Share options under the Share Incentive Plan vested over a five In 2019 the Company offered to exchange the share options under the Share Incentive Plan with new share options under the “2018 Share Incentive Plan,” under which the Company may grant up to 25 million options to purchase shares in the Company with an exercise price of $10.00 per share. The options vest based on service over four five options held by US taxpayers to be the calendar year end after or within the year of vest. The options that remain outstanding at expiration will be auto-exercised through the broker. The share options are effective for a term of 10 years from the grant date. Because the vesting and exercisability of these share options were dependent on a qualified liquidity event, the Company had to assess the probability of such an event in order to determine the expenses related to the share-based payments for the period. On June 30, 2021, the Company deemed an IPO to be probable under IFRS. Upon the tender offer, the Company measured the pre-modification value of the old share options and compared that to the fair value of the new share options using the Black-Scholes option pricing model. The equity volatility was determined based on the historical volatilities of comparable publicly traded companies over a period equal to the expected average share-based payments life. The risk-free rate of interest was interpolated from the U.S. Constant Maturity Treasury rate curve to reflect the remaining expected life of share options. The fair value of the ordinary shares underlying the stock options has historically been determined by the Company’s Board of Directors. Because there had been no public market for the ordinary shares, the Board of Directors determined the fair value of the ordinary shares at the time of grant of the option by contemporaneous valuations performed by unrelated third-party valuation firms as well as a number of objective and subjective factors including valuation of comparable companies, operating and financial performance, the lack of liquidity of capital stock and general and industry specific economic outlook, among other factors. The Company did not grant any stock options in 2022. The assumptions used to value the Company’s options granted and their expected lives during 2021, were as follows: December 31, 2021 Expected volatility 45.00 % Expected term 4.5 years Risk-free interest rate 0.56 % Estimated ordinary shares valuation $24.64 - $26.04 The following table shows a summary of the share option’s activity for the year ended December 31, 2022 and 2021. Number of Share options Weighted average exercise price per Share Outstanding as of December 31, 2020 22,286,278 $ 10.04 Granted 995,409 $ 10.00 Forfeited (1,532,129) $ 10.00 Outstanding as of December 31, 2021 21,749,558 $ 10.03 Exercised (14,956,321) $ 10.00 Forfeited (532,634) $ 10.00 Outstanding as of December 31, 2022 6,260,603 $ 10.02 Exercisable balance as of December 31, 2022 4,873,406 $ 10.02 The following table summarizes information about employees’ share options outstanding as of December 31, 2022: Outstanding Range of exercise prices Number Outstanding Weighted average remaining contractual life (in years) $ 10.02 6,250,068 2.13 $ 19.07 4,515 4.04 $ 22.54 4,515 4.04 $ 26.00 1,505 4.04 The weighted average remaining contractual life is calculated based on the 10-year contract terms of the options. And the weighted average exercise price is calculated using the exercise price of the outstanding options, which pertain to the 2018 Share Incentive Plan. As of December 31, 2022, 2021 and 2020, there was $7 million, $63 million and $251 million, respectively, of total unrecognized compensation cost related to outstanding stock options. ESPP In connection with, and prior to the consummation of the Company's initial public offering in 2021, the Company's board of directors adopted the GLOBALFOUNDRIES Inc. 2021 Employee Stock Purchase Plan (the “ESPP”). The ESPP is administered by the Company's board of directors or, as applicable, its delegate (the “ESPP Administrator”). The ESPP provides eligible employees with an opportunity to purchase our ordinary shares through payroll deduction of up to 10% of their eligible compensation. A participant may purchase a maximum of 2,500 ordinary shares during a purchase period. Amounts deducted and accumulated by the participant are used to purchase ordinary shares at the end of each six-month purchase period. Participants in the ESPP receive a one-time grant of 50 RSUs upon enrollment in the ESPP. The Company matches 20% of each employee’s contributions on an after-tax basis. Subject to certain equitable adjustments in connection with certain events affecting the outstanding ordinary shares reserved for issuance as awards, the maximum aggregate number of our ordinary shares that may be issued or transferred under the ESPP with respect to awards is 7,500,000 ordinary shares; provided that the share reserve under the ESPP will, unless otherwise determined by our board of directors, automatically increase on January 1 of each year for 8 years commencing on January 1, 2023 and ending on (and including) January 1, 2031 in an amount equal to 0.25% of the total number of ordinary shares outstanding on December 31 of the preceding year. In no event will the number of ordinary shares that may be issued or transferred pursuant to rights granted under the ESPP exceed 18,750,000, in the aggregate, subject to the adjustments described above. As of December 31, 2022, of the Company has issued 533,591 shares under this plan reflecting employees’ contribution and the 20% Company match. |
Financial Risk Management Objec
Financial Risk Management Objectives and Policies | 12 Months Ended |
Dec. 31, 2022 | |
Financial Instruments [Abstract] | |
Financial Risk Management Objectives and Policies | Financial Risk Management Objectives and Policies GLOBALFOUNDRIES has implemented a cash investment policy which determines the overall objectives of the Company’s investment strategy. This policy is aimed to ensure the preservation of capital and the maintenance of sufficient liquidity necessary to fund operations while balancing the needs for appropriate returns. The cash investment policy limits permissible investments and credit quality. The primary objective of the Company’s capital management is to ensure that it maintains a healthy capital ratio in order to support its business and maximize shareholder value. The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions. There are no regulatory imposed requirements on the level of share capital which the Company has to maintain. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company’s policy is to keep the gearing ratio within a range to meet the business needs of the Company. The Company includes within net debt, interest bearing loans and borrowings and obligations under lease less bank balances, cash and marketable securities. Capital includes total equity including non-controlling interests less cumulative changes in fair value. The Company’s interest-bearing loans and borrowings have certain financial covenants. Restrictive covenants in the Company’s credit facilities may prevent the Company from pursuing certain transactions or business strategies, including by limiting the Company’s ability to, in certain circumstances: • incur additional indebtedness; • pay dividends or make distributions; • acquire assets or make investments outside of the ordinary course of business; • sell, lease, license, transfer or otherwise dispose of assets; • enter into transactions with the affiliates; • create or permit liens; • guarantee indebtedness; and • engage in certain extraordinary transactions. As of December 31, 2022, the Company is in compliance with the financial covenants. Risks Arising from Financial Instruments —The main risks arising from the Company’s financial instruments are market risk (including foreign currency risk and interest rate risk), credit risk and liquidity risk. The Board of Directors reviews and approves policies for managing each of these risks which are summarized below. Market Risk —Market price risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise the following types of risk: interest rate risk, foreign currency risk and market price risk. Interest Rate Risk —The Company’s exposure to market risk for changes in interest rates relates primarily to interest-earning financial assets and interest-bearing financial liabilities. The Company’s interest-earning financial assets are mostly highly liquid investments and includes money market funds, marketable securities and time deposits. As these financial assets have weighted-average maturity of less than one year with majority of the assets in fixed-rate instruments, the Company’s exposure to interest risk is not material. The Company’s interest-bearing financial liabilities include fixed and floating rate loans and lease obligations. Floating rate loans bear interest at Base Rate or LIBOR or EURIBOR plus a premium, which is fixed. The Company uses pay-fixed / receive-float interest rate swaps to protect the Company against adverse fluctuations in interest rates and to reduce its exposure to variability in cash flows on the Company’s forecasted floating-rate debt facility to the extent that it is practicable and cost effective to do so. Cash Flow Sensitivity Analysis for Variable Rate Instruments — The sensitivity of net income (loss) in the consolidated statement of comprehensive income (loss) is the effect of the assumed changes in interest rates on the Company’s net income (loss) for one year, based on the floating rate financial assets and financial liabilities held on December 31, 2022. The following table demonstrates the sensitivity of net income (loss) in the consolidated statements of operations to reasonably possible changes in interest rates, with all other variables held constant. Increase/ (Decrease) in Percentages Effects on Loss before Tax December 31, 2020 10 % $ 19 (10) % $ (19) December 31, 2021 10 % $ — (10 %) $ — December 31, 2022 10 % $ 1 (10) % $ (1) Foreign Currency Risk — As a result of foreign operations, the Company has costs, assets and liabilities that are denominated in foreign currencies, primarily the Euro, the Japanese Yen and the Singapore Dollar. Therefore, movements in exchange rates could cause foreign currency denominated expenses to increase as a percentage of net revenue, affecting profitability and cash flows. The Company uses foreign currency forward contracts to reduce exposure to foreign currency fluctuations. The Company also incurs certain portion of its interest expense in Euro and Singapore Dollars, exposing the Company to exchange rate fluctuations between USD and EUR and SGD. The Company uses cross-currency swaps to reduce its exposure to variability from foreign exchange impacting cash flows arising from Company’s foreign currency denominated debt cash flows to the extent than it is practicable and cost effective to do so. Exposure to Currency Risk — The Company’s exposure to foreign currency risk against financial assets and financial liabilities was as follows, based on notional amounts: (in millions) EUR JPY SGD December 31, 2021 Receivables and prepayments $ 161 $ — $ 13 Cash and cash equivalents 45 2 4 Loans and borrowings (14) — (91) Trade and other payables (254) (73) (147) $ (62) $ (71) $ (221) December 31, 2022 Receivables and prepayments $ 120 $ — $ 16 Cash and cash equivalents 48 4 420 Loans and borrowings 45 — — Trade and other payables (388) (73) (149) $ (175) $ (69) $ 287 Credit Risk —Credit risk can be defined as the risk of suffering financial loss from financial instruments due to the failure by a counterparty to fulfill an obligation. Financial instruments that subject the Company to concentrations of credit risk include investments and cash equivalents and foreign exchange transactions. With respect to credit risk arising from the Company’s cash and cash equivalents, the Company’s exposure to credit risk arises from default of the counterparty, with maximum exposure equal to the carrying amount of these instruments. The Company generally does not require collateral to secure accounts receivable. The risk with respect to trade receivables is mitigated by credit evaluations the Company performs on the Company’s customers, the short duration of the Company’s payments terms for the significant majority of the Company’s customer contracts and by the diversification of the Company’s customer base. The expected credit losses of trade and other receivables are not significant. The Company’s five largest customers account for approximat ely 57% and 61% of the outstanding trade receivables balance as of December 31, 2022 and 2021, respectively. Exposure to Credit Risk— The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date was: The aging of financial assets including trade receivables is as follows: Past Due but Not Impaired (in millions) Total Neither past < 30 Days 31-90 Days 91-120 Days Great December 31, 2021 $ 1,067 $ 1,023 $ 42 $ 1 $ 1 $ — December 31, 2022 $ 2,254 $ 2,137 $ 84 $ 33 $ — $ — Liquidity Risk— The Company monitors its risk to a shortage of funds by monitoring its cash flow situation. Ongoing cash forecasting and review processes have been set up to determine the amount of external funding needed. The Company has set up a process of mid- and long-term financial planning. The Company’s financing structure, including maturities of debt, is determined in response to the financing requirements identified with the long-term business planning process. The table below summarizes the maturity profile of the Company’s financial liabilities: (in millions) Carrying Contractual Cash Flows 1 Year or Less 1 to 5 Years Greater than 5 Years Total December 31, 2021 Loans and borrowings $ 2,013 $ 2,205 $ 349 $ 1,736 $ 120 $ 2,205 Lease obligations 426 512 157 232 123 512 Derivative financial liability 66 66 49 17 — 66 Trade payables and other liabilities 1,895 1,895 1,848 47 — 1,895 $ 4,400 $ 4,678 $ 2,403 $ 2,032 $ 243 $ 4,678 December 31, 2022 Loans and borrowings $ 2,511 $ 2,706 $ 229 $ 1,443 $ 1,034 $ 2,706 Lease obligations 345 427 92 184 151 427 Derivative financial liability 66 66 61 5 — 66 Trade payables and other liabilities 2,265 2,265 2,171 63 31 2,265 $ 5,187 $ 5,464 $ 2,553 $ 1,695 $ 1,216 $ 5,464 In preparing the maturity profile, undiscounted payments are calculated based on contractually agreed interest rates where these are fixed, or, in the case of discounted liabilities for leases, where the interest rate is implicit in the financing arrangement. For variable interest arrangements undiscounted payments are determined based on the interest rate prevailing at the reporting date. Assets and Liabilities Measured at Fair Value —The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique: Level 1— observable inputs such as quoted prices in active markets for identical assets or liabilities Level 2— inputs other than quoted prices in active markets in Level 1, such as quoted prices for similar assets or liabilities in active markets, quoted prices for similar assets or liabilities that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability; and Level 3— unobservable inputs for which little or no market data exists, therefore requiring management judgment to develop the Company’s own models with estimates and assumptions. Cash Equivalents - Cash equivalents include investments in government obligation-based money market funds, other money market instruments and interest-bearing deposits with initial or remaining terms of three months or less. The fair value of cash equivalents approximates its carrying value due to the short-term nature of these instruments. Marketable Securities - Marketable securities utilizing Level 1 inputs include U.S. Treasury Securities, U.S. Government Sponsored Enterprises, floating rate securities, money market mutual funds, corporate debt instruments and other Notes, bonds or debt securities issued by non-U.S. sovereign or multilateral entities, as these securities all have quoted prices in active markets. For assets and liabilities that are recognized at fair value on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. Foreign currency forward contracts are classified within Level 2. The fair values of foreign currency forward contracts are determined using quantitative models that require the use of multiple market inputs, including interest rates, prices and maturity dates to generate pricing curves, which are used to value the positions. The market inputs are generally actively quoted and can be validated through external sources. For foreign currency forward contract asset and liability positions with maturity dates which fall between the dates of quoted prices, interpolation of rate or maturity scenarios are used in determining fair values. During the years ended December 31, 2022 and 2021, there were no transfers between Level 1, 2 and Level 3 fair value measurements. Financial Instruments Measured at Fair Value on a Recurring Basis The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis: Fair Value Measurement at Reporting Date Using (in millions) Total Quoted Significant Significant December 31, 2021 Assets: Cash equivalents (1) $ 2,175 $ 2,150 $ 25 $ — Investments in equity instruments (2) $ 17 $ 1 $ — $ 16 Derivatives (3) $ 25 $ — $ 25 $ — Liabilities: Derivatives (3) $ 66 $ — $ 66 $ — Fair Value Measurement at Reporting Date Using (in millions) Total Quoted Significant Significant December 31, 2022 Assets: Cash equivalents (1) $ 961 $ 961 $ — $ — Investments in equity instruments (2) $ 15 $ — $ — $ 15 Investments in marketable securities (3) $ 994 $ 994 $ — $ — Derivatives (4) $ 177 $ — $ 177 $ — Liabilities: Derivatives (4) $ 66 $ — $ 66 $ — (1) Included in cash and cash equivalents on the Company’s consolidated statements of financial position. (2) Included in current and non-current receivables, prepayments and other assets on the Company’s consolidated statements of financial position. (3) Included in current and non-current marketable securities on the Company’s consolidated statements of financial position. (4) Consists of foreign currency forward contracts, interest rate swaps, cross currency swaps and commodity hedge. Included in other current and non-current financial assets on the Company’s consolidated statements of financial position. Financial Instruments Not Recorded at Fair Value on a Recurring Basis Financial instruments not recorded at fair value on a recurring basis include non-marketable equity securities (that have not been re-measured or impaired in the current period), grants receivable, loans receivable, lease obligations and the Company’s short-term and long-term debt. The carrying and fair values of the Company’s financial instruments not recorded at fair value on a recurring basis are presented in the following table, classified according to the categories of loans and receivables (“LaR”) and financial liabilities at amortized cost (“FLAC”): (in millions) December 31, 2022 December 31, 2021 Financial Liability Category Carrying Fair Value Carrying Fair Value Other long-term debt FLAC 2,511 2,414 2,013 2,006 Total $ 2,511 $ 2,414 $ 2,013 $ 2,006 |
Operating Segments Information
Operating Segments Information | 12 Months Ended |
Dec. 31, 2022 | |
Operating Segments [Abstract] | |
Operating Segments Information | Operating Segments Information (a) Operating segments, segment revenue, operating results The Company’s chief operating decision-maker is the Company’s Chief Executive Officer who makes resource allocation decisions and assesses performance based on financial information presented on a consolidated basis. There are no segment managers who are held accountable by the chief operating decision-maker, or anyone else, for operations, operating results, and planning for levels or components below the consolidated unit level. Accordingly, the Company has determined that the Company has a single reportable segment and operating segment structure. (b) Revenue based on customers headquarters, non current assets by geography and major customers’ representing at least 10% of revenue based on customer’s headquarters were as follows: For the year ended December 31, Revenue by Geography 2022 2021 2020 (in millions) United States $ 4,898 $ 3,975 $ 3,368 Europe, the Middle East, and Africa 1,182 805 451 Other 2,028 1,805 1,032 $ 8,108 $ 6,585 $ 4,851 Non-current Assets by Geography 2022 2021 (in millions) United States $ 5,149 $ 5,433 Germany 2,462 1,989 Singapore 3,508 1,547 Other 532 412 Total $ 11,651 $ 9,381 Non-current assets include property, plant, equipment, right-of-use assets, intangible assets, investments in joint venture and associates, restricted cash (non-current) and receivables, prepayments and other assets (non-current). For the year ended December 31, Revenue by Major Customer 2022 2021 2020 (in millions) Amount % Amount % Amount % Customer A $ 746 9 $ 811 12 $ 1,001 21 Customer B $ 1,329 16 $ 995 15 $ 537 11 |
Customer And Supplier Concentra
Customer And Supplier Concentration | 12 Months Ended |
Dec. 31, 2022 | |
Financial Instruments [Abstract] | |
Customer And Supplier Concentration | Customer And Supplier Concentration Significant customers and suppliers are those that account for greater than 10% of the Company’s revenue and purchases in any of the years presented. The Company earned a substantial portion of revenue from two customers in 2022 , 2021 and 2020: Customer A amounted to 9%, 12% and 21% of total revenue, respectively, and Customer B amounted to 16%, 15%, and 11% of total revenue, respectively. As of December 31, 2022 and 2021, the amounts due from Customer A included in accounts receivable were $71 million and $179 million, respectively, and the amounts due from Customer B included in accounts receivable were $163 million and $160 million, respectively. The loss of the significant customers or the failure to attract new customers could have a material adverse effect on our business, results of operations and financial condition for the Company. The Company purch ased 54%, 46% and 52%, of its SOI wafers, a key input into its products, from a single supplier in 2022, 2021 and 2020, respectively. As of December 31, 2022 and 2021, the net amount due to the supplier was $56 million and $63 million, respectively. Any failure in the supplier’s ability to provide SOI wafers could materially and adversely affect |
Summary of Significantt Policie
Summary of Significantt Policies, Judgements, Estimates and Assumptions (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies, Changes In Accounting Estimates And Errors [Abstract] | |
Revenue Recognition | Revenue Recognition —The Company derives revenue primarily from fabricating semiconductor wafers using the Company’s manufacturing processes for the Company’s customers based on their own or third parties’ proprietary integrated circuit designs and, to a lesser extent, from design, mask making, bumping, probing, assembly and testing services. The Company recognizes revenue from contracts with customers by applying the following steps: (i) identify the contracts with the customers; (ii) identify performance obligations in the contracts; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations per the contracts; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The majority of the Company’s revenue is derived from contracts with customers for wafer fabrication and engineering and other pre-fabrication services such as rendering of non-recurring engineering (“NRE”) services and mask production. The Company accounts for a contract with a customer when it has approval and commitment from parties, the rights and obligations of the parties are identified, payments terms are identified, the contract has commercial substance, and collectability of consideration is probable. The Company generally requires a purchase order from all of its customers, to which the Company responds with an order acknowledgement and a copy of the Company’s standard terms and conditions. The Company also enters into master supply agreements (“MSA”) with certain of its customers that may specify additional terms and conditions, such as pricing formulas based on volume, volume discounts, calculation of yield adjustments, indemnifications, transfer of title and risk of loss, and payment terms. Under these agreements, volumes are usually not guaranteed. The Company also requires a purchase order from its customers with which it has MSAs for specific products and quantities. As a result, the Company has concluded that the combination of a purchase order and order acknowledgement, including the Company’s standard terms and conditions, and the MSA, if applicable, create enforceable rights and obligations between the Company and its customers. As discussed in Note 4, a change in cancellation terms in certain wafer orders during the year ended December 31, 2020, resulted in the Company no longer meeting the criteria to account for revenue recognition from contracts with customers over time. As such, the Company recognizes revenue for such modified wafer orders at the point at which control of the wafers is transferred to the customer, which is determined to be at the point of wafer shipment from the Company’s facilities or delivery to the customer location. The Company estimates the variable consideration related to volume rebates and yield adjustments for certain contracts that may be refundable to customers through the issuance of a credit note, and accordingly, recognizes revenue in accordance with the pattern applicable to the performance obligation, subject to a constraint. The Company determines the amounts to be recognized based on the amount of potential refund required by the contract, historical experience and other surrounding facts and circumstances. These potential revenue adjustments are accrued and netted against accounts receivable on the consolidated statements of financial position. A contract asset (“unbilled accounts receivables”) is recognized when the Company has recognized revenue, but not issued an invoice for payment. The Company has determined that unbilled receivables are not considered a significant financing component of the Company’s contracts. Contract assets are included in receivables, prepayments and other assets and transferred to receivables when invoiced ( See Note 15). A contract liability is recognized when the Company receives payments in advance of the satisfaction of performance obligations and are included in deferred revenue on the consolidated statements of financial position (See Note 24).This includes upfront non-refundable capacity access fees under certain long-term supply agreements with customers which are accounted for as additional wafer price considerations and recognized as revenue upon satisfaction of performance obligations for wafers over the expected term of the agreements. Costs to obtain a contract are incremental direct costs incurred to obtain a contract with a customer, including sales commissions, and are capitalized if material. Costs to fulfill a contract include costs directly related to a contract or specific anticipated contract (e.g., certain design costs) that generate or enhance the Company’s ability to satisfy the Company’s performance obligations under these contracts. These costs are capitalized to the extent they are expected to be recovered from the associated contract and are material. |
Investments in Joint Ventures | Invest ments in Joint Ventures —Joint ventures are those entities over whose activities the Company has joint control, established by contractual agreement and requiring unanimous consent for strategic financial and operating decisions. Investments in jointly controlled entities are accounted for using the equity method of accounting (herein after referred to as “equity accounted investees”) and are recognized initially at cost. The consolidated financial statements include the Company’s share of the income and expenses and equity movements of equity accounted investees, after adjustments to align the accounting policies with those of the Company, from the date that joint control commences until the date that joint control ceases. At each reporting date, the Company determines whether there is objective evidence that the investment in the joint venture is impaired. If there is such evidence, the Company calculates the amount of impairment as the difference between the recoverable amount of the joint venture and its carrying value, and then recognizes the loss as a share of profit (loss) of joint ventures and associates in the consolidated statements of operations). |
Cash and Cash Equivalents | Cash and Cash Equivalents —Cash and cash equivalents includes cash on hand and balances at banks, deposits held on call with banks, and financial instruments that are not subject to significant risk of changes in value, are readily convertible into cash and have original maturities of three months or less at the time of purchase. |
trade Accounts Receivable | Trade Accounts Receivable —Trade accounts receivable are recognized initially at fair value. A provision for impairment of trade accounts receivable is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivable. |
Financial Instruments | Financial Instruments: Category of financial instruments and measurement Recognition and Initial Measurement —Trade receivables are initially recognized when they are originated. All other financial assets and financial liabilities are initially recognized when the Company becomes a party to the contractual provisions of the instrument. A financial asset or financial liability is initially measured at fair value including transaction costs that are directly attributable to its acquisition or issuance, and are recognized at fair value in the profit and loss (“FVPL”) are expensed in consolidated statements of operations. A trade receivable without a significant financing component is initially measured at the transaction price. Classification and Measurement —All recognized financial assets are measured based on amortized cost or fair value. The classification is based on two criteria, the Company’s business model for managing the assets and whether the instrument’s contractual cash flows represent solely payments of principal and interest (“SPPI”). The assessment of whether contractual cash flows on debt instruments are solely comprised of principal and interest is made based on the facts and circumstances at the initial recognition of assets. Financial assets include trade and other receivables. These are recorded at amortized cost when such financial assets are held with the objective to collect contract cash flows that meet the SPPI criterion. Financial assets recorded at FVPL comprise unquoted equity instruments which the Company had not irrevocably elected, at initial recognition, to classify at fair value through other comprehensive income (“FVOCI”). Financial assets recorded at FVOCI comprise marketable securities that are quoted debt instruments when such financial assets are held with the objectives of collecting contractual cash flows and meets the SPPI criterion. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses and interest income which are recognized in the consolidated statements of operations. Interest income from these financial assets is included in finance income using the effective interest rate method. Impairment of financial assets The Company will record an allowance for expected credit losses (“ECL”) for all loans to related parties, marketable securities (that are quoted debt instruments), contract assets, and trade receivables and other receivables not recorded at FVPL. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Company expects to receive. The shortfall is then discounted to the asset’s original effective interest rate. The Company estimated its expected credit losses for its contract assets and trade receivables at an amount equal to lifetime credit losses, while marketable securities and other receivables are measured at 12-months ECL if they are determined to have low credit risk at the reporting date. Offsetting of Financial Instruments —Financial assets and financial liabilities are offset and the net amount reported in the consolidated statements of financial position when there is an enforceable legal right to offset the recognized amounts, and there is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously. Fair Value of Financial Instruments —The fair value of financial instruments that are traded in active markets at each reporting date is determined by reference to quoted market prices or dealer price quotations (bid price for long positions and ask price for short positions), without any deduction for transaction costs. For financial instruments not traded in an active market, the fair value is determined using appropriate valuation techniques. Such techniques may include using recent arm’s-length market transactions; reference to the current fair value of another instrument that is substantially the same; a discounted cash flow analysis or other valuation models. Derivative Financial Instruments and Hedge Accounting —The Company uses derivative financial instruments, such as foreign currency forward contracts, interest rate swaps, cross currency swaps and commodity forward contracts to mitigate the risks associated with changes in foreign currency exchange, interest rates and commodity price. The Company does not use derivative financial instruments for trading or speculative purposes. Derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value at each reporting date. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. In applying its strategy, from time to time, the Company uses foreign currency forward contracts to hedge certain forecasted expenses denominated in foreign currencies, primarily the Euro and Singapore Dollar. The Company hedges future cash flows for capital expenditures denominated in foreign currencies, primarily the Euro. In addition, the Company uses pay-fixed/receive-float interest rate swaps and cross-currency swaps to protect the Company against adverse fluctuations in interest rates and foreign currency rates and to reduce its exposure to variability in cash flows on the Company’s forecasted floating-rate debts and foreign currency- denominated debts. The Company also uses commodity forward contracts to hedge forecasted electricity consumption to minimize the impact of commodity price movements on the reported earnings of the Company and on future cash flows related to fluctuations of the contractually specified, separately identifiable and reliably measurable commodity risk component. At the inception of the hedge relationship, the Company documents the relationship between the hedging instrument and the hedged item along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the inception of the hedge, and on an ongoing basis, the Company documents whether a hedging relationship meets the hedge effectiveness requirements under IFRS 9 and whether there continues to be an economic relationship between the hedged item and the hedging instrument. The Company designates these contracts and swaps as cash flow hedges of forecasted expenses, capital expenditures or floating-rate and foreign currency denominated debts, as applicable, and evaluates hedge effectiveness prospectively. As such, the effective portion of the gain or loss on these contracts and swaps is reported as a component of OCI and reclassified to the consolidated statements of operations in the same line item as the associated forecasted transaction for expenses and in the same period during which the hedged item affects earnings. For hedges of capital expenditures, the amount in OCI is incorporated into the initial carrying amounts of the non-financial assets and depreciated over the average useful life of the underlying assets. Any ineffective portion of hedges for expenses or capital expenditures is immediately recorded in the consolidated statements of operations. Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or when it no longer meets the criteria for hedge accounting. Any gain or loss recognized in the cash flow hedge reserve remains in equity and is recognized in the consolidated statements of operations when the forecast transaction is ultimately recognized in the consolidated statements of operations. When a forecasted transaction is no longer expected to occur, the gain or loss accumulated in equity is recognized immediately in the consolidated statements of operations. Derecognition of financial assets The Company derecognizes a financial asset only when the contractual rights to the cash flows from the financial asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the financial asset to another entity. On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in the consolidated statements of operations. On derecognition of an investment in a debt instrument at FVOCI, the difference between the asset’s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognized in OCI is recognized in the consolidated statements of operations. However, on derecognition of an investment in an equity instrument at FVOCI, the cumulative gain or loss that had been recognized in OCI is transferred directly to retained earnings, without recycling through the consolidated statements of operations. |
Inventories and Inventory Valuation | Inventory Valuation —Inventories are stated at standard cost adjusted to the lower of cost or net realizable value. The Company measures the cost of its inventory based on a standard cost process with appropriate adjustments for purchasing and manufacturing variances, which approximates weighted average cost. Inventory allowances are made on an item-by-item basis, except where it may be appropriate to group similar or related items. An allowance is made for the estimated losses due to obsolescence based on expected future demand and market conditions. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale. |
Intangible Assets | Intangible Assets —Technology, patent, software licenses and similar rights acquired separately are stated at cost or are adjusted to fair value when impaired. Intangible assets acquired through business combinations which include customer relationships and manufacturing and process technology, are recorded at estimated fair values at the date of acquisition. Intangible assets are amortized based on the pattern in which the economic benefits of the respective intangible asset are consumed, which is in general on a straight-line basis over their estimated useful lives of between 3 and 10 years. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Impairment of Non-Financial Assets —The Company reviews, at each reporting date, the carrying amount of the Company’s property, plant and equipment and finite lived intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any indication exists, the recoverable amount of the asset is estimated in order to determine the extent, if any, of the impairment loss. Where it is not possible to estimate the recoverable amount of an individual assets, the Company estimates the recoverable amount of the cash generating unit (“CGU”) to which the asset belongs. The recoverable amount of an asset or CGU is estimated to be the higher of an asset’s or CGU’s fair value less costs to dispose and its value in use. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset or CGU is considered impaired and is written down to its recoverable amount. The Company also evaluates, and adjusts if appropriate, the asset’s useful lives, at each reporting date or when impairment indicators exist. In assessing value in use, the estimated future post-tax cash flows are discounted to their present value using a post-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. The Company bases its impairment calculation on detailed budgets and forecast calculations, which may include an approved formal five-year management plan for each of the CGUs to which the individual assets are allocated. In determining fair value less costs to sell, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. Impairment losses are recognized in the consolidated statements of operations and comprehensive income (loss) to the extent of the recoverable amount, measured at the present value of discounted cash flows attributable to the assets, is less than their carrying value. If the recoverable amount subsequently increases, the impairment loss previously recognized will be reversed to the extent of the increase in the recoverable amount, provided that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset in prior years. The impairment loss reversal is recognized immediately in the consolidated statements of operations. |
Provisions | Provisions —Provisions are recognized when the Company has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated. Provisions are mainly made up of site restoration obligations, as well as restructuring charges. The associated site restoration costs are capitalized as part of the carrying amount of the underlying asset and depreciated over the estimated useful life of the related long-lived assets. A provision for restructuring is recognized when the Company has approved a detailed and formal restructuring plan, and the restructuring either has commenced or has been announced publicly. Future operating losses are not provided for. |
Leasing | Leasing —The Company determines if an arrangement is a lease or contains a lease at inception. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Right-of-use assets —The Company recognizes right-of-use assets at the commencement date of the lease (i.e. the date the underlying asset is available for use). Right-of-use assets are reported within property, plant and equipment, and are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets. If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset. Lease liabilities —At the commencement date of the lease, the Company recognizes lease liabilities measured at the present value of the lease payments to be made over the lease term. Only lease payments that are fixed and determinable are considered at the time of commencement. The lease payment includes fixed payments (including in-substance fixed payments) less any lease incentives, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognized as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs. In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g . , changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying assets. The Company’s lease liabilities are separately reported in the consolidated statements of financial position under non-current portion of lease obligations and current portion of lease obligations. Short-term leases and leases of low-value assets —The Company applies the short-term lease recognition exemption to leases that have a lease term not exceeding 12 months, or for leases of low-value assets. The payment for such leases is recognized in the Company’s consolidated statements of operations on a straight-line basis over the lease term. |
Share-based compensation | Share-based compensation —Share-based compensation expense related to share awards is recognized based on the fair value of the awards granted. The fair value of each award is estimated on the grant date using the Black-Scholes option pricing model for options and the Monte Carlo simulation model for the Performance Share Units (“PSUs”). Both models require management to make certain assumptions of future expectations based on historical and current data. The assumptions include the expected term of the awards, expected volatility, dividend yield, and risk-free interest rate. The expected term represents the amount of time that awards granted are expected to be outstanding, based on forecasted exercise behavior. The option pricing model requires the input of highly subjective assumptions, including the estimated fair value of the Company’s stock, expected term of the option, expected volatility of the price of the Company’s shares, risk free interest rate and the expected dividend yield of ordinary shares. The assumptions used to determine the fair value of the option awards represent management’s best estimates. These estimates involve inherent uncertainties and the application of management’s judgment. The Company estimates the expected forfeiture for options utilizing historical data, and only recognizes expense when a defined liquidity event (change in control or IPO) is deemed probable on the number of awards that are expected to vest. After applying a forfeiture estimate during each reporting period for when the options are probable of vesting, the Company recognizes expense on a graded attribution basis for each tranche of the award over the period from the grant date to the later of the one-year anniversary of estimated time following a liquidity event or the legal vesting dates (see Note 29). The grant date fair value of equity-settled share-based payment awards granted to employee is recognized as an employee benefit expense, with a corresponding increase in equity, over the vesting period of the awards, The amount recognized as an expense is adjusted to reflected the number of awards for which the service and non-market performance conditions are expected to be met, such that the amount ultimately recognized as an expense is based on the number of awards that meet the service and non-market performance conditions at the vesting date. For share-based payment awards with non-vesting conditions, the grant date fair value of the share-based payment is measured to reflect such conditions and there is no true-up for differences between expected and actual performance. The principles of modification accounting are applied when new share-based payment is granted as a replacement for another share-based payment that is cancelled. When modification accounting is applied, the entity accounts for any incremental fair value in addition to the grant-date fair value of the original award. In the case of a replacement, the incremental fair value is the difference between the fair value of the replacement award and the net fair value of the cancelled award, both measured at the date on which the replacement award is issued. The net fair value is the fair value of the cancelled award measured immediately before the cancellation, less any payment made to the employees on cancellation. A package of modifications might include several changes to the terms of a grant, some of which are favorable to the employee and some not. In the event the net effect is not beneficial to the employee, cancellation accounting will be applied. Cancellations or settlements of equity-settled share-based payments during the vesting period by the Company are accounted for as accelerated vesting; therefore, the amount that would otherwise have been recognized for services received is recognized immediately. The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses as well as the disclosure of commitments and contingencies. Actual results may differ from these estimates and such differences may be material to the consolidated financial statements. Enterprise Value —Given the absence of a public trading market of the Company’s ordinary shares prior to the initial public offering, and in accordance with the American Institute of Certified Public Accountants Practice Aid, Valuation of Privately-Held Company Equity Securities Issued as Compensation, the Company’s board of directors exercised reasonable judgment and considered numerous objective and subjective factors to determine the best estimate of the fair value of the Company’s ordinary shares at each grant date. These factors include: • valuations of the Company’s ordinary shares performed by independent third-party specialists; • lack of marketability of the Company’s ordinary shares; • the Company’s actual operating and financial performance; • current business conditions and projections; • hiring of key personnel and the experience of the Company’s management; • the history of the Company and the introduction of new products; • the Company’s stage of development; • the market performance of comparable publicly traded companies; and • the U.S. and global capital market conditions. In valuing the Company’s ordinary shares, management determined the equity value of the Company’s business using various valuation methods including combinations of income and market approaches. The income approach estimates value based on the expectation of future cash flows that a company will generate. These future cash flows are discounted to their present values using a discount rate derived from an analysis of the cost of capital of comparable publicly traded companies in the Company’s industry or similar business operations as of each valuation date and is adjusted to reflect the risks inherent in the Company’s cash flows. For the market approach, the Company reviews the performance of a set of guideline comparable public companies, and considers the guideline companies’ various financial characteristics, including size, profitability, balance sheet strength, and diversification as compared to the Company. Subsequent to IPO, the fair value of the ordinary shares is determined based on market share price. Application of these approaches involves the use of estimates, judgment, and assumptions that are highly complex and subjective, such as those regarding the Company’s expected future revenue, expenses, and future cash flows, discount rates, market multiples, and the selection of comparable companies. Changes in any or all of these estimates and assumptions or the relationships between those assumptions impact the Company’s valuations as of each valuation date and may have a material impact on the valuation of the Company’s ordinary shares. |
Earnings Per Share | Earnings Per Share —Basic earnings per share is calculated by dividing the net income (loss) attributable to equity holders of the Company by the weighted average number of ordinary shares outstanding during the year. Diluted earnings per share is calculated by dividing the net income (loss) attributable to equity holders of the Company by the weighted average number of ordinary shares outstanding, adjusted for the effects of all potentially dilutive ordinary shares. The weighted average number of ordinary shares outstanding is increased by the number of additional ordinary shares that would have been issued by the Company assuming exercise of all options with exercise prices below the average market price for the year. |
Government Grants | Government Grants —Government grants are recognized when there is reasonable assurance that the grant will be received and all attached conditions will be complied with. When the grant relates to an expense item or relates to acquisition of assets, it is recognized as deferred income and released to the consolidated statements of operations over the period necessary to match the grant on a systematic basis to the costs that it is intended to compensate and is presented as a reduction of those costs. Where the grant relates to investment tax credits, it is recognized as a reduction in the basis of the asset and released as a reduction to depreciation expense in equal amounts over the expected useful life of the related asset. Grants the Company received are primarily provided in connection with construction and operation of the Company’s manufacturing facilities, employment, research and development. |
Research and Development Costs | Research and Development Costs —Research costs are expensed as incurred. Development costs are recognized as intangible assets only when it is probable that expected future economic benefits, attributable to the development activities, will accrue to the Company. |
Borrowing Costs | Borrowing Costs —Borrowing costs directly attributable to the construction phase of property, plant and equipment are capitalized as part of the cost of assets which are constructed by the Company and for which a considerable period of time (at least six months) is planned for construction. Borrowing costs are capitalized from the start of construction until the date the asset is ready for its intended use. All other borrowing costs are recognized as an expense in the period in which they are incurred. |
Current and Deferred Income Tax | Current Income Tax —Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the balance sheet date. Income Taxes and Realization of Deferred Income Tax Asset —In determining taxable income for financial statement reporting purposes, management makes certain estimates and judgments specific to taxation issues. These estimates and judgments are applied in the calculation of certain tax liabilities and in the determination of the recoverability of deferred tax assets, which arise from temporary differences between the recognition of assets and liabilities for income tax and financial statement reporting purposes. Deferred taxes are recognized for unused losses, among other factors, to the extent that it is probable that taxable profit will be available against which the losses can be utilized. This evaluation requires the exercise of judgment with respect to, among other things, benefits that could be realized from available tax strategies and future taxable income, as well as other positive and negative factors. The ultimate realization of deferred tax assets is dependent upon, among other things, the Company’s ability to generate future taxable income that is sufficient to utilize loss carry-forwards or tax credits before their expiration or the Company’s ability to implement prudent and feasible tax planning strategies. If estimates of projected future taxable income and benefits from available tax strategies are reduced as a result of a change in the assessment or due to other factors, or if changes in current tax regulations are enacted that impose restrictions on the timing or extent of the Company’s ability to utilize net operating losses and tax credit carry-forwards in the future, the Company may be required to reduce the amount of total deferred tax assets resulting in a decrease of total assets. Likewise, a change in the tax rates applicable in the various jurisdictions or unfavorable outcomes of any ongoing tax audits could have a material impact on the future tax provisions in the periods in which these changes could occur. In addition, the calculation of tax liabilities involves dealing with uncertainties in the application of complex tax rules and the potential for future adjustment of uncertain tax positions by the tax authorities in the countries in which the Company operates. If estimates of these taxes are greater or less than actual results, an additional tax benefit or charge may result. |
Current versus noncurrent classification | . |
Recent Accounting Pronouncements | Recent Accounting Pronouncements, Adopted: Amendments to IFRS 7, IFRS 9 and IAS 39 Interest Rate Benchmark Reform — Phase 1 Amendments - On 1 January 2020, the Company adopted the Phase 1 amendments arising from the Interbank Offered Rate (“IBOR”) reform amendments issued in September 2019, which provides temporary relief from applying specific hedge accounting requirements to hedge relationships directly affected by IBOR reform, such that the effect is that IBOR reform should not generally cause hedge accounting to terminate. Phase 2 Amendments - On 1 January 2021, the Company adopted the Phase 2 amendments arising from the IBOR reform issued in August 2020. The Phase 2 amendments address issues that arise from the implementation of the IBOR reform, including the replacement of an interest rate benchmark with an alternative benchmark rate. The key reliefs provided to the Company are as follows: • financial instruments measured at amortized cost are allowed to account for changes in the basis for determining contractual cash flows as a direct consequence of the IBOR reform by updating the effective interest rate, provided that the new basis is economically equivalent to the previous basis, such that there is no immediate gain or loss recognized; and • most IFRS 9 hedge relationships that are directly affected by the IBOR reform are allowed to continue. The Company has evaluated the extent to which its cash flow hedging relationships are subject to uncertainty driven by IBOR reform as of December 31, 2022. The Company’s hedged items and hedging instruments continue to be indexed to the Euro Interbank offered rate (“EURIBOR”) and the London Inter-bank Offered Rate (“LIBOR”). These benchmark rates are quoted each day and the IBOR cash flows are exchanged with counterparties as usual. The Company has also evaluated the extent to which contracts reference IBOR cash flows, and whether such contracts will need to be amended as a result of IBOR reform. There has been communication about IBOR reform with the counterparties. However, no amendments have been made to the Company’s existing IBOR-referenced loan and derivative contracts as of December 31, 2022. As of December 31, 2022, there is still uncertainty about when and how replacement may occur with respect to the relevant hedged items and hedging instruments. Accordingly, the Company will continue to apply the Phase 1 amendments until the uncertainty arising from the IBOR reform with respect to the timing and the amount of the underlying cash flows that the Company is exposed to is no longer present. This uncertainty will not end until the Company’s contracts that reference IBOR are amended to specify the alternative benchmark rate and the relevant adjustment, if any. This will, in part, be dependent on the negotiation with the counterparties and the introduction of fall-back clauses which have yet to be added to the Company’s contracts. The Company has a limited exposure to changes in the IBOR benchmark. The Company has $795 million of interest rate swaps which are in a cash flow hedge relationship of USD Equipment Financing and USD Term Loan A. Also, the Company has EUR $475 million of cross currency swaps which are in cash flow hedge relationships of EUR E quipment Financing and EUR Term Loan A. The table below indicates the nominal amount and weighted average maturity of derivatives in hedging relationships that will be affected by IBOR reform as financial instruments transition to risk-free rates, analyzed by interest rate basis. The derivative hedging instruments provide a close approximation to the extent of the risk exposure the Company manages through hedging relationships. Recent Accounting Pronouncements, Not Adopted: The Company has not adopted the following new, revised or amended IFRS standards that have been issued by the IASB but not yet effective: • Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2) - Effective for annual periods beginning on or after January 01, 2023; • Definition of Accounting Estimates (Amendments to IAS 8) - Effective for annual periods beginning on or after January 01, 2023; • Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments to IAS 12 - Effective for annual periods beginning on or after January 01, 2023; • Non-current Liabilities with Covenants - Amendments to IAS 1 - Effective for annual periods beginning on or after January 01, 2024; and • Lease Liability in a Sale and Leaseback - Amendments to IFRS 16 - Effective for annual periods beginning on or after January 01, 2024. |
Changes in estimates | Changes in estimates — |
Summary of Significant Polici_2
Summary of Significant Policies, Judgements, Estimates and Assumptions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies, Changes In Accounting Estimates And Errors [Abstract] | |
Disclosure of financial instruments | As of December 31, 2022 Interest rate swaps (in millions USD) Currency Nominal amount Maturity Three-month LIBOR USD 19 2023 Three-month LIBOR USD 624 2024 Six-month LIBOR USD 152 2026 Total USD 795 Cross currency swaps (in millions Euro) Three-month LIBOR EUR 83 2024 Six-month LIBOR EUR 335 2024 Six-month LIBOR EUR 57 2026 Total EUR 475 The following foreign currency forward contracts are outstanding at December 31, 2021 and 2022 (in millions, except average foreign currency/US$): Fair Value of Derivative Instruments Derivative Instruments Other Current Financial Assets Other Non-current Financial Assets Other Current Financial Liabilities Other Non-current Financial Liabilities Notional Amount Average Foreign Currency/ US$ Average Strike Price Maturity Outstanding as of December 31, 2021: Forward contracts: Euro forward contracts (receive euros/pay US$) $ 4 $ — $ (38) $ — $ 1,240 0.86 — 2022 - 2023 Singapore dollar forward contracts (receive Singapore$/pay US$) 3 — (3) — 858 1.35 — 2022 Japanese yen forward contracts (receive Japanese yen/pay US$) 2 — (7) — 300 112.77 — 2022 - 2023 Interest rate swaps — — (8) 993 — 0.382% - 1.731% 2023 - 2026 Cross currency swaps (receive euros/pay US$) — — — (4) 551 0.89 3.834% - 4.182% 2024 - 2026 Cross currency swaps (receive Singapore $/pay US$) — — — (4) 109 1.37 1.830% - 1.941% 2028 Commodity hedge 14 2 (1) (1) 96 — — 2022 - 2023 Total $ 23 $ 2 $ (49) $ (17) $ 4,147 Outstanding as of December 31, 2022: Forward contracts: Euro forward contracts (receive Euros/Pay US$) $ 46 $ 3 $ (32) $ — $ 1,203 0.94 — 2023 - 2024 Singapore dollar forward contracts (receive Singapore$/pay US$) 15 — (1) — 496 1.37 — 2023 Japanese yen forward contracts (receive Japanese yen/pay US$) 18 — (20) — 236 127.22 — 2023 - 2024 Interest rate swaps — 42 — — 795 — 0.382% - 1.731% 2023 - 2026 Cross currency swaps (receive euros/pay US$) — 2 — (3) 535 0.89 3.834% - 4.182% 2024 - 2026 Cross currency swaps (receive Singapore $/pay US$) — 51 — — 796 1.37 1.830% - 1.941% 2028 Commodity hedge — — (8) (2) 47 — 512.56 2023 Total $ 79 $ 98 $ (61) $ (5) $ 4,108 |
Net Revenue (Tables)
Net Revenue (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contracts with Customers [Abstract] | |
Schedule of disaggregation of revenue | The following table presents the Company’s revenue disaggregated based on revenue source and timing of revenue recognition. The Company believes these categories best depict how the nature and timing of revenue. (in millions) 2022 2021 2020 Type of goods and services: Wafer fabrication $ 7,627 $ 6,204 $ 4,440 Engineering and other pre-fabrication services 481 381 411 $ 8,108 $ 6,585 $ 4,851 Timing of revenue recognition: Revenue recognized over time $ 445 $ 357 $ 4,228 Revenue recognized at a point in time 7,663 6,228 623 $ 8,108 $ 6,585 $ 4,851 |
Cost of Revenue (Tables)
Cost of Revenue (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contracts with Customers [Abstract] | |
Schedule of cost of revenues | (in millions) 2022 2021 2020 Depreciation of PPE and amortization of intangible assets (1) $ 1,468 $ 1,422 $ 2,187 Inventory changes and materials costs and other 1,834 1,726 1,187 Staff costs, maintenance costs, and utilities (2) 2,567 2,424 2,189 $ 5,869 $ 5,572 $ 5,563 (1) Amounts are net of amortization of government grants relating to assets. See Note 12 for the detailed movements of property, plant and equipment. (2) Staff costs, maintenance costs, and utilities costs include share-based compensation of $64 million, $55 million and $0 for share options for the year ended December 31, 2022, 2021 and 2020, respectively. |
Research and Development Expe_2
Research and Development Expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Analysis of income and expense [abstract] | |
Schedule of research and development expenses | (in millions) 2022 2021 2020 Staff costs, maintenance costs, and utilities (1) $ 247 $ 257 $ 230 Depreciation of PPE and amortization of intangible assets 110 147 220 Other (2) 125 74 26 $ 482 $ 478 $ 476 (1) Staff costs, maintenance costs, and utilities costs include share-based compensation of $27 million, $22 million and $0 for share options for the year ended December 31, 2022, 2021 and 2020, respectively. |
Selling, General and Administ_2
Selling, General and Administrative Expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Analysis of income and expense [abstract] | |
Schedule of selling, general and administrative expenses | (in millions) 2022 2021 2020 Staff costs, maintenance costs, and utilities (1) $ 417 $ 537 $ 340 Depreciation of PPE and amortization of intangible assets 45 49 115 Other (2) 34 9 (10) $ 496 $ 595 $ 445 (1) Staff costs, maintenance costs, and utilities costs include share-based payments of $92 million, $152 million and $1 million for share options for the year ended December 31, 2022, 2021 and 2020, respectively. See Note 3 for further discussion on the timing of expense recognition. |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring [Abstract] | |
Disclosure of summary of restructuring | The changes to the restructuring provisions recorded on the consolidated statements of financial position as of December 31, 2022, are summarized as follows: (in millions) 2022 Beginning balance as of December 31, 2021 — Provision $ 91 Amounts paid $ (5) Ending balance as of December 31, 2022 $ 86 |
Impairment Charges (Tables)
Impairment Charges (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Impairment of assets [Abstract] | |
Schedule of impairment charges | The Company recorded the following impairment charges: (in millions) 2022 2021 2020 Equipment $ — $ — $ 23 Total impairment charges $ — $ — $ 23 |
Finance Expenses (Tables)
Finance Expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Analysis of income and expense [abstract] | |
Schedule of finance expenses | (in millions) 2022 2021 2020 Interest on long-term debt $ 69 $ 72 $ 98 Interest on lease obligations 23 27 35 Commitment fees and amortization of debt issuance costs 13 12 18 Accretion costs and other 6 3 3 Total finance expenses $ 111 $ 114 $ 154 |
Gain on Sale of a Business (Tab
Gain on Sale of a Business (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Non-Current Asset Held For Sale And Discontinued Operations [Abstract] | |
Schedule of sale of facility and business | The following is the breakdown of the net liabilities that were derecognized: (in millions) December 31, Property, plant and equipment $ 83 Inventories 43 Total Assets 126 Lease liabilities (47) Other current and non-current liabilities (88) Total Liabilities (135) Net Liabilities $ (9) |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Analysis of income and expense [abstract] | |
Schedule of other (income) expense, net | (in millions) 2022 2021 2020 Gain on legal settlement (1) $ — $ — $ 294 Gain on remeasurement of existing equity interests — — 38 Other (2) $ 22 (8) 110 Total other income (expense), net $ 22 $ (8) $ 442 (1) On April 10, 2020, under the terms of a settlement agreement, the Company received a settlement and recorded total gains of $294 million related to this settlement for the year ended December 31, 2020. (2) Relates primarily to share of profits of joint ventures, gains and losses related to hedging activities and gains on the sales of property, plant and equipment and intangible assets. |
Property, Plant And Equipment (
Property, Plant And Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Schedule of depreciation expense | Depreciation expenses on property, plant and equipment are as follows: (in millions) 2022 2021 2020 Cost of revenue $ 1,377 $ 1,309 $ 2,087 Research and development expenses 40 73 121 Selling, general and administrative expenses 30 29 30 Total $ 1,447 $ 1,411 $ 2,238 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Intangible Assets [Abstract] | |
Schedule of goodwill and intangible assets rollforward | Cost (in millions) Technology, Licenses and Similar Rights Software Patents Goodwill Others Total As of December 31, 2020 $ 1,249 $ 280 $ 234 $ 18 $ 132 $ 1,913 Additions 33 4 — — — 37 Disposals (80) — (5) — — (85) As of December 31, 2021 1,202 284 229 18 132 1,865 Additions 62 96 — — 5 163 Disposals (47) (12) (3) — — (62) As of December 31, 2022 $ 1,217 $ 368 $ 226 $ 18 $ 137 $ 1,966 Accumulated Amortization As of December 31, 2020 $ 785 $ 263 $ 186 $ — $ 131 $ 1,365 Additions 162 15 30 — — 207 Disposals (80) — (4) — — (84) As of December 31, 2021 867 278 212 — 131 1,488 Additions 150 10 16 — — 176 Disposals (46) (12) (3) — — (61) As of December 31, 2022 $ 971 $ 276 $ 225 $ — $ 131 $ 1,603 Net book value as of December 31, 2021 $ 335 $ 6 $ 17 $ 18 $ 1 $ 377 Net book value as of December 31, 2022 $ 246 $ 92 $ 1 $ 18 $ 6 $ 363 |
Schedule of amortization expense | Amortization expenses on intangible assets are as follows: (in millions) 2022 2021 2020 Cost of revenue $ 91 $ 113 $ 100 Research and development expenses 70 74 99 Selling, general and administrative expenses 15 20 85 Total $ 176 $ 207 $ 284 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income taxes [Abstract] | |
Schedule of components of income tax benefit (expense) | Income tax benefit (expense) consisted of the following: (in millions) December 31, December 31, December 31, Current income tax expense: Current income tax benefit (expense) $ (14) $ 2 $ (29) Adjustments in respect of current income tax of previous year (5) (1) — Deferred tax Net operating and investment allowance carryforwards (44) (78) 35 Currency effect on non-monetary assets of subsidiary (12) (37) 43 Other change in temporary differences (11) 36 (37) Income tax benefit (expense) reported in the consolidated statements of operations $ (86) $ (78) $ 12 |
Reconciliation between tax benefit and accounting profit multiplied by the Company's tax rate | A reconciliation between tax benefit and accounting profit multiplied by the Company’s statutory rate of 0.0% is as follows: (in millions) December 31, December 31, December 31, Income (Loss) before income taxes $ 1,532 $ (176) $ (1,365) Tax at Enacted Statutory Rate $ — $ — $ — Foreign tax rate differential (98) (75) 59 Adjustments in respect to current income tax of previous years (5) (1) — Government grants exempt from tax 7 5 13 Deductible expense for tax purpose — (1) (8) Impact of unrecognized deferred tax assets 57 9 (63) Non-deductible expenses for tax purposes (21) (4) — Effects of foreign exchange gains (loss) (14) (22) 40 Impact of change in liability for uncertain tax positions 1 7 9 Withholding Tax (11) — (34) Other effects (2) 4 (4) Income tax benefit (expense) $ (86) $ (78) $ 12 Effective income tax rate (5.6) % 44.3 % (0.9) % |
schedule of deferred tax assets and liabilities | Components of the Company’s deferred tax assets and liabilities are attributable as follows: (in millions) December 31, December 31, Accelerated depreciation on property, plant and equipment $ (18) $ (458) Losses, credits and investment allowances available for offsetting against future taxable income 277 394 Accrued expenses 16 349 Inventory 1 65 Other comprehensive income (8) — Currency effect — (8) Deferred income — 10 Other (2) (1) Net deferred tax assets $ 266 $ 351 The net deferred tax assets as of December 31, 2022 have been adjusted to reflect a change in classification methodology primarily impacting accrued expenses and accelerated depreciation on property, plant and equipment. There is no change to presentation for balances as of December 31, 2021. The classification of the net deferred tax assets (liabilities) in the statements of financial position is as follows: (in millions) December 31, December 31, Deferred tax assets $ 292 $ 353 Deferred tax liabilities (1) (26) (2) Net deferred tax assets $ 266 $ 351 (1) Included in Other non-current liabilities in the statements of financial position. |
Schedule of deferred tax assets, net | A reconciliation of deferred taxes, net is as follows: (in millions) December 31, December 31, Beginning balance $ 351 $ 435 Tax expense recognized to consolidated statements of operations (67) (79) Tax benefit (expense) recognized to other comprehensive income (loss) (18) 3 Uncertain tax positions and others — (8) Ending balance $ 266 $ 351 |
Receivables, Prepayments and _2
Receivables, Prepayments and Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Trade and other current receivables [abstract] | |
Schedule of accounts receivable | (in millions) December 31, 2022 December 31, 2021 Current: Trade receivables, other than related parties (1) $ 824 $ 872 Other receivables 497 238 Unbilled accounts receivable (2) 24 43 Receivables from government grant 52 47 Receivables from related parties (Note 28) 11 8 Other current financial assets 79 23 Total $ 1,487 $ 1,231 Non-current: Advances to suppliers (3) 235 199 Non-trade receivables 10 13 Payment in Lieu of Tax (“PILOT”’) Bonds 11 8 Other 25 34 Total $ 281 $ 254 (1) The Company’s trade receivables, other than related parties, are all classified as current and are expected to be collected within one year. The Company’s provision for sales returns was not material for either for the years ended December 31, 2022 or 2021. See the table below for the aging of the Company’s trade receivables, other than related parties. (2) Unbilled accounts receivable represents amounts recognized on revenue contracts less associated advances and progress billings. These amounts will be billed in accordance with the agreed-upon contractual terms or upon shipment of products or rendering services. (3) Primarily represents advances to supplier to offset against future purchases. |
Schedule of unbilled accounts receivables | The following table presents the activities in unbilled accounts receivable as of December 31, 2022 and 2021: (in millions) December 31, December 31, Beginning balance $ 43 $ 62 Revenue recognized during the year 87 44 Amounts invoiced (106) (69) Other — 6 Ending balance $ 24 $ 43 The following table presents the aging of accounts receivable as of December 31, 2022 and 2021: (in millions) December 31, December 31, Receivables neither past due nor impaired $ 708 $ 830 Receivables past due—not impaired individually: Less than 30 days 83 41 31 to 60 days 22 — 61 to 90 days 11 — 90 to 120 days — 1 $ 824 $ 872 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventories [Abstract] | |
Schedule of inventories | (in millions) December 31, December 31, Work in progress $ 1,079 $ 961 Raw materials and supplies 375 260 Inventory reserves (115) (100) Total $ 1,339 $ 1,121 The following table presents the movement in the inventory reserves: (in millions) December 31, December 31, Beginning balance $ 100 $ 243 Additions (1) 88 126 Written-off and scrapped (35) (29) Elimination of reserves upon sale of inventory (38) (240) Ending balance $ 115 $ 100 (1) This includes additional inventory reserve of $26 million arising from the adjustment to cost of revenue recorded by the Company in 2021 in conjunction with the modification of its customer contracts as discussed in Note 4. |
Other Financial Assets And Li_2
Other Financial Assets And Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Financial Instruments [Abstract] | |
Disclosure of financial assets and liabilities | The following foreign currency forward contracts are outstanding at December 31, 2021 and 2022 (in millions, except average foreign currency/US$): Fair Value of Derivative Instruments Derivative Instruments Other Current Financial Assets Other Non-current Financial Assets Other Current Financial Liabilities Other Non-current Financial Liabilities Notional Amount Average Foreign Currency/ US$ Average Strike Price Maturity Outstanding as of December 31, 2021: Forward contracts: Euro forward contracts (receive euros/pay US$) $ 4 $ — $ (38) $ — $ 1,240 0.86 — 2022 - 2023 Singapore dollar forward contracts (receive Singapore$/pay US$) 3 — (3) — 858 1.35 — 2022 Japanese yen forward contracts (receive Japanese yen/pay US$) 2 — (7) — 300 112.77 — 2022 - 2023 Interest rate swaps — — (8) 993 — 0.382% - 1.731% 2023 - 2026 Cross currency swaps (receive euros/pay US$) — — — (4) 551 0.89 3.834% - 4.182% 2024 - 2026 Cross currency swaps (receive Singapore $/pay US$) — — — (4) 109 1.37 1.830% - 1.941% 2028 Commodity hedge 14 2 (1) (1) 96 — — 2022 - 2023 Total $ 23 $ 2 $ (49) $ (17) $ 4,147 Outstanding as of December 31, 2022: Forward contracts: Euro forward contracts (receive Euros/Pay US$) $ 46 $ 3 $ (32) $ — $ 1,203 0.94 — 2023 - 2024 Singapore dollar forward contracts (receive Singapore$/pay US$) 15 — (1) — 496 1.37 — 2023 Japanese yen forward contracts (receive Japanese yen/pay US$) 18 — (20) — 236 127.22 — 2023 - 2024 Interest rate swaps — 42 — — 795 — 0.382% - 1.731% 2023 - 2026 Cross currency swaps (receive euros/pay US$) — 2 — (3) 535 0.89 3.834% - 4.182% 2024 - 2026 Cross currency swaps (receive Singapore $/pay US$) — 51 — — 796 1.37 1.830% - 1.941% 2028 Commodity hedge — — (8) (2) 47 — 512.56 2023 Total $ 79 $ 98 $ (61) $ (5) $ 4,108 |
Disclosure of financial assets and liabilities | As of December 31, 2022 Interest rate swaps (in millions USD) Currency Nominal amount Maturity Three-month LIBOR USD 19 2023 Three-month LIBOR USD 624 2024 Six-month LIBOR USD 152 2026 Total USD 795 Cross currency swaps (in millions Euro) Three-month LIBOR EUR 83 2024 Six-month LIBOR EUR 335 2024 Six-month LIBOR EUR 57 2026 Total EUR 475 The following foreign currency forward contracts are outstanding at December 31, 2021 and 2022 (in millions, except average foreign currency/US$): Fair Value of Derivative Instruments Derivative Instruments Other Current Financial Assets Other Non-current Financial Assets Other Current Financial Liabilities Other Non-current Financial Liabilities Notional Amount Average Foreign Currency/ US$ Average Strike Price Maturity Outstanding as of December 31, 2021: Forward contracts: Euro forward contracts (receive euros/pay US$) $ 4 $ — $ (38) $ — $ 1,240 0.86 — 2022 - 2023 Singapore dollar forward contracts (receive Singapore$/pay US$) 3 — (3) — 858 1.35 — 2022 Japanese yen forward contracts (receive Japanese yen/pay US$) 2 — (7) — 300 112.77 — 2022 - 2023 Interest rate swaps — — (8) 993 — 0.382% - 1.731% 2023 - 2026 Cross currency swaps (receive euros/pay US$) — — — (4) 551 0.89 3.834% - 4.182% 2024 - 2026 Cross currency swaps (receive Singapore $/pay US$) — — — (4) 109 1.37 1.830% - 1.941% 2028 Commodity hedge 14 2 (1) (1) 96 — — 2022 - 2023 Total $ 23 $ 2 $ (49) $ (17) $ 4,147 Outstanding as of December 31, 2022: Forward contracts: Euro forward contracts (receive Euros/Pay US$) $ 46 $ 3 $ (32) $ — $ 1,203 0.94 — 2023 - 2024 Singapore dollar forward contracts (receive Singapore$/pay US$) 15 — (1) — 496 1.37 — 2023 Japanese yen forward contracts (receive Japanese yen/pay US$) 18 — (20) — 236 127.22 — 2023 - 2024 Interest rate swaps — 42 — — 795 — 0.382% - 1.731% 2023 - 2026 Cross currency swaps (receive euros/pay US$) — 2 — (3) 535 0.89 3.834% - 4.182% 2024 - 2026 Cross currency swaps (receive Singapore $/pay US$) — 51 — — 796 1.37 1.830% - 1.941% 2028 Commodity hedge — — (8) (2) 47 — 512.56 2023 Total $ 79 $ 98 $ (61) $ (5) $ 4,108 |
Disclosure of fair value of financial instruments | The following table presents the fair values and locations of these derivative instruments recorded in the consolidated statements of financial position: Fair Value of Derivative Instruments Assets Derivatives Liabilities Derivatives (in millions) Statement of Financial Position Location Fair Value Statement of Financial Position Location Fair Value As of December 31, 2021: Derivatives designated as hedging instruments - foreign currency forward contracts Other current financial assets $ 6 Other current financial liabilities $ (46) - interest rate swaps Other non-current financial assets Other non-current financial liabilities (8) - cross currency swaps Other non-current financial assets — Other non-current financial liabilities (8) - commodity hedge Other current financial assets 14 Other current financial liabilities (1) Other non-current financial assets 2 Other non-current financial liabilities (1) Derivatives not designated as hedging instruments - foreign currency forward contracts Other current financial assets 3 Other current financial liabilities (2) Total derivatives $ 25 $ (66) As of December 31, 2022: Derivatives designated as hedging instruments - foreign currency forward contracts Other current financial assets $ 69 Other current financial liabilities $ (52) Other non-current financial assets 3 - interest rate swaps Other non-current financial assets 42 Other non-current financial liabilities — - cross currency swaps Other non-current financial assets 53 Other non-current financial liabilities (3) - commodity hedge Other current financial assets — Other current financial liabilities (8) Other non-current financial assets — Other non-current financial liabilities (2) Derivatives not designated as hedging instruments - foreign currency forward contracts Other current financial assets 10 Other current financial liabilities (1) Total derivatives $ 177 $ (66) |
Sensitivity analysis for types of market risk | (in millions) Amount of Gains (Losses) Recognized in Accumulated OCI on Derivatives (effective Portion) Amount of Gains (Losses) Reclassified from Accumulated OCI to cost of Property, Plant and Equipment Location of Gains (Losses) Reclassified from Accumulated OCI into Income (Effective Portion) Amounts of Gains (Losses) Reclassified from Accumulated OCI into Income (Effective Portion) Location of Gains (Losses) Recognized into Income (Ineffective Portion) Amount of Gain (Losses) Recognized into income (Ineffective Portion) Year ended December 31, 2021 Derivatives designated as hedging instruments— Forward currency forward contracts $ (76) $ (6) Cost of revenue and operating expenses $ 11 Selling, general and administrative expenses $ 1 Derivatives designated as hedging instruments— Interest rate swaps 21 — Finance expense (5) Selling, general and administrative expenses — Derivatives designated as hedging instruments— Cross currency swaps (2) — Cost of revenue and operating expenses (10) Selling, general and administrative expenses (1) Derivatives designated as hedging instruments – Commodity hedge 29 — Cost of revenue and operating expenses 24 Selling, general and administrative expenses — Year ended December 31, 2022 Derivatives designated as hedging instruments— Forward currency forward contracts $ (105) $ (93) Cost of revenue and operating expenses $ (76) Other income (expense) (5) Derivatives designated as hedging instruments— Interest rate swaps 55 — Finance expense 6 Other income (expense) — Derivatives designated as hedging instruments— Cross currency swaps 72 — Cost of revenue and operating expenses — Other income (expense) 4 Derivatives designated as hedging instruments – Commodity hedge (5) — Cost of revenue and operating expenses 26 Other income (expense) (8) The following table presents the effect of derivatives not designated as hedging instruments on the consolidated statements of operations and comprehensive income (loss): (in millions) Location of Gains (Losses) Recognized in Income on Derivative Amount of Gains (Losses) Recognized in Income on Derivative Year ended December 31, 2020 Derivatives not designed as hedging instruments—foreign currency forwards contracts Selling, general and administrative expenses $ 6 Year ended December 31, 2021 Derivatives not designed as hedging instruments—foreign currency forwards contracts Selling, general and administrative expenses $ (17) Year ended December 31, 2022 Derivatives not designed as hedging instruments—foreign currency forwards contracts Other income (expense) $ (22) |
Cash And Cash Equivalents (Tabl
Cash And Cash Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Statement of cash flows [abstract] | |
Disclosure of cash and cash equivalents | (in millions) December 31, December 31, Cash balances on hand and at banks 990 764 Investments in money market funds 953 2,150 Time deposits 401 25 Other cash and cash equivalents 8 — Total $ 2,352 $ 2,939 |
Disclosure of reconciliation of assets and liabilities arising from financing activities | The following are the reconciliation of assets, liabilities and equity arising from financing activities: Non-cash changes (in millions) As of December 31, 2020 Assets (Liabilities and Equity) Cash Flows Inflows/ (Outflows) Addition Foreign exchange movement Others As of December 31, 2021 Assets (Liabilities and Equity) Restricted cash $ 36 $ (34) $ — $ — $ (1) $ 1 Government grants receivable (1) 30 (41) 60 (2) — $ 47 Other receivables 42 (41) 1 (1) (2) $ (1) Debt (2,338) 264 — 51 10 $ (2,013) Lease obligations (465) 78 (52) 12 1 $ (426) Loan from shareholder (10,681) 568 — — 10,113 $ — Share capital (10) (1) — — — $ (11) Additional Paid-In Capital (11,708) (1,443) (10,113) — (223) $ (23,487) Total $ (25,094) $ (650) $ (10,104) $ 60 $ 9,898 $ (25,890) Non-cash changes (in millions) As of December 31, 2021 Assets (Liabilities and Equity) Cash Flows Inflows/ (Outflows) Addition Foreign exchange movement Others As of December 31, 2022 Assets (Liabilities and Equity) Restricted cash $ 1 $ — $ — $ — $ — $ 1 Government grants receivable (2) 47 (93) 18 (1) 81 $ 52 Other receivables (1) — — — — $ (1) Debt (2,013) (670) (6) 10 168 $ (2,511) Lease obligations (426) 89 (18) 9 1 $ (345) Share capital (11) — — — — $ (11) Additional Paid-In Capital (3) (23,487) (168) — — (176) $ (23,831) Total $ (25,890) $ (842) $ (6) $ 18 $ 74 $ (26,646) (1) Government grant receivable amounting to $47 million is included in receivables, prepayments and other assets in the consolidated statements of financial position as of December 31, 2021 (2) Government grant receivable amounting to $52 million is included in receivables, prepayments and other assets in the consolidated statements of financial position as of December 31, 2022 (3) On October 1, 2021, the Company’s board approved the conversion of the Shareholder Loans (defined below) to additional paid-in-capital, and on October 3, 2021, the Company executed an agreement with Mubadala Investment Company PJSC (“Mubadala”) to convert the remaining $10.1 billion of the Shareholder Loan balance into additional paid-in-capital (“the Conversion”). The Conversion did not have an impact on shares outstanding or have any dilutive effects, as no additional shares were issued. |
Disclosure of geographical concentration of cash and cash equivalents | Geographical concentration of cash and cash equivalents is as follows: (in millions) December 31, December 31, United States of America $ 484 $ 1,357 Republic of Singapore 1,775 1,485 Other 93 97 Total $ 2,352 $ 2,939 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Borrowing costs Abstract [Abstract] | |
Disclosure of detailed information about borrowings | (in millions) December 31, December 31, Current: Term loans $ 223 $ 297 Non-current: Term loans 2,288 1,716 Total $ 2,511 $ 2,013 Movements in interest bearing borrowings during the reporting period were as follows: (in millions) December 31, 2022 December 31, 2021 Opening balance $ 2,013 $ 2,338 New loans and borrowings 971 618 Repayments (301) (882) Other (172) (61) Ending balance $ 2,511 $ 2,013 The following table summarizes term loan facilities. The below arrangements are all considered to be secured. Description Currency Nominal Interest Interest Payment Terms Principal Payment Terms Year of Maturity 2022 Carrying Amount 2021 Carrying Amount 2018 Tool Equipment Purchase and Lease Financing (1) USD LIBOR + 1.60% Quarterly Quarterly 2023 19 75 2019 Tool Equipment Purchase and Lease Financing (2) USD LIBOR + 1.75% Quarterly Quarterly 2024 85 84 2019 USD Dresden Equipment Financing (3) USD LIBOR + 1.75% Semi-Annual Semi-Annual 2024 36 36 2020 USD Equipment Financing (4) USD LIBOR + 1.90% Quarterly Quarterly 2025 59 59 2019 EUR Dresden Equipment Financing (3) EUR EURIBOR + 1.75% Semi-Annual Semi-Annual 2026 13 14 Various (5) EUR, USD Various Various Various 2024-2026 11 29 Current total 223 297 Non-current: 2019 Tool Equipment Purchase and Lease Financing (2) USD LIBOR + 1.75% Quarterly Quarterly 2024 21 106 2019 USD Dresden Equipment Financing (3) USD LIBOR + 2.25% Semi-Annual Semi-Annual 2026 108 144 2020 USD Equipment Financing (4) USD LIBOR + 1.90% Quarterly Quarterly 2025 93 152 USD Term Loan A USD LIBOR + 2.90% Quarterly Semi-Annual 2025 649 647 EUR Term Loan A EUR EURIBOR + 2.60% Quarterly Semi-Annual 2025 89 94 2019 EUR Dresden Equipment Financing (3) EUR EURIBOR + 1.75% Semi-Annual Semi-Annual 2026 387 423 2021 SGD EDB Loan SGD 1.40% Semi-annual Semi-annual 2041 923 90 Various EUR, USD Various Various Various 2024-2027 18 60 Non-current total 2,288 1,716 Total $ 2,511 $ 2,013 (1) On March 2, 2018, GLOBALFOUNDRIES SINGAPORE PTE, LTD. (“GFS”) entered into several Equipment Purchase and Lease Agreements with four banks to sell and leaseback certain semiconductor manufacturing equipment located in GFS’ Fabs in Singapore for a total of $375 million. The total minimum lease payments amount to $375 million, to be paid in equal quarterly installments through March 1, 2023. (2) On January 21, 2019, GFS entered into several Equipment Purchase Agreements and Lease Agreements with five banks to sell and leaseback certain semiconductor manufacturing equipment located in GFS’ Fabs in Singapore for a total of $425 million. (3) On October 31, 2019, the Company, GLOBALFOUNDRIES Dresden Module One Limited Liability Company & Co., KG. and GLOBALFOUNDRIES Dresden Module Two Limited Liability Company & Co. KG. entered into a term facilities agreement with Bank of America Merrill Lynch International Designated Activity Company and ING Bank, a branch of ING-DIBA AG, as coordinating mandated lead arrangers, and Bank of America Merrill Lynch International Designated Activity Company as facility and security agent, which provides a maximum incremental facility commitment totaling $750 million secured by certain qualifying equipment assets. (4) On April 23, 2020, GLOBALFOUNDRIES SINGAPORE PTE, LTD. entered into several Equipment Purchase Agreements and Lease Agreements with four banks to sell and leaseback certain semiconductor manufacturing equipment located in GFS’ fabrication facilities in Singapore for a total of $300 million. The following table summarizes unutilized credit facilities available to the Company to maintain liquidity to fund operations: + (in millions) December 31, 2022 December 31, 2021 SGD EDB Loan 42 1,029 Revolving Credit Facility 1,012 1,009 Singapore Factoring — 75 Uncommitted Credit Facilities (1) 64 31 Total $ 1,118 $ 2,144 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of leases | (in millions) December 31, December 31, Amortization of right-of-use assets $ 82 $ 81 Interest expense on lease liabilities 23 27 Short-term and low-value leases expense 1 1 Total net lease cost $ 106 $ 109 Weighted average remaining lease term 7.18 years 6.51 years Weighted average discount rate 4.75 % 6.65 % |
Schedule of lease liabilities | The following is a schedule, by years, of maturities of lease liabilities as of December 31, 2022 and 2021: December 31, 2022 December 31, 2021 (in millions) Minimum Lease Payments Present Value of Payments Minimum Lease Payments Present Value of Payments Within 1 year $ 92 $ 75 $ 157 $ 135 2-5 years 184 146 232 191 After 5 years 151 124 123 100 $ 427 $ 345 $ 512 $ 426 Less: amounts representing finance charges (82) — (86) — Present value of minimum lease payments $ 345 $ 345 $ 426 $ 426 Current 75 135 Non-current 270 291 $ 345 $ 426 Supplemental cash flow information related to leases is as follows: (in millions) December 31, December 31, Cash flows used in operating activities: Payments of short-term and low-value leases $ (1) $ (1) Interest paid (23) (27) Cash flows used in financing activities: Payment of lease obligations (89) (78) |
Disclosure of lease liabilities | The following table summarizes the movement of right-of-use assets which primarily relates to building and leasehold improvements during the years ended December 31, 2022 and 2021 is as follows: (in millions) December 31, December 31, Beginning balance $ 305 $ 292 Additions $ 59 94 Amortization (82) (81) Ending balance $ 282 $ 305 |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Provisions, Contingent Liabilities, and Contingent Assets [Abstract] | |
Schedule of movement in provision for asset retirement obligation | The movement in provision for asset retirement obligations and restructuring charges during the years ended December 31, 2022 and 2021 is as follows: (in millions) December 31, December 31, Beginning balance $ 349 $ 353 Arising during the period 2 — Accretion cost (4) (1) Restructuring charges 91 — Utilized (1) (52) (3) Released to the consolidated statements of operations (2) $ (88) — Ending balance $ 298 $ 349 (1) Includes $40 million related to asset retirement obligations,$7 million related to sale of the EFK business, and $5 million related to restructuring charges. (2) Relates to the derecognition of asset retirement obligation related to the sale of the EFK business. |
Government Grants (Tables)
Government Grants (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Government grants [Abstract] | |
Disclosure of movement in deferred income from government grants | The following table presents the movement in deferred income from government grants for the years ended December 31, 2022 and 2021: (in millions) December 31, December 31, Beginning balance $ 176 $ 169 Received/receivable during the period 270 40 Released to the consolidated statements of operations (42) (33) Ending balance $ 404 $ 176 Current 110 29 Non-current 294 147 $ 404 $ 176 |
Disclosure of government grants recognized in consolidated statement of operations | Government grants were recognized in the consolidated statements of operations and comprehensive income (loss) as follows: (in millions) December 31, December 31, December 31, Cost of revenue $ 30 $ 33 $ 49 Research and development expenses 11 — 2 Selling, general and administrative 1 — — Total balance $ 42 $ 33 $ 51 |
Trade Payables and Other Liab_2
Trade Payables and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Schedule of current and noncurrent trade and other payables | (in millions) December 31, December 31, Current: Trade payables $ 532 $ 551 Accrued expenses 573 603 Contract liabilities (1) 592 533 Advances and deposits (2) 93 309 Payable for PPE and Intangible Assets 961 472 Other (3) 98 118 $ 2,849 $ 2,586 Non-current: Payable for Intangible Assets 92 45 Contract liabilities (1) 1,326 1,368 Deferred tax liabilities 26 2 Other (3) 30 30 $ 1,474 $ 1,445 (1) Contract liabilities comprises contract liabilities for payments received in advance of the satisfaction of performance obligations for wafers, as well as non-recurring engineering services. (2) Advances and deposits include advances from customers of $73 million (2021: $118 million) collected for purchase orders. (3) Other includes other financial liabilities and non-current advances and deposits. See Note 17 for further details on other financial liabilities. |
Explanation of significant changes in contract assets and contract liabilities | The following table presents the activities in accounts payable as of December 31, 2022 and 2021: (in millions) December 31, December 31, Beginning contract liabilities balance $ 1,901 $ 135 Cash receipts in advance of satisfaction of performance obligations 1,189 1,894 Released to the consolidated statements of operations and comprehensive income (loss) (1) (951) (128) Amounts credited to customers (221) — Ending contract liabilities balance $ 1,918 $ 1,901 Current 592 533 Non-current 1,326 1,368 $ 1,918 $ 1,901 (1) Of revenue released to the consolidated statements of operations and comprehensive income (loss) for the years ended December 31, 2022 and 2021, $522 million and $48 million, respectively were included in the beginning balance of the contract liabilities. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Provisions, Contingent Liabilities, and Contingent Assets [Abstract] | |
Summary of commitments | The Company’s unconditional purchase commitments are as follows: (in millions) December 31, December 31, Contracts for capital expenditures $ 2,774 $ 2,995 Contracts for operating expenditures 3,587 3,405 $ 6,361 $ 6,400 Due within the next 12 months $ 2,732 $ 3,543 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings per share [abstract] | |
Schedule of basic and diluted earnings per share | Basic and diluted earnings (loss) per share has been calculated for the years ended December 31, 2022, 2021, and 2020 as follows: 2022 2021 2020 (in millions) Net income (loss) available to equity shareholders of the Company $ 1,448 $ (250) $ (1,350) Weighted average common shares outstanding Basic 539 506 500 Diluted 552 506 500 Total basic and diluted earnings per share attributable to equity shareholders Basic $ 2.69 $ (0.49) $ (2.70) Diluted $ 2.62 $ (0.49) $ (2.70) |
Related Party Disclosures (Tabl
Related Party Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related party [Abstract] | |
Company's which have entered into related party transaction with | The consolidated financial statements include the following subsidiaries which are all wholly owned, except for Advanced Mask Technology Centre GmbH & Co. KG, Maskhouse Building Administration GmbH & Co. KG, Advanced Mask Technology Center Verwaltungs GmbH, and Maskhouse Building Administration Verwaltungs GmbH: Subsidiary Jurisdiction of Incorporation or Organization December 31, 2022 December 31, 2021 December 31, 2020 GLOBALFOUNDRIES Dresden Module One LLC United States X X X GLOBALFOUNDRIES Dresden Module Two LLC United States X X X GLOBALFOUNDRIES Innovation Investments LLC United States X X X GLOBALFOUNDRIES Investments LLC United States X X X GLOBALFOUNDRIES U.S. Inc. United States X X X GLOBALFOUNDRIES U.S. 2 LLC United States X X X GLOBALFOUNDRIES Borrower LLC United States X X X Hudson Valley Research Park Sewage Works Corporation United States X X X Hudson Valley Research Park Water-Works Corporation United States X N/A N/A GF Power LLC United States X N/A N/A GLOBALFOUNDRIES Finance Inc. Cayman Islands X N/A N/A GLOBALFOUNDRIES France SAS France X N/A N/A GLOBALFOUNDRIES Dresden Module One Holding GmbH Germany X X X GLOBALFOUNDRIES Dresden Module One LLC & Co. KG Germany X X X GLOBALFOUNDRIES Dresden Module Two LLC & Co. KG Germany X X X GLOBALFOUNDRIES Dresden Module Two Holding GmbH Germany X X X GLOBALFOUNDRIES Management Services LLC & Co. KG Germany X X X Advanced Mask Technology Centre GmbH & Co. KG (50%) Germany X X N/A Maskhouse Building Administration GmbH & Co. KG (50%) Germany X X N/A Advanced Mask Technology Center Verwaltungs GmbH (50%) Germany X X N/A Maskhouse Building Administration Verwaltungs GmbH (50%) Germany X X N/A GLOBALFOUNDRIES Europe Sales & Support GmbH Germany X X N/A GLOBALFOUNDRIES Engineering Private Limited India X X X GLOBALFOUNDRIES Japan Ltd. Japan X X X GLOBALFOUNDRIES Malaysia SDN. BHD. Malaysia X N/A N/A GLOBALFOUNDRIES Netherlands Cooperatief U.A. The Netherlands X X X GLOBALFOUNDRIES Netherlands Holding B.V. The Netherlands N/A N/A X GLOBALFOUNDRIES Netherlands B.V. The Netherlands N/A N/A X GLOBALFOUNDRIES Bulgaria EAD Bulgaria X X X GF Asia Investments Pte. Ltd. Singapore X X X GF Asia Sales Pte. Ltd. Singapore X X N/A GLOBALFOUNDRIES Singapore Pte. Ltd. Singapore X X X GLOBALFOUNDRIES Taiwan Ltd. Taiwan X X X GLOBALFOUNDRIES Europe Ltd. United Kingdom X X X GA (Chengdu) Technology Co., Limited China X X X GLOBALFOUNDRIES China (Beijing) Co., Limited China X X X GLOBALFOUNDRIES China (Shanghai) Co., Limited China X X X Nanjing APD Technologies Co. Ltd. China N/A X X Below are the related parties which the Company has entered into transactions with: December 31, December 31, Related Party Name SMP Joint venture Joint venture Mubadala Treasury Holding Company (“MTHC”) Shareholder entity Shareholder entity Mubadala Technology Investments LLC (“Mubadala Technology”) Shareholder entity Shareholder entity |
Schedule of balances with related parties included in the consolidated statements of financial position | Balances with related parties included in the consolidated statements of financial positions are as follows: December 31, 2022 December 31, 2021 (in millions) Due from Due to Due from Due to SMP $ 11 $ 10 $ 8 $ 9 Total (1) $ 11 $ 10 $ 8 $ 9 (1) The total amounts of $11 million and $8 million due from related parties as of the years ended December 31, 2022 and 2021, respectively, has been included in receivables, prepayments and other assets (see Note 15). The total amounts of $10 million and $9 million due to related parties’ balance for the years ended December 31, 2022 and 2021, respectively, has been included in trade and other payables (see Note 24). |
Schedule of related party transactions | The following table presents the related party transactions included in the consolidated statements of operations: (in millions) December 31, December 31, December 31, Purchases and recharges from: SMP (1) $ 60 $ 60 $ 58 $ 60 $ 60 $ 58 Other transactions with: SMP (reimbursement of expenses and contribution of tools) $ 52 $ 45 $ 47 Mubadala Technology (reimbursement of expenses) $ — $ 3 $ 1 $ 52 $ 48 $ 48 |
Schedule of compensation to key management personnel | The compensation of key management personnel during the following years were as follows: (in millions) 2022 2021 2020 Chief Executive Officer and Chief Financial Officer Short-term benefits $ 5 $ 8 $ 11 Share-based payments 19 42 — Board of Directors 5 3 1 $ 29 $ 53 $ 12 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-based payment arrangements [Abstract] | |
Disclosure of number and weighted average exercise prices of RSUs and PSUs | Number of RSUs Weighted average grant date fair value Outstanding as of December 31, 2020 — $ — Granted 851,530 $ 39.56 Forfeited (4,100) $ 34.46 Outstanding as of December 31, 2021 847,430 $ 39.59 Granted 3,416,545 $ 57.09 Forfeited (314,158) $ 55.36 Exercised (738,387) $ 49.51 Outstanding as of December 31, 2022 3,211,430 $ 54.39 Number of PSUs Weighted average grant date fair value Outstanding as of December 31, 2021 — $ — Granted 571,277 70.85 Forfeited (34,082) $ 70.91 Outstanding as of December 31, 2022 537,195 $ 70.91 |
Schedule of fair value assumptions | The assumptions used to value the Company’s PSUs granted during the period presented and their expected lives were as follows: December 31, 2022 Expected dividend yield — Expected volatility 45.50% Risk-free interest rate 2.55% The assumptions used to value the Company’s options granted and their expected lives during 2021, were as follows: December 31, 2021 Expected volatility 45.00 % Expected term 4.5 years Risk-free interest rate 0.56 % Estimated ordinary shares valuation $24.64 - $26.04 |
Disclosure of number and weighted average exercise prices of share options | Number of Share options Weighted average exercise price per Share Outstanding as of December 31, 2020 22,286,278 $ 10.04 Granted 995,409 $ 10.00 Forfeited (1,532,129) $ 10.00 Outstanding as of December 31, 2021 21,749,558 $ 10.03 Exercised (14,956,321) $ 10.00 Forfeited (532,634) $ 10.00 Outstanding as of December 31, 2022 6,260,603 $ 10.02 Exercisable balance as of December 31, 2022 4,873,406 $ 10.02 |
Disclosure of number and weighted average remaining contractual life of outstanding share options | The following table summarizes information about employees’ share options outstanding as of December 31, 2022: Outstanding Range of exercise prices Number Outstanding Weighted average remaining contractual life (in years) $ 10.02 6,250,068 2.13 $ 19.07 4,515 4.04 $ 22.54 4,515 4.04 $ 26.00 1,505 4.04 |
Financial Risk Management Obj_2
Financial Risk Management Objectives and Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Financial Instruments [Abstract] | |
Disclosure of nature and extent of risks arising from financial instruments | The following table demonstrates the sensitivity of net income (loss) in the consolidated statements of operations to reasonably possible changes in interest rates, with all other variables held constant. Increase/ (Decrease) in Percentages Effects on Loss before Tax December 31, 2020 10 % $ 19 (10) % $ (19) December 31, 2021 10 % $ — (10 %) $ — December 31, 2022 10 % $ 1 (10) % $ (1) |
Disclosure of derivative financial liabilities | The Company’s exposure to foreign currency risk against financial assets and financial liabilities was as follows, based on notional amounts: (in millions) EUR JPY SGD December 31, 2021 Receivables and prepayments $ 161 $ — $ 13 Cash and cash equivalents 45 2 4 Loans and borrowings (14) — (91) Trade and other payables (254) (73) (147) $ (62) $ (71) $ (221) December 31, 2022 Receivables and prepayments $ 120 $ — $ 16 Cash and cash equivalents 48 4 420 Loans and borrowings 45 — — Trade and other payables (388) (73) (149) $ (175) $ (69) $ 287 |
Disclosure of maturity analysis for derivative financial liabilities | The aging of financial assets including trade receivables is as follows: Past Due but Not Impaired (in millions) Total Neither past < 30 Days 31-90 Days 91-120 Days Great December 31, 2021 $ 1,067 $ 1,023 $ 42 $ 1 $ 1 $ — December 31, 2022 $ 2,254 $ 2,137 $ 84 $ 33 $ — $ — The table below summarizes the maturity profile of the Company’s financial liabilities: (in millions) Carrying Contractual Cash Flows 1 Year or Less 1 to 5 Years Greater than 5 Years Total December 31, 2021 Loans and borrowings $ 2,013 $ 2,205 $ 349 $ 1,736 $ 120 $ 2,205 Lease obligations 426 512 157 232 123 512 Derivative financial liability 66 66 49 17 — 66 Trade payables and other liabilities 1,895 1,895 1,848 47 — 1,895 $ 4,400 $ 4,678 $ 2,403 $ 2,032 $ 243 $ 4,678 December 31, 2022 Loans and borrowings $ 2,511 $ 2,706 $ 229 $ 1,443 $ 1,034 $ 2,706 Lease obligations 345 427 92 184 151 427 Derivative financial liability 66 66 61 5 — 66 Trade payables and other liabilities 2,265 2,265 2,171 63 31 2,265 $ 5,187 $ 5,464 $ 2,553 $ 1,695 $ 1,216 $ 5,464 |
Disclosure of fair value measurement of assets | The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis: Fair Value Measurement at Reporting Date Using (in millions) Total Quoted Significant Significant December 31, 2021 Assets: Cash equivalents (1) $ 2,175 $ 2,150 $ 25 $ — Investments in equity instruments (2) $ 17 $ 1 $ — $ 16 Derivatives (3) $ 25 $ — $ 25 $ — Liabilities: Derivatives (3) $ 66 $ — $ 66 $ — Fair Value Measurement at Reporting Date Using (in millions) Total Quoted Significant Significant December 31, 2022 Assets: Cash equivalents (1) $ 961 $ 961 $ — $ — Investments in equity instruments (2) $ 15 $ — $ — $ 15 Investments in marketable securities (3) $ 994 $ 994 $ — $ — Derivatives (4) $ 177 $ — $ 177 $ — Liabilities: Derivatives (4) $ 66 $ — $ 66 $ — (1) Included in cash and cash equivalents on the Company’s consolidated statements of financial position. (2) Included in current and non-current receivables, prepayments and other assets on the Company’s consolidated statements of financial position. (3) Included in current and non-current marketable securities on the Company’s consolidated statements of financial position. |
Disclosure of financial assets | The carrying and fair values of the Company’s financial instruments not recorded at fair value on a recurring basis are presented in the following table, classified according to the categories of loans and receivables (“LaR”) and financial liabilities at amortized cost (“FLAC”): (in millions) December 31, 2022 December 31, 2021 Financial Liability Category Carrying Fair Value Carrying Fair Value Other long-term debt FLAC 2,511 2,414 2,013 2,006 Total $ 2,511 $ 2,414 $ 2,013 $ 2,006 |
Operating Segments Information
Operating Segments Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Operating Segments [Abstract] | |
Disclosure of geographical areas | For the year ended December 31, Revenue by Geography 2022 2021 2020 (in millions) United States $ 4,898 $ 3,975 $ 3,368 Europe, the Middle East, and Africa 1,182 805 451 Other 2,028 1,805 1,032 $ 8,108 $ 6,585 $ 4,851 Non-current Assets by Geography 2022 2021 (in millions) United States $ 5,149 $ 5,433 Germany 2,462 1,989 Singapore 3,508 1,547 Other 532 412 Total $ 11,651 $ 9,381 |
Disclosure of major customers | For the year ended December 31, Revenue by Major Customer 2022 2021 2020 (in millions) Amount % Amount % Amount % Customer A $ 746 9 $ 811 12 $ 1,001 21 Customer B $ 1,329 16 $ 995 15 $ 537 11 |
Organization (Details)
Organization (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of reclassifications or changes in presentation [line items] | ||||
Gain on sale of East Fishkill (“EFK”) business | $ 403 | $ 0 | $ 0 | |
Discontinued Operations - Tampines, Singapore Facility | ||||
Disclosure of reclassifications or changes in presentation [line items] | ||||
Consideration received | 406 | $ 170 | ||
Gain on sale of East Fishkill (“EFK”) business | $ 403 | |||
Discontinued Operations - Tampines, Singapore Facility | Other disposals of assets | ||||
Disclosure of reclassifications or changes in presentation [line items] | ||||
Consideration received | $ 236 |
Summary of Significant Polici_3
Summary of Significant Policies, Judgements, Estimates and Assumptions - Schedule of Property, Plant, and Equipment (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Useful life (in years) | 10 years | 10 years | |
Computer | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Useful life (in years) | 5 years | ||
Maximum | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Useful life (in years) | 8 years | 8 years | |
Maximum | Leasehold Improvements | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Useful life (in years) | 26 years | ||
Maximum | Equipment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Useful life (in years) | 10 years | ||
Minimum | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Useful life (in years) | 5 years | 5 years | |
Minimum | Equipment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Useful life (in years) | 2 years |
Summary of Significant Polici_4
Summary of Significant Policies, Judgements, Estimates and Assumptions - Recent Accounting Pronouncements, Adopted (Details) - Dec. 31, 2022 € in Millions, $ in Millions | EUR (€) | USD ($) |
Interest rate swaps | ||
Disclosure of financial assets [line items] | ||
Notional Amount | $ | $ 795 | |
Interest rate swaps | Interest Rate Swap Maturing 2023 | ||
Disclosure of financial assets [line items] | ||
Notional Amount | $ | 19 | |
Interest rate swaps | Interest Rate Swap Maturing 2024 | ||
Disclosure of financial assets [line items] | ||
Notional Amount | $ | 624 | |
Interest rate swaps | Interest Rate Swap Maturing 2026 | ||
Disclosure of financial assets [line items] | ||
Notional Amount | $ | $ 152 | |
Cross currency swaps (receive euros/pay US$) | ||
Disclosure of financial assets [line items] | ||
Notional Amount | € | € 475 | |
Cross currency swaps (receive euros/pay US$) | Cross Currency Swap, Three-Month LIBOR, Maturing 2024 | ||
Disclosure of financial assets [line items] | ||
Notional Amount | € | 83 | |
Cross currency swaps (receive euros/pay US$) | Cross Currency Swap, Six-Month LIBOR, Maturing 2024 | ||
Disclosure of financial assets [line items] | ||
Notional Amount | € | 335 | |
Cross currency swaps (receive euros/pay US$) | Cross Currency Swap Maturing 2026 | ||
Disclosure of financial assets [line items] | ||
Notional Amount | € | € 57 |
Summary of Significant Polici_5
Summary of Significant Policies, Judgements, Estimates and Assumptions - Narrative (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2021 USD ($) $ / shares | |
Accounting Policies, Changes In Accounting Estimates And Errors [Abstract] | |
Increase (decrease) in accounting estimate | $ | $ 628 |
Increase in basic earnings per share (in USD per share) | $ 1.24 |
Increase in diluted earnings per share (in USD per share) | $ 1.24 |
Summary of Significant Polici_6
Summary of Significant Policies, Judgements, Estimates and Assumptions - Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Minimum | |
Disclosure of changes in accounting estimates [line items] | |
Useful life (in years) | 3 years |
Summary of Significant Polici_7
Summary of Significant Policies, Judgements, Estimates and Assumptions - government grants (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of changes in accounting estimates [line items] | |||
Income from government grants | $ 42 | $ 33 | $ 51 |
Net Revenue - Disaggregated Rev
Net Revenue - Disaggregated Revenues (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | $ 8,108 | $ 6,585 | $ 4,851 |
Revenue recognized over time | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 445 | 357 | 4,228 |
Revenue recognized at a point in time | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 7,663 | 6,228 | 623 |
Wafer fabrication | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 7,627 | 6,204 | 4,440 |
Engineering and other pre-fabrication services | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | $ 481 | $ 381 | $ 411 |
Net Revenue - Narrative (Detail
Net Revenue - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020 USD ($) | |
Revenue from Contracts with Customers [Abstract] | |
Change in revenue through contract modification | $ 315 |
Change in cost of sales through contract modification | 226 |
Change in gross profit through contract modification | $ 60 |
Cost of Revenue (Details)
Cost of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue from Contracts with Customers [Abstract] | |||
Depreciation and amortisation expense | $ 1,468 | $ 1,422 | $ 2,187 |
Inventory changes and materials costs and other | 1,834 | 1,726 | 1,187 |
Staff costs, maintenance costs, and utilities(2) | 2,567 | 2,424 | 2,189 |
Total cost of revenues | 5,869 | 5,572 | 5,563 |
Staff, maintenance, and utility costs | $ 64 | $ 55 | $ 0 |
Research and Development Expe_3
Research and Development Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Analysis of income and expense [abstract] | |||
Staff costs, maintenance costs, and utilities(1) | $ 247 | $ 257 | $ 230 |
Depreciation of PPE and amortization of intangible assets | 110 | 147 | 220 |
Other | 125 | 74 | 26 |
Research and development expense | 482 | 478 | 476 |
Staff, maintenance, and utility costs | $ 27 | $ 22 | $ 0 |
Selling, General and Administ_3
Selling, General and Administrative Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Analysis of income and expense [abstract] | |||
Staff costs, maintenance costs, and utilities | $ 417 | $ 537 | $ 340 |
Depreciation of PPE and amortization of intangible assets | 45 | 49 | 115 |
Other | 34 | 9 | (10) |
Selling, general and administrative expense | 496 | 595 | 445 |
Expense from share-based payment transactions with employees | $ 92 | $ 152 | $ 1 |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring [Abstract] | |||
Restructuring charges | $ 94 | $ 0 | $ 0 |
Accelerated share-based compensation expense | 3 | ||
Restructuring [Roll Forward] | |||
Beginning balance as of December 31, 2021 | 0 | ||
Restructuring charges | 91 | ||
Amounts paid | 5 | ||
Ending balance as of December 31, 2022 | $ 86 | $ 0 |
Impairment Charges (Details)
Impairment Charges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Total impairment charges | $ 0 | $ 0 | $ 23 |
Property, plant and equipment | |||
Disclosure of impairment loss and reversal of impairment loss [line items] | |||
Total impairment charges | $ 0 | $ 0 | $ 23 |
Finance Expenses (Details)
Finance Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Analysis of income and expense [abstract] | |||
Interest on long-term debt | $ 69 | $ 72 | $ 98 |
Interest on lease obligations | 23 | 27 | 35 |
Commitment fees and amortization of debt issuance costs | 13 | 12 | 18 |
Accretion costs and other | 6 | 3 | 3 |
Total finance expenses | $ 111 | $ 114 | $ 154 |
Gain on Sale of a Business - Na
Gain on Sale of a Business - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of analysis of single amount of discontinued operations [line items] | |||
Deposits from customers | $ 73 | $ 118 | |
Gain on sale of East Fishkill (“EFK”) business | 403 | 0 | $ 0 |
Discontinued Operations - Tampines, Singapore Facility | |||
Disclosure of analysis of single amount of discontinued operations [line items] | |||
Consideration received | 406 | $ 170 | |
Gain on sale of East Fishkill (“EFK”) business | 403 | ||
Net assets | $ (9) |
Gain on Sale of a Business - Sc
Gain on Sale of a Business - Schedule of Net Assets Derecognized (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of analysis of single amount of discontinued operations [line items] | ||
Property, plant and equipment | $ 10,596 | $ 8,713 |
Total Assets | 17,841 | 15,028 |
Lease liabilities | (345) | (426) |
Total Liabilities | (7,881) | $ (6,995) |
Discontinued Operations - Tampines, Singapore Facility | ||
Disclosure of analysis of single amount of discontinued operations [line items] | ||
Property, plant and equipment | 83 | |
Inventories | 43 | |
Total Assets | 126 | |
Lease liabilities | (47) | |
Other current and non-current liabilities | (88) | |
Total Liabilities | (135) | |
Net Liabilities | $ (9) |
Other Income (Expense), Net (De
Other Income (Expense), Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Analysis of income and expense [abstract] | |||
Gain on legal settlement | $ 0 | $ 0 | $ 294 |
Gain on remeasurement of existing interests | 0 | 0 | 38 |
Other | 22 | (8) | 110 |
Total other income (expense), net | $ 22 | $ (8) | $ 442 |
Property, Plant And Equipment -
Property, Plant And Equipment - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Right-of-use assets | $ 282 | $ 305 | $ 292 |
Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Right-of-use assets | 888 | 907 | |
Accumulated Depreciation and Impairment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Right-of-use assets | $ (82) | $ (81) | $ (57) |
Property, Plant And Equipment_2
Property, Plant And Equipment - Summary of Property, Plant And Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment at beginning of period | $ 8,713 | |
Property, plant and equipment at end of period | 10,596 | $ 8,713 |
Investment tax credits, property plant and equipment | 214 | 179 |
Land and Land Improvements | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment at beginning of period | 93 | |
Property, plant and equipment at end of period | 83 | 93 |
Building and Leasehold Improvements | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment at beginning of period | 3,310 | |
Property, plant and equipment at end of period | 3,323 | 3,310 |
Equipment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment at beginning of period | 3,843 | |
Property, plant and equipment at end of period | 3,765 | 3,843 |
Computer | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment at beginning of period | 51 | |
Property, plant and equipment at end of period | 48 | 51 |
Construction in Progress | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment at beginning of period | 1,416 | |
Property, plant and equipment at end of period | 3,377 | 1,416 |
Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment at beginning of period | 31,914 | 30,446 |
Additions | 3,658 | 1,925 |
Transfers from construction in progress | 0 | 0 |
Disposals | (1,169) | (423) |
Effects of exchange rate changes | (22) | (34) |
Property, plant and equipment at end of period | 34,381 | 31,914 |
Cost | Land and Land Improvements | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment at beginning of period | 130 | 104 |
Additions | 0 | 26 |
Transfers from construction in progress | 1 | 0 |
Disposals | (8) | 0 |
Effects of exchange rate changes | (1) | 0 |
Property, plant and equipment at end of period | 122 | 130 |
Cost | Building and Leasehold Improvements | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment at beginning of period | 7,576 | 7,441 |
Additions | 67 | 71 |
Transfers from construction in progress | 409 | 116 |
Disposals | (182) | (46) |
Effects of exchange rate changes | (3) | (6) |
Property, plant and equipment at end of period | 7,867 | 7,576 |
Cost | Equipment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment at beginning of period | 22,350 | 22,039 |
Additions | 27 | 33 |
Transfers from construction in progress | 935 | 677 |
Disposals | (725) | (371) |
Effects of exchange rate changes | (18) | (28) |
Property, plant and equipment at end of period | 22,569 | 22,350 |
Cost | Computer | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment at beginning of period | 435 | 411 |
Additions | 0 | 1 |
Transfers from construction in progress | 21 | 28 |
Disposals | (17) | (5) |
Effects of exchange rate changes | 0 | 0 |
Property, plant and equipment at end of period | 439 | 435 |
Cost | Construction in Progress | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment at beginning of period | 1,423 | 451 |
Additions | 3,564 | 1,794 |
Transfers from construction in progress | (1,366) | (821) |
Disposals | (237) | (1) |
Effects of exchange rate changes | 0 | 0 |
Property, plant and equipment at end of period | 3,384 | 1,423 |
Accumulated Depreciation and Impairment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment at beginning of period | (23,201) | (22,220) |
Additions | (1,447) | (1,411) |
Disposals | 858 | 411 |
Effects of exchange rate changes | 5 | 19 |
Property, plant and equipment at end of period | (23,785) | (23,201) |
Accumulated Depreciation and Impairment | Land and Land Improvements | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment at beginning of period | (37) | (31) |
Additions | (6) | (6) |
Disposals | 4 | 0 |
Effects of exchange rate changes | 0 | 0 |
Property, plant and equipment at end of period | (39) | (37) |
Accumulated Depreciation and Impairment | Building and Leasehold Improvements | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment at beginning of period | (4,266) | (3,866) |
Additions | (443) | (444) |
Disposals | 164 | 44 |
Effects of exchange rate changes | 1 | 0 |
Property, plant and equipment at end of period | (4,544) | (4,266) |
Accumulated Depreciation and Impairment | Equipment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment at beginning of period | (18,507) | (17,952) |
Additions | (975) | (936) |
Disposals | 674 | 362 |
Effects of exchange rate changes | 4 | 19 |
Property, plant and equipment at end of period | (18,804) | (18,507) |
Accumulated Depreciation and Impairment | Computer | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment at beginning of period | (384) | (364) |
Additions | (23) | (25) |
Disposals | 16 | 5 |
Effects of exchange rate changes | 0 | 0 |
Property, plant and equipment at end of period | (391) | (384) |
Accumulated Depreciation and Impairment | Construction in Progress | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment at beginning of period | (7) | (7) |
Additions | 0 | 0 |
Disposals | 0 | 0 |
Effects of exchange rate changes | 0 | 0 |
Property, plant and equipment at end of period | $ (7) | $ (7) |
Property, plant and equipment_3
Property, plant and equipment - Schedule of Depreciation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Depreciation expense | $ 2,238 | $ 1,411 | $ 1,447 |
Cost of revenue | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Depreciation expense | 2,087 | 1,309 | 1,377 |
Research and development expenses | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Depreciation expense | 121 | 73 | 40 |
Selling, general and administrative expenses | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Depreciation expense | $ 30 | $ 29 | $ 30 |
Goodwill - Schedule of Goodwill
Goodwill - Schedule of Goodwill and Intangible Assets Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets and goodwill at beginning of period | $ 377 | |
Intangible assets and goodwill at end of period | 363 | $ 377 |
Technology, Licenses and Similar Rights | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets and goodwill at beginning of period | 335 | |
Intangible assets and goodwill at end of period | 246 | 335 |
Software | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets and goodwill at beginning of period | 6 | |
Intangible assets and goodwill at end of period | 92 | 6 |
Patents | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets and goodwill at beginning of period | 17 | |
Intangible assets and goodwill at end of period | 1 | 17 |
Goodwill | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets and goodwill at beginning of period | 18 | |
Intangible assets and goodwill at end of period | 18 | 18 |
Others | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets and goodwill at beginning of period | 1 | |
Intangible assets and goodwill at end of period | 6 | 1 |
Cost | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets and goodwill at beginning of period | 1,865 | 1,913 |
Additions | 163 | 37 |
Disposals | (62) | (85) |
Intangible assets and goodwill at end of period | 1,966 | 1,865 |
Cost | Technology, Licenses and Similar Rights | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets and goodwill at beginning of period | 1,202 | 1,249 |
Additions | 62 | 33 |
Disposals | (47) | (80) |
Intangible assets and goodwill at end of period | 1,217 | 1,202 |
Cost | Software | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets and goodwill at beginning of period | 284 | 280 |
Additions | 96 | 4 |
Disposals | (12) | 0 |
Intangible assets and goodwill at end of period | 368 | 284 |
Cost | Patents | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets and goodwill at beginning of period | 229 | 234 |
Additions | 0 | 0 |
Disposals | (3) | (5) |
Intangible assets and goodwill at end of period | 226 | 229 |
Cost | Goodwill | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets and goodwill at beginning of period | 18 | 18 |
Additions | 0 | 0 |
Disposals | 0 | 0 |
Intangible assets and goodwill at end of period | 18 | 18 |
Cost | Others | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets and goodwill at beginning of period | 132 | 132 |
Additions | 5 | 0 |
Disposals | 0 | 0 |
Intangible assets and goodwill at end of period | 137 | 132 |
Accumulated Depreciation and Impairment | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets and goodwill at beginning of period | (1,488) | (1,365) |
Additions | (176) | (207) |
Disposals | 61 | 84 |
Intangible assets and goodwill at end of period | (1,603) | (1,488) |
Accumulated Depreciation and Impairment | Technology, Licenses and Similar Rights | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets and goodwill at beginning of period | (867) | (785) |
Additions | (150) | (162) |
Disposals | 46 | 80 |
Intangible assets and goodwill at end of period | (971) | (867) |
Accumulated Depreciation and Impairment | Software | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets and goodwill at beginning of period | (278) | (263) |
Additions | (10) | (15) |
Disposals | 12 | 0 |
Intangible assets and goodwill at end of period | (276) | (278) |
Accumulated Depreciation and Impairment | Patents | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets and goodwill at beginning of period | (212) | (186) |
Additions | (16) | (30) |
Disposals | 3 | 4 |
Intangible assets and goodwill at end of period | (225) | (212) |
Accumulated Depreciation and Impairment | Goodwill | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets and goodwill at beginning of period | 0 | 0 |
Additions | 0 | 0 |
Disposals | 0 | 0 |
Intangible assets and goodwill at end of period | 0 | 0 |
Accumulated Depreciation and Impairment | Others | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets and goodwill at beginning of period | (131) | (131) |
Additions | 0 | 0 |
Disposals | 0 | 0 |
Intangible assets and goodwill at end of period | $ (131) | $ (131) |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Amortization Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about intangible assets [line items] | |||
Amortization expenses | $ 176 | $ 207 | $ 284 |
Cost of revenue | |||
Disclosure of detailed information about intangible assets [line items] | |||
Amortization expenses | 91 | 113 | 100 |
Research and development expenses | |||
Disclosure of detailed information about intangible assets [line items] | |||
Amortization expenses | 70 | 74 | 99 |
Selling, general and administrative expenses | |||
Disclosure of detailed information about intangible assets [line items] | |||
Amortization expenses | $ 15 | $ 20 | $ 85 |
Income Taxes - Income tax benef
Income Taxes - Income tax benefit (expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current income tax expense: | |||
Current income tax benefit (expense) | $ (14) | $ 2 | $ (29) |
Adjustments in respect of current income tax of previous year | (5) | (1) | 0 |
Deferred tax | |||
Net operating and investment allowance carryforwards | (44) | (78) | 35 |
Currency effect on non-monetary assets of subsidiary | (12) | (37) | 43 |
Other change in temporary differences | (11) | 36 | (37) |
Income tax benefit (expense) | $ (86) | $ (78) | $ 12 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of income tax expense applying statutory tax and effective tax rates (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income taxes [Abstract] | |||
Income (Loss) before income taxes | $ 1,532 | $ (176) | $ (1,365) |
Tax at Enacted Statutory Rate | 0 | 0 | 0 |
Foreign tax rate differential | (98) | (75) | 59 |
Adjustments in respect to current income tax of previous years | (5) | (1) | 0 |
Government grants exempt from tax | 7 | 5 | 13 |
Deductible expense for tax purpose | 0 | (1) | (8) |
Impact of unrecognized deferred tax assets | 57 | 9 | (63) |
Non-deductible expenses for tax purposes | (21) | (4) | 0 |
Effects of foreign exchange gains (loss) | 14 | 22 | (40) |
Impact of change in liability for uncertain tax positions | 1 | 7 | 9 |
Withholding Tax | (11) | 0 | (34) |
Other effects | (2) | 4 | (4) |
Income tax benefit (expense) | $ (86) | $ (78) | $ 12 |
Effective income tax rate | (5.60%) | 44.30% | (0.90%) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Tax expense (income) at applicable tax rate | $ 0 | $ 0 | $ 0 |
Withholding tax | 11 | 0 | 34 |
Unrecognized deferred tax asset | 3,708 | 3,355 | |
Profit (loss), attributable to owners of parent | (1,448) | 250 | 1,350 |
Deferred tax assets | 292 | 353 | |
Deferred tax liabilities with joint ventrures | 0 | ||
Current income tax receivable | 1 | ||
Current income tax payable | 14 | 14 | |
Unused Capital Allowances | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 713 | 1,169 | |
Unused tax losses | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 58 | 58 | |
Unused Investment Allowances | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | $ 843 | 843 | |
Republic of Singapore | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets realized (as a percent) | 100% | ||
Tax expense (income) at applicable tax rate | $ 64 | ||
Current income tax payable | $ 9 | 9 | |
Uncertain tax provisions | 8 | 9 | |
Germany | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Profit (loss), attributable to owners of parent | 1,132 | 1,182 | |
Trade tax losses | $ 851 | 898 | |
Maximum operating loss carryforwards (as a percent) | 60% | ||
United States of America | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Current income tax payable | $ 3 | 3 | |
Uncertain tax provisions | 0 | 0 | |
United States of America | Operating Loss Carryforward | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Operating loss carryforward | 7,307 | 8,066 | |
United States of America | Unused Tax Credits Due to Expire | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Operating loss carryforward | 5,762 | ||
United States of America | Unused Research and Development Tax Credits | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Unrecognized deferred tax asset | 157 | 146 | |
CALIFORNIA | Operating Loss Carryforward | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Operating loss carryforward | 822 | 854 | |
CALIFORNIA | Unused Research and Development Tax Credits | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Unrecognized deferred tax asset | 17 | 15 | |
Other states | Operating Loss Carryforward | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Operating loss carryforward | 885 | 963 | |
NEW YORK | Nonrefundable New York Empire Zone | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Unrecognized deferred tax asset | 1,115 | 1,115 | |
Texas, Minnesota, Vermont, North Carolina, and New Jersey | Operating Loss Carryforward | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Unrecognized deferred tax asset | 8 | 8 | |
Europe | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Current income tax payable | 2 | 2 | |
Uncertain tax provisions | $ 0 | $ 3 |
Income Taxes - schedule of Defe
Income Taxes - schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax liability (asset) | $ 266 | $ 351 | $ 435 |
Accelerated depreciation on property, plant and equipment | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax liability (asset) | (18) | (458) | |
Losses, credits and investment allowances available for offsetting against future taxable income | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax liability (asset) | 277 | 394 | |
Accrued expenses | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax liability (asset) | 16 | 349 | |
Inventory | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax liability (asset) | 1 | 65 | |
Other comprehensive income | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax liability (asset) | (8) | 0 | |
Currency effect | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax liability (asset) | 0 | (8) | |
Deferred income | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax liability (asset) | 0 | 10 | |
Other | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax liability (asset) | $ (2) | $ (1) |
Income Taxes - Classification o
Income Taxes - Classification of deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Income taxes [Abstract] | |||
Deferred tax assets | $ 292 | $ 353 | |
Deferred tax liabilities(1) | (26) | (2) | |
Deferred tax liability (asset) | $ 266 | $ 351 | $ 435 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Deferred Tax assets, Net (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Beginning balance | $ (351) | $ (435) |
Tax expense recognized to consolidated statements of operations | (67) | (79) |
Tax benefit (expense) recognized to other comprehensive income (loss) | (18) | 3 |
Uncertain tax positions and others | 0 | (8) |
Ending balance | $ (266) | $ (351) |
Receivables, Prepayments and _3
Receivables, Prepayments and Other Assets - Summary of Receivables, Prepayments and Other Assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Current: | |||
Trade receivables, other than related parties | $ 824 | $ 872 | |
Other receivables | 497 | 238 | |
Unbilled accounts receivable | 24 | 43 | $ 62 |
Receivables from government grant | 52 | 47 | |
Receivables from related parties | 11 | 8 | |
Other current financial assets | 79 | 23 | |
Total | 1,487 | 1,231 | |
Non-current: | |||
Advances to suppliers | 235 | 199 | |
Non-trade receivables | 10 | 13 | |
Payment in Lieu of Tax (“PILOT”’) Bonds | 11 | 8 | |
Other | 25 | 34 | |
Total | $ 281 | $ 254 |
Receivables, Prepayments and _4
Receivables, Prepayments and Other Assets - Schedule of Unbilled Accounts Receivable (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Trade and other current receivables [abstract] | ||
Beginning balance | $ 43 | $ 62 |
Revenue recognized during the year | 87 | 44 |
Amounts invoiced | (106) | (69) |
Other | 0 | 6 |
Ending balance | $ 24 | $ 43 |
Receivables, Prepayments and _5
Receivables, Prepayments and Other Assets - Maturity Schedule (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of provision matrix [line items] | ||
Trade receivables, other than related parties | $ 824 | $ 872 |
Receivables neither past due nor impaired | ||
Disclosure of provision matrix [line items] | ||
Trade receivables, other than related parties | 708 | 830 |
Less than 30 days | ||
Disclosure of provision matrix [line items] | ||
Trade receivables, other than related parties | 83 | 41 |
31 to 60 days | ||
Disclosure of provision matrix [line items] | ||
Trade receivables, other than related parties | 22 | 0 |
61 to 90 days | ||
Disclosure of provision matrix [line items] | ||
Trade receivables, other than related parties | 11 | 0 |
90 to 120 days | ||
Disclosure of provision matrix [line items] | ||
Trade receivables, other than related parties | $ 0 | $ 1 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Inventories [Abstract] | |||
Work in progress | $ 1,079 | $ 961 | |
Raw materials and supplies | 375 | 260 | |
Inventory reserves | (115) | (100) | $ (243) |
Total | $ 1,339 | $ 1,121 |
Inventories - Inventory Reserve
Inventories - Inventory Reserve Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Inventories [Abstract] | ||
Beginning balance | $ 115,000 | $ 100,000 |
Additions | 88,000 | 126,000 |
Written-off and scrapped | (35,000) | (29,000) |
Elimination of reserves upon sale of inventory | (38,000) | (240,000) |
Ending balance | $ 100,000 | 243,000 |
Additions during period arising from adjustment to cost of revenues | $ 26,000 |
Other Financial Assets And Li_3
Other Financial Assets And Liabilities - Financial Assets and Liabilities (Details) € in Millions | Dec. 31, 2022 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Disclosure of financial assets and liabilities [Line Items] | |||
Financial assets, at fair value | $ 2,414,000,000 | $ 2,006,000,000 | |
Derivative financial assets | 177,000,000 | 25,000,000 | |
Forward Contracts, Currency Swap | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Current derivative financial assets | 69,000,000 | ||
Non-current derivative financial assets | 3,000,000 | ||
Derivative financial assets | 6,000,000 | ||
Interest rate swaps | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Derivative financial assets | 42,000,000 | ||
Currency risk | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Notional Amount | 4,108,000,000 | 4,147,000,000 | |
Currency risk | Euro forward contracts (receive euros/pay US$) | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Notional Amount | 1,203,000,000 | 1,240,000,000 | |
Average Foreign Currency/ US$ | $ 940 | $ 860 | |
Average Strike Price | 0% | 0% | 0% |
Currency risk | Singapore dollar forward contracts (receive Singapore$/pay US$) | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Notional Amount | $ 496,000,000 | $ 858,000,000 | |
Average Foreign Currency/ US$ | $ 1,370 | $ 1,350 | |
Average Strike Price | 0% | 0% | 0% |
Currency risk | Japanese yen forward contracts (receive Japanese yen/pay US$) | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Notional Amount | $ 236,000,000 | $ 300,000,000 | |
Average Foreign Currency/ US$ | $ 127,220 | $ 112,770 | |
Average Strike Price | 0% | 0% | 0% |
Currency risk | Interest rate swaps | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Notional Amount | $ 795,000,000 | $ 993,000,000 | |
Average Foreign Currency/ US$ | $ 0 | $ 0 | |
Currency risk | Interest rate swaps | Minimum | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Average Strike Price | 0.382% | 0.382% | 0.382% |
Currency risk | Interest rate swaps | Maximum | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Average Strike Price | 1.731% | 1.731% | 1.731% |
Currency risk | Cross currency swaps (receive euros/pay US$) | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Notional Amount | € 475 | $ 551,000,000 | |
Average Foreign Currency/ US$ | $ 890 | $ 890 | |
Currency risk | Cross currency swaps (receive euros/pay US$) | Minimum | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Average Strike Price | 3.834% | 3.834% | 3.834% |
Currency risk | Cross currency swaps (receive euros/pay US$) | Maximum | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Average Strike Price | 4.182% | 4.182% | 4.182% |
Currency risk | Cross currency swaps (receive Singapore $/pay US$) | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Notional Amount | $ 796,000,000 | $ 109,000,000 | |
Average Foreign Currency/ US$ | $ 1,370 | $ 1,370 | |
Currency risk | Cross currency swaps (receive Singapore $/pay US$) | Minimum | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Average Strike Price | 1.83% | 1.83% | 1.83% |
Currency risk | Cross currency swaps (receive Singapore $/pay US$) | Maximum | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Average Strike Price | 1.941% | 1.941% | 1.941% |
Currency risk | Commodity hedge | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Notional Amount | $ 47,000,000 | $ 96,000,000 | |
Average Foreign Currency/ US$ | $ 0 | $ 0 | |
Average Strike Price | 51,256,000% | 51,256,000% | 0% |
Currency risk | Other Current Financial Liabilities | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Financial assets, at fair value | $ (61,000,000) | $ (49,000,000) | |
Currency risk | Other Current Financial Liabilities | Euro forward contracts (receive euros/pay US$) | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Financial assets, at fair value | (32,000,000) | (38,000,000) | |
Currency risk | Other Current Financial Liabilities | Singapore dollar forward contracts (receive Singapore$/pay US$) | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Financial assets, at fair value | (1,000,000) | (3,000,000) | |
Currency risk | Other Current Financial Liabilities | Japanese yen forward contracts (receive Japanese yen/pay US$) | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Financial assets, at fair value | (20,000,000) | (7,000,000) | |
Currency risk | Other Current Financial Liabilities | Interest rate swaps | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Financial assets, at fair value | 0 | 0 | |
Currency risk | Other Current Financial Liabilities | Cross currency swaps (receive euros/pay US$) | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Financial assets, at fair value | 0 | 0 | |
Currency risk | Other Current Financial Liabilities | Cross currency swaps (receive Singapore $/pay US$) | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Financial assets, at fair value | 0 | 0 | |
Currency risk | Other Current Financial Liabilities | Commodity hedge | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Financial assets, at fair value | (8,000,000) | (1,000,000) | |
Currency risk | Other Non-current Financial Liabilities | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Financial assets, at fair value | (5,000,000) | (17,000,000) | |
Currency risk | Other Non-current Financial Liabilities | Euro forward contracts (receive euros/pay US$) | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Financial assets, at fair value | 0 | 0 | |
Currency risk | Other Non-current Financial Liabilities | Singapore dollar forward contracts (receive Singapore$/pay US$) | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Financial assets, at fair value | 0 | 0 | |
Currency risk | Other Non-current Financial Liabilities | Japanese yen forward contracts (receive Japanese yen/pay US$) | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Financial assets, at fair value | 0 | 0 | |
Currency risk | Other Non-current Financial Liabilities | Interest rate swaps | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Financial assets, at fair value | 0 | (8,000,000) | |
Currency risk | Other Non-current Financial Liabilities | Cross currency swaps (receive euros/pay US$) | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Financial assets, at fair value | (3,000,000) | (4,000,000) | |
Notional Amount | 535,000,000 | ||
Currency risk | Other Non-current Financial Liabilities | Cross currency swaps (receive Singapore $/pay US$) | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Financial assets, at fair value | 0 | (4,000,000) | |
Currency risk | Other Non-current Financial Liabilities | Commodity hedge | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Financial assets, at fair value | (2,000,000) | (1,000,000) | |
Currency risk | Other Current Financial Assets | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Financial assets, at fair value | 79,000,000 | 23,000,000 | |
Currency risk | Other Current Financial Assets | Euro forward contracts (receive euros/pay US$) | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Financial assets, at fair value | 46,000,000 | 4,000,000 | |
Currency risk | Other Current Financial Assets | Singapore dollar forward contracts (receive Singapore$/pay US$) | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Financial assets, at fair value | 15,000,000 | 3,000,000 | |
Currency risk | Other Current Financial Assets | Japanese yen forward contracts (receive Japanese yen/pay US$) | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Financial assets, at fair value | 18,000,000 | 2,000,000 | |
Currency risk | Other Current Financial Assets | Interest rate swaps | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Financial assets, at fair value | 0 | 0 | |
Currency risk | Other Current Financial Assets | Cross currency swaps (receive euros/pay US$) | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Financial assets, at fair value | 0 | 0 | |
Currency risk | Other Current Financial Assets | Cross currency swaps (receive Singapore $/pay US$) | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Financial assets, at fair value | 0 | 0 | |
Currency risk | Other Current Financial Assets | Commodity hedge | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Financial assets, at fair value | 0 | 14,000,000 | |
Currency risk | Other Non-current Financial Assets | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Financial assets, at fair value | 98,000,000 | 2,000,000 | |
Currency risk | Other Non-current Financial Assets | Euro forward contracts (receive euros/pay US$) | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Financial assets, at fair value | 3,000,000 | 0 | |
Currency risk | Other Non-current Financial Assets | Singapore dollar forward contracts (receive Singapore$/pay US$) | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Financial assets, at fair value | 0 | 0 | |
Currency risk | Other Non-current Financial Assets | Japanese yen forward contracts (receive Japanese yen/pay US$) | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Financial assets, at fair value | 0 | 0 | |
Currency risk | Other Non-current Financial Assets | Interest rate swaps | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Financial assets, at fair value | 42,000,000 | ||
Currency risk | Other Non-current Financial Assets | Cross currency swaps (receive euros/pay US$) | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Financial assets, at fair value | 2,000,000 | 0 | |
Currency risk | Other Non-current Financial Assets | Cross currency swaps (receive Singapore $/pay US$) | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Financial assets, at fair value | 51,000,000 | 0 | |
Currency risk | Other Non-current Financial Assets | Commodity hedge | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Financial assets, at fair value | $ 0 | $ 2,000,000 |
Other Financial Assets And Li_4
Other Financial Assets And Liabilities - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of financial assets and liabilities [Line Items] | |||
Other comprehensive income that will be reclassified to profit or loss, net of tax | $ 137 | $ (54) | $ (25) |
Cash flow hedges | |||
Disclosure of financial assets and liabilities [Line Items] | |||
Other comprehensive income that will be reclassified to profit or loss, net of tax | $ 17 |
Other Financial Assets And Li_5
Other Financial Assets And Liabilities - Fair Value and Location of Derivative Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Derivatives Designated As Hedging Instruments [Abstract] | ||
Assets Derivatives | $ 177 | $ 25 |
Liabilities Derivatives | (66) | (66) |
Forward Contracts, Currency Swap | ||
Derivatives Not Designated As Hedging Instruments [Abstract] | ||
Assets Derivatives | 10 | 3 |
Liabilities Derivatives | (1) | (2) |
Forward Contracts, Currency Swap | ||
Derivatives Designated As Hedging Instruments [Abstract] | ||
Assets Derivatives | 6 | |
Liabilities Derivatives | (52) | (46) |
Interest rate swaps | ||
Derivatives Designated As Hedging Instruments [Abstract] | ||
Assets Derivatives | 42 | |
Liabilities Derivatives | 0 | (8) |
Cross currency swaps (receive euros/pay US$) | ||
Derivatives Designated As Hedging Instruments [Abstract] | ||
Assets Derivatives | 53 | 0 |
Liabilities Derivatives | (3) | (8) |
Commodity hedge | ||
Derivatives Designated As Hedging Instruments [Abstract] | ||
Assets Derivatives | 0 | 14 |
Liabilities Derivatives | (8) | (1) |
Other Hedging Instrument | ||
Derivatives Designated As Hedging Instruments [Abstract] | ||
Assets Derivatives | 0 | 2 |
Liabilities Derivatives | $ (2) | $ (1) |
Other Financial Assets And Li_6
Other Financial Assets And Liabilities - Effect on Financial Statements (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Forward Contracts, Currency Swap | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Amount of Gains (Losses) Recognized in Accumulated OCI on Derivatives (effective Portion) | $ (105) | $ (76) |
Amount of Gains (Losses) Reclassified from Accumulated OCI to cost of Property, Plant and Equipment | (93) | (6) |
Amounts of Gains (Losses) Reclassified from Accumulated OCI into Income (Effective Portion) | (76) | 11 |
Amount of Gain (Losses) Recognized into income (Ineffective Portion) | (5) | 1 |
Interest rate swaps | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Amount of Gains (Losses) Recognized in Accumulated OCI on Derivatives (effective Portion) | 55 | 21 |
Amount of Gains (Losses) Reclassified from Accumulated OCI to cost of Property, Plant and Equipment | 0 | 0 |
Amounts of Gains (Losses) Reclassified from Accumulated OCI into Income (Effective Portion) | 6 | (5) |
Amount of Gain (Losses) Recognized into income (Ineffective Portion) | 0 | 0 |
Cross currency swaps (receive euros/pay US$) | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Amount of Gains (Losses) Recognized in Accumulated OCI on Derivatives (effective Portion) | 72 | (2) |
Amount of Gains (Losses) Reclassified from Accumulated OCI to cost of Property, Plant and Equipment | 0 | 0 |
Amounts of Gains (Losses) Reclassified from Accumulated OCI into Income (Effective Portion) | 0 | (10) |
Amount of Gain (Losses) Recognized into income (Ineffective Portion) | 4 | (1) |
Commodity hedge | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Amount of Gains (Losses) Recognized in Accumulated OCI on Derivatives (effective Portion) | (5) | 29 |
Amount of Gains (Losses) Reclassified from Accumulated OCI to cost of Property, Plant and Equipment | 0 | 0 |
Amounts of Gains (Losses) Reclassified from Accumulated OCI into Income (Effective Portion) | 26 | 24 |
Amount of Gain (Losses) Recognized into income (Ineffective Portion) | $ (8) | $ 0 |
Other Financial Assets And Li_7
Other Financial Assets And Liabilities - Effect of Derivatives on Statements of Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financial Instruments [Abstract] | |||
Amount of Gains (Losses) Recognized in Income on Derivative | $ (22) | $ (17) | $ 6 |
Cash And Cash Equivalents - Sch
Cash And Cash Equivalents - Schedule of Cash and Cash equivalents (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of cash flows [abstract] | ||||
Cash balances on hand and at banks | $ 990 | $ 764 | ||
Investments in money market funds | 953 | 2,150 | ||
Time deposits | 401 | 25 | ||
Other cash and cash equivalents | 8 | 0 | ||
Total | $ 2,352 | $ 2,939 | $ 908 | $ 997 |
Cash And Cash Equivalents - Rec
Cash And Cash Equivalents - Reconciliation of Assets and Liabilities Arising from Financing Activities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 03, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Changes in liabilities arising from financing activities [abstract] | |||
Liabilities arising from financing activities at beginning of period | $ (25,890) | $ (25,094) | |
Cash Flows Inflows/ (Outflows) | (842) | (650) | |
Addition | (6) | (10,104) | |
Foreign exchange movement | 18 | 60 | |
Others | 74 | 9,898 | |
Liabilities arising from financing activities at end of period | (26,646) | (25,890) | |
Cash and cash equivalents at the end of the year | 2,352 | 2,939 | |
Receivables from government grant | 52 | 47 | |
Debt | |||
Changes in liabilities arising from financing activities [abstract] | |||
Liabilities arising from financing activities at beginning of period | (2,013) | (2,338) | |
Cash Flows Inflows/ (Outflows) | (670) | 264 | |
Addition | (6) | ||
Foreign exchange movement | 10 | 51 | |
Others | 168 | 10 | |
Liabilities arising from financing activities at end of period | (2,511) | (2,013) | |
Lease obligations | |||
Changes in liabilities arising from financing activities [abstract] | |||
Liabilities arising from financing activities at beginning of period | (426) | (465) | |
Cash Flows Inflows/ (Outflows) | 89 | 78 | |
Addition | (18) | (52) | |
Foreign exchange movement | 9 | 12 | |
Others | 1 | 1 | |
Liabilities arising from financing activities at end of period | (345) | (426) | |
Loan from Shareholder | |||
Changes in liabilities arising from financing activities [abstract] | |||
Liabilities arising from financing activities at beginning of period | 0 | (10,681) | |
Cash Flows Inflows/ (Outflows) | 568 | ||
Others | 10,113 | ||
Liabilities arising from financing activities at end of period | 0 | ||
Share capital | |||
Changes in liabilities arising from financing activities [abstract] | |||
Liabilities arising from financing activities at beginning of period | (11) | (10) | |
Cash Flows Inflows/ (Outflows) | (1) | ||
Liabilities arising from financing activities at end of period | (11) | (11) | |
Additional Paid-In Capital | |||
Changes in liabilities arising from financing activities [abstract] | |||
Liabilities arising from financing activities at beginning of period | (23,487) | (11,708) | |
Cash Flows Inflows/ (Outflows) | (168) | (1,443) | |
Addition | $ 10,100 | ||
Addition | (10,113) | ||
Others | (176) | (223) | |
Liabilities arising from financing activities at end of period | (23,831) | (23,487) | |
Restricted cash | |||
Changes in liabilities arising from financing activities [abstract] | |||
Assets arising from financing activities at beginning of period | 1 | 36 | |
Cash Flows Inflows/ (Outflows) | (34) | ||
Others | (1) | ||
Assets arising from financing activities at end of period | 1 | 1 | |
Government grants receivable | |||
Changes in liabilities arising from financing activities [abstract] | |||
Assets arising from financing activities at beginning of period | 47 | 30 | |
Cash Flows Inflows/ (Outflows) | (93) | (41) | |
Addition | 18 | 60 | |
Foreign exchange movement | (1) | (2) | |
Others | 81 | ||
Assets arising from financing activities at end of period | 52 | 47 | |
Receivables from government grant | 52 | 47 | |
Other receivables | |||
Changes in liabilities arising from financing activities [abstract] | |||
Assets arising from financing activities at beginning of period | (1) | 42 | |
Liabilities arising from financing activities at beginning of period | (1) | ||
Cash Flows Inflows/ (Outflows) | (41) | ||
Addition | 1 | ||
Foreign exchange movement | (1) | ||
Others | (2) | ||
Assets arising from financing activities at end of period | $ (1) | (1) | |
Liabilities arising from financing activities at end of period | $ (1) |
Cash And Cash Equivalents - Con
Cash And Cash Equivalents - Concentration of Cash and Cash Equivalents by Geography (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of geographical areas [line items] | ||||
Cash and cash equivalents | $ 2,352 | $ 2,939 | $ 908 | $ 997 |
United States of America | ||||
Disclosure of geographical areas [line items] | ||||
Cash and cash equivalents | 484 | 1,357 | ||
Republic of Singapore | ||||
Disclosure of geographical areas [line items] | ||||
Cash and cash equivalents | 1,775 | 1,485 | ||
Other | ||||
Disclosure of geographical areas [line items] | ||||
Cash and cash equivalents | $ 93 | $ 97 |
Issued Capital and Reserves (De
Issued Capital and Reserves (Details) - $ / shares | Sep. 12, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Oct. 27, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of classes of share capital [line items] | ||||||
Stock split (in shares) | 0.5 | |||||
Number of shares issued (in shares) | 547,755,000 | 531,846,000 | ||||
Par value per share (in dollars per share) | $ 0.02 | $ 0.02 | ||||
Number of shares outstanding (in shares) | 547,755,000 | 531,846,000 | ||||
Ordinary shares | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of shares issued (in shares) | 548,000,000 | |||||
Number of shares authorised (in shares) | 1,300,000,000 | |||||
Par value per share (in dollars per share) | $ 0.02 | |||||
Number of shares outstanding (in shares) | 548,000,000 | |||||
Preference shares | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of shares authorised (in shares) | 200,000,000 | |||||
Par value per share (in dollars per share) | $ 0.02 | |||||
Common Share | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of shares outstanding (in shares) | 548,000,000 | 532,000,000 | 500,000,000 | 500,000,000 | ||
IPO | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of shares issued (in shares) | 30,250,000 | |||||
Private Placement | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of shares issued (in shares) | 1,595,744 |
Long-Term Debt - Schedule of No
Long-Term Debt - Schedule of Noncurrent and Current Borrowings (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Current: | |||
Current portion of long-term debt | $ 223 | $ 297 | |
Non-current: | |||
Non-current portion of long-term debt | 2,288 | 1,716 | |
Total | $ 2,511 | $ 2,013 | $ 2,338 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) $ in Millions, $ in Millions | 12 Months Ended | ||||||
Oct. 13, 2021 USD ($) | Sep. 03, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 03, 2021 SGD ($) | Feb. 17, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Disclosure of detailed information about borrowings [line items] | |||||||
Loans and borrowings | $ 2,511 | $ 2,013 | $ 2,338 | ||||
Non-current portion of long-term debt | 2,288 | 1,716 | |||||
Accounts Receivable Factoring [Member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Loans and borrowings | $ 0 | 16 | $ 92 | ||||
Nominal Interest Rate | 0.90% | ||||||
2021 SGD EDB Loan | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Nominal Interest Rate | 1.40% | 1.40% | 1.40% | ||||
Maximum borrowing capacity | $ 1,149 | $ 1,541 | |||||
New loans and borrowings | $ 1,082 | 111 | |||||
Non-current portion of long-term debt | 923 | 90 | |||||
Borrowing term (in years) | 5 years | ||||||
Five-year Revolving and Letter of Credit Facilities Agreement | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Maximum borrowing capacity | $ 1,000 | ||||||
Borrowing term (in years) | 5 years | ||||||
Deferred Financing costs Netting | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Loans and borrowings | 12 | $ 18 | |||||
Deferred Income From Government Grants | 2021 SGD EDB Loan | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Loans and borrowings | $ 184 | ||||||
Nominal Interest Rate | 3.20% |
Long-Term Debt - Movements in I
Long-Term Debt - Movements in Interest bearing Borrowings (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Borrowing costs Abstract [Abstract] | ||
Opening balance | $ 2,013 | $ 2,338 |
New loans and borrowings | 971 | 618 |
Repayments | (301) | (882) |
Other | (172) | (61) |
Ending balance | $ 2,511 | $ 2,013 |
Long-Term Debt - Summary of Ter
Long-Term Debt - Summary of Term Loan Facilities (Details) $ in Millions, $ in Millions | Apr. 23, 2020 USD ($) | Jan. 21, 2019 USD ($) | Mar. 02, 2018 USD ($) bank | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 03, 2021 USD ($) | Sep. 03, 2021 SGD ($) | Dec. 31, 2020 USD ($) | Oct. 31, 2019 USD ($) bank |
Disclosure of detailed information about borrowings [line items] | |||||||||
Current portion of non-current borrowings | $ 223 | $ 297 | |||||||
Non-current portion of non-current borrowings | 2,288 | 1,716 | |||||||
Total | 2,511 | 2,013 | $ 2,338 | ||||||
Lease obligations | $ 345 | 426 | |||||||
Number of banks | bank | 4 | 5 | |||||||
Proceeds from sales of property, plant and equipment | $ 300 | $ 425 | $ 375 | ||||||
Equipment | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Lease obligations | $ 375 | ||||||||
2018 Tool Equipment Purchase and Lease Financing | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Nominal Interest Rate | 0.00016% | ||||||||
Current portion of non-current borrowings | $ 19 | 75 | |||||||
2019 Tool Equipment Purchase and Lease Financing | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Nominal Interest Rate | 0.00018% | ||||||||
Current portion of non-current borrowings | $ 85 | 84 | |||||||
Non-current portion of non-current borrowings | $ 21 | 106 | |||||||
2019 USD Dresden Equipment Financing | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Nominal Interest Rate | 0.00018% | ||||||||
Current portion of non-current borrowings | $ 36 | 36 | |||||||
Non-current portion of non-current borrowings | $ 108 | 144 | |||||||
2020 USD Equipment Financing | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Nominal Interest Rate | 0.00019% | ||||||||
Current portion of non-current borrowings | $ 59 | 59 | |||||||
Non-current portion of non-current borrowings | $ 93 | 152 | |||||||
USD Term Loan A | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Nominal Interest Rate | 0.00029% | ||||||||
Non-current portion of non-current borrowings | $ 649 | 647 | |||||||
EUR Term Loan A | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Nominal Interest Rate | 0.00026% | ||||||||
Non-current portion of non-current borrowings | $ 89 | 94 | |||||||
2019 EUR Dresden Equipment Financing | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Nominal Interest Rate | 0.00018% | ||||||||
Current portion of non-current borrowings | $ 13 | 14 | |||||||
Non-current portion of non-current borrowings | $ 387 | 423 | |||||||
Maximum borrowing capacity | $ 750 | ||||||||
2021 SGD EDB Loan | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Nominal Interest Rate | 1.40% | 1.40% | 1.40% | ||||||
Non-current portion of non-current borrowings | $ 923 | 90 | |||||||
Maximum borrowing capacity | $ 1,149 | $ 1,541 | |||||||
Various Financing | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Current portion of non-current borrowings | 11 | 29 | |||||||
Non-current portion of non-current borrowings | $ 18 | $ 60 | |||||||
2019 USD Dresden Equipment Financing Non-Current | |||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||
Nominal Interest Rate | 0.00023% |
Long-Term Debt - Summary of Unu
Long-Term Debt - Summary of Unutilized Credit Facilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of detailed information about borrowings [line items] | ||
Unutilized borrowing facilities | $ 1,118 | $ 2,144 |
2021 SGD EDB Loan | ||
Disclosure of detailed information about borrowings [line items] | ||
Unutilized borrowing facilities | 42 | 1,029 |
Revolving Credit Facility | ||
Disclosure of detailed information about borrowings [line items] | ||
Unutilized borrowing facilities | 1,012 | 1,009 |
Singapore Factoring | ||
Disclosure of detailed information about borrowings [line items] | ||
Unutilized borrowing facilities | 0 | 75 |
Other Borrowings | ||
Disclosure of detailed information about borrowings [line items] | ||
Unutilized borrowing facilities | $ 64 | $ 31 |
Leases - Additional Information
Leases - Additional Information about Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Amortization of right-of-use assets | $ 82 | $ 81 | |
Interest expense on lease liabilities | 23 | 27 | $ 35 |
Short-term and low-value leases expense | 1 | 1 | |
Total net lease cost | $ 106 | $ 109 | |
Weighted average remaining lease term | 7 years 2 months 4 days | 6 years 6 months 3 days | |
Weighted average discount rate | 4.75% | 6.65% |
Leases - Maturity of Lease Paym
Leases - Maturity of Lease Payments (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of maturity analysis of operating lease payments [line items] | ||
Undiscounted operating lease payments to be received | $ 427 | $ 512 |
Present value of operating lease payments to be received | 345 | 426 |
finance charges | (82) | (86) |
Minimum undiscounted operating lease payments due | 345 | 426 |
Minimum present value of operating lease payments due | 345 | 426 |
Current | 75 | 135 |
Non-current | 270 | 291 |
Total lease liabilities | 345 | 426 |
Within 1 year | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Undiscounted operating lease payments to be received | 92 | 157 |
Present value of operating lease payments to be received | 75 | 135 |
2-5 years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Undiscounted operating lease payments to be received | 184 | 232 |
Present value of operating lease payments to be received | 146 | 191 |
After 5 years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Undiscounted operating lease payments to be received | 151 | 123 |
Present value of operating lease payments to be received | $ 124 | $ 100 |
Leases - Cash Flow Information
Leases - Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows used in operating activities: | |||
Payments of short-term and low-value leases | $ (1) | $ (1) | |
Interest paid | (23) | (27) | $ (35) |
Cash flows used in financing activities: | |||
Payment of lease obligations | $ (89) | $ (78) |
Leases - Schedule of Lease Liab
Leases - Schedule of Lease Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Beginning balance | $ 305 | $ 292 |
Additions | 59 | 94 |
Amortization | (82) | (81) |
Ending balance | $ 282 | $ 305 |
Provisions - Movement in Provis
Provisions - Movement in Provision for Asset Retirement Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of changes in other provisions [abstract] | ||
Provisions at beginning of period | $ 349 | $ 353 |
Arising during the period | 2 | 0 |
Accretion cost | (4) | (1) |
Restructuring charges | 91 | 0 |
Utilized | (52) | (3) |
Reversal to P/L | (88) | 0 |
Provisions at end of period | 298 | $ 349 |
Provisions related to the sale of a business | (7) | |
Provisions related to asset retirement obligations | $ (40) |
Provisions - Narrative (Details
Provisions - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Minimum | ||
Disclosure of other provisions [line items] | ||
Discount rate (as a percent) | 1.58% | (1.59%) |
Maximum | ||
Disclosure of other provisions [line items] | ||
Discount rate (as a percent) | 4.04% | 1.95% |
Government Grants - Roll forwar
Government Grants - Roll forward of Government Grants (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Government grants [Abstract] | ||
Beginning balance | $ 176 | $ 169 |
Received/receivable during the period | 270 | 40 |
Released to the consolidated statements of operations | (42) | (33) |
Ending balance | 404 | 176 |
Current | 110 | 29 |
Non-current | 294 | 147 |
Total government grants | $ 404 | $ 176 |
Government Grants - Located in
Government Grants - Located in Consolidated Statements of Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Government Grants [Line Items] | |||
Income from government grants | $ 42 | $ 33 | $ 51 |
Cost of revenue | |||
Government Grants [Line Items] | |||
Income from government grants | 30 | 33 | 49 |
Research and development expenses | |||
Government Grants [Line Items] | |||
Income from government grants | 11 | 0 | 2 |
Selling, general and administrative expenses | |||
Government Grants [Line Items] | |||
Income from government grants | $ 1 | $ 0 | $ 0 |
Trade Payables and Other Liab_3
Trade Payables and Other Liabilities - Schedule of Noncurrent and Current Trade and Other Payables (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current: | ||
Trade payables | $ 532 | $ 551 |
Accrued expenses | 573 | 603 |
Current contract liabilities | 592 | 533 |
Current advances and deposits | 93 | 309 |
Payable for PPE and Intangible Assets | 961 | 472 |
Other | 98 | 118 |
Current payables | 2,849 | 2,586 |
Non-current: | ||
Payable for Intangible Assets | 92 | 45 |
Contract liabilities | 1,326 | 1,368 |
Deferred tax liabilities | 26 | 2 |
Other non-current payables | 30 | 30 |
Non-current trade payables | 1,474 | 1,445 |
Deposits from customers | $ 73 | $ 118 |
Trade Payables and Other Liab_4
Trade Payables and Other Liabilities - Reconciliation of Contract Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | ||
Beginning contract liabilities balance | $ 1,901 | $ 135 |
Cash receipts in advance of satisfaction of performance obligations | 1,189 | 1,894 |
Released to the consolidated statements of operations and comprehensive loss | (951) | (128) |
Amounts credited to customers | (221) | 0 |
Ending contract liabilities balance | 1,918 | 1,901 |
Current | 592 | 533 |
Non-current | 1,326 | 1,368 |
Deferred revenue | $ 522 | $ 48 |
Employee Benefits Plans (Detail
Employee Benefits Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Benefits [Abstract] | |||
Employee contributions matched by employer (as a percent) | 3% | ||
Additional employee contributions matched by employer (as a percent) | 3% | ||
Maximum employee contributions matched by employer (as a percent) | 4.50% | ||
Contribution 401(K) expense | $ 32 | $ 31 | $ 32 |
Contribution expense | $ 31 | $ 29 | $ 22 |
Commitments and Contingencies -
Commitments and Contingencies - Unconditional Purchase Commitments (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Other Provisions, Contingent Liabilities, and Contingent Assets [Abstract] | ||
Contracts for capital expenditures | $ 2,774 | $ 2,995 |
Contracts for operating expenditures | 3,587 | 3,405 |
Contractual capital and operating commitments | 6,361 | 6,400 |
Due within the next 12 months | $ 2,732 | $ 3,543 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Apr. 28, 2021 | Dec. 31, 2020 | |
Disclosure of contingent liabilities [line items] | |||||
Loans and borrowings | $ 2,511 | $ 2,013 | $ 2,338 | ||
Bank guarantees | $ 4 | 3 | |||
Minimum interest on license agreement | 49% | ||||
Provisions | $ 298 | 349 | $ 34 | $ 2,500 | $ 353 |
PILOT Bonds, Letters Of Credit | |||||
Disclosure of contingent liabilities [line items] | |||||
Loans and borrowings | $ 20 | $ 20 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings per share [abstract] | |||
Net income (loss) available to equity shareholders of the Company | $ (1,448) | $ 250 | $ 1,350 |
Basic weighted average common shares outstanding (in shares) | 539,000,000 | 506,000,000 | 500,000,000 |
Weighted average common shares outstanding (in shares) | 552,000,000 | 506,000,000 | 500,000,000 |
Total basic and diluted earnings per share attributable to equity shareholders (in USD per share) | $ 2.69 | $ (0.49) | $ (2.70) |
Total basic and diluted earnings per share attributable to equity shareholders (in USD per share) | $ 2.62 | $ (0.49) | $ (2.70) |
Antidilutive securities (in shares) | 6,000,000 | 22,000,000 | 22,000,000 |
Related Party Disclosures - Bal
Related Party Disclosures - Balances in the Consolidated Statement of Financial Position (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of transactions between related parties [line items] | ||
Due from Related Parties | $ 11 | $ 8 |
Due to Related Parties | 10 | 9 |
SMP | ||
Disclosure of transactions between related parties [line items] | ||
Due from Related Parties | 11 | 8 |
Due to Related Parties | $ 10 | $ 9 |
Related Party Disclosures - Tra
Related Party Disclosures - Transactions with Related Parties (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of transactions between related parties [line items] | |||
Purchases and recharges from: | $ 60 | $ 60 | $ 58 |
Other transactions with: | 52 | 48 | 48 |
SMP | |||
Disclosure of transactions between related parties [line items] | |||
Purchases and recharges from: | 60 | 60 | 58 |
Other transactions with: | 52 | 45 | 47 |
Mubadala Technology (reimbursement of expenses) | |||
Disclosure of transactions between related parties [line items] | |||
Other transactions with: | $ 0 | $ 3 | $ 1 |
Related Party Disclosures - Nar
Related Party Disclosures - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Oct. 03, 2021 | Dec. 31, 2021 | |
Disclosure of transactions between related parties [line items] | ||
Payments to related parties | $ (568) | |
Loan from Shareholder | ||
Disclosure of transactions between related parties [line items] | ||
Conversion of loan from shareholder | $ (10,113) | |
Additional Paid-In Capital | ||
Disclosure of transactions between related parties [line items] | ||
Addition | $ (10,100) |
Related Party Disclosures - Com
Related Party Disclosures - Compensation to Key Management Personnel (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of transactions between related parties [line items] | |||
Amount incurred by entity for provision of key management personnel services provided by separate management entity | $ 29 | $ 53 | $ 12 |
Short-term benefits | |||
Disclosure of transactions between related parties [line items] | |||
Amount incurred by entity for provision of key management personnel services provided by separate management entity | 5 | 8 | 11 |
Share-based payments | |||
Disclosure of transactions between related parties [line items] | |||
Amount incurred by entity for provision of key management personnel services provided by separate management entity | 19 | 42 | 0 |
Board of Directors | |||
Disclosure of transactions between related parties [line items] | |||
Amount incurred by entity for provision of key management personnel services provided by separate management entity | $ 5 | $ 3 | $ 1 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2022 | Jun. 30, 2021 USD ($) | Dec. 31, 2022 USD ($) yr shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) yr $ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Granted (in shares) | shares | 14,956,321 | 995,409 | ||||
Additional-paid in capital | $ 9,960 | $ 8,033 | $ 7,241 | $ 9,020 | ||
Share-based payment expenses | $ 7 | 63 | 251 | |||
Term (in years) | 10 years | |||||
Expense from share-based payment transactions with employees | $ 92 | 152 | 1 | |||
Additional Paid-In Capital | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Additional-paid in capital | $ 23,831 | $ 23,487 | 11,707 | $ 11,706 | ||
Maximum | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Share-based payment arrangement, vesting percentage | 200% | |||||
Share-based payment arrangement, performance period (in years) | 3 years | |||||
Minimum | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Share-based payment arrangement, vesting percentage | 0% | |||||
RSUs | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Vesting period (in years) | 1 year | |||||
Vesting percentage | 33.33% | 25% | ||||
Unrecognized compensation costs | $ 88 | $ 26 | 0 | |||
Share Options | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Lookback period (in years) | 2 years 8 months 26 days | |||||
Exercise price of outstanding share options (in dollars per share) | $ / shares | $ 10 | |||||
Fair value of options | $ 39 | $ 64 | ||||
Weighted average remaining contractual life (in years) | 10 years | |||||
Share-based payment expenses | $ 173 | 223 | $ 1 | |||
Expense from share-based payment transactions with employees | 10 | |||||
Share Options | Additional Paid-In Capital | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Additional-paid in capital | 163 | $ 0 | ||||
Share Options | Maximum | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Vesting period (in years) | 5 years | |||||
Granted (in shares) | yr | 25,000,000 | |||||
Share Options | Minimum | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Vesting period (in years) | 4 years | |||||
Performance Share Units (PSU) | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Unrecognized compensation costs | $ 24 | |||||
Performance Share Units (PSU) | Minimum | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Share-based payment arrangement, performance period (in years) | 2 years | |||||
Share Incentive Plan 2018 | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Share options available for future grant (in shares) | shares | 2,826,758 | 2,457,663,000 | ||||
Equity Compensation Plan 2021 | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Share options available for future grant (in shares) | shares | 13,648,116 | |||||
Employee Share Purchase Plan | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Granted (in shares) | yr | 50 | |||||
Employee subscription rate (as a percent) | 10% | |||||
Maximum employee subscription (in shares) | shares | 2,500 | |||||
Matching contribution (as a percent) | 20% | |||||
Employee Stock Purchase Plan | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Shares issued (in shares) | shares | 533,591 | |||||
Shares available (in shares) | shares | 7,500,000 | |||||
Commencement period (in years) | 8 years | |||||
Annual increase percentage | 0.25% | |||||
Maximum grant limit (in shares) | shares | 18,750,000 |
Share-Based Compensation - RSU
Share-Based Compensation - RSU and PSU Activity (Details) | 12 Months Ended | |
Dec. 31, 2022 shares $ / shares | Dec. 31, 2021 shares $ / shares | |
Restricted Share Units (RSU) | ||
Number of RSUs | ||
Outstanding at beginning of period (in shares) | shares | 847,430 | 0 |
Granted (in shares) | shares | 3,416,545 | 851,530 |
Forfeited (in shares) | shares | (314,158) | (4,100) |
Exercised (in shares) | shares | (738,387) | |
Outstanding at end of period (in shares) | shares | 3,211,430 | 847,430 |
Weighted average grant date fair value | ||
Outstanding at beginning of period (in USD per share) | $ / shares | $ 39.59 | |
Granted (in USD per share) | $ / shares | 57.09 | $ 39.56 |
Forfeited (in USD per share) | $ / shares | 55.36 | 34.46 |
Exercised (in USD per share) | $ / shares | 49.51 | |
Outstanding at end of period (in USD per share) | $ / shares | $ 54.39 | $ 39.59 |
Performance Share Units (PSU) | ||
Number of RSUs | ||
Outstanding at beginning of period (in shares) | shares | 0 | |
Granted (in shares) | shares | 571,277 | |
Forfeited (in shares) | shares | (34,082) | |
Outstanding at end of period (in shares) | shares | 537,195 | 0 |
Weighted average grant date fair value | ||
Outstanding at beginning of period (in USD per share) | $ / shares | $ 0 | |
Granted (in USD per share) | $ / shares | 70.85 | |
Forfeited (in USD per share) | $ / shares | 70.91 | |
Outstanding at end of period (in USD per share) | $ / shares | $ 70.91 | $ 0 |
Share-Based Compensation - Fair
Share-Based Compensation - Fair Value Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2022 $ / shares | Dec. 31, 2021 yr | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Expected volatility | 45% | |
Expected term | yr | 4.5 | |
Risk-free interest rate | 0.56% | |
Bottom of range [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Estimated ordinary shares valuation | $ 24.64 | |
Top of range [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Estimated ordinary shares valuation | $ 26.04 | |
Performance Share Units (PSU) | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Expected dividend yield | 0% | |
Expected volatility | 45.50% | |
Risk-free interest rate | 2.55% |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Option Activity (Details) | 12 Months Ended | |
Dec. 31, 2022 shares $ / shares | Dec. 31, 2021 shares $ / shares | |
Number of Share options | ||
Beginning balance (in shares) | shares | 21,749,558 | 22,286,278 |
Granted (in shares) | shares | 14,956,321 | 995,409 |
Forfeited (in shares) | shares | (532,634) | (1,532,129) |
Ending balance (in shares) | shares | 6,260,603 | 21,749,558 |
Exercisable (in shares) | shares | 4,873,406 | |
Weighted average exercise price per Share | ||
Beginning balance (in dollars per share) | $ / shares | $ 10.03 | $ 10.04 |
Granted (in dollars per share) | $ / shares | 10 | 10 |
Forfeited (in dollars per share) | $ / shares | 10 | 10 |
Ending balance (in dollars per share) | $ / shares | 10.02 | $ 10.03 |
Exercisable (in dollars per share) | $ / shares | $ 10.02 |
Share-Based Compensation - Rang
Share-Based Compensation - Range of Exercise Prices, Options Outstanding, and Contractual Life (Details) | 12 Months Ended | ||
Dec. 31, 2022 shares $ / shares | Dec. 31, 2021 shares | Dec. 31, 2020 shares | |
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number Outstanding | 6,260,603 | 21,749,558 | 22,286,278 |
$10.02 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options (in dollars per share) | $ / shares | $ 10.02 | ||
Number Outstanding | 6,250,068 | ||
Weighted average remaining contractual life (in years) | 2 years 1 month 17 days | ||
$19.07 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options (in dollars per share) | $ / shares | $ 19.07 | ||
Number Outstanding | 4,515 | ||
Weighted average remaining contractual life (in years) | 4 years 14 days | ||
$22.54 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options (in dollars per share) | $ / shares | $ 22.54 | ||
Number Outstanding | 4,515 | ||
Weighted average remaining contractual life (in years) | 4 years 14 days | ||
$26.00 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise price of outstanding share options (in dollars per share) | $ / shares | $ 26 | ||
Number Outstanding | 1,505 | ||
Weighted average remaining contractual life (in years) | 4 years 14 days |
Financial Risk Management Obj_3
Financial Risk Management Objectives and Policies - Sensitivity of Profit or Loss (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Financial Instruments [Abstract] | |||
Sensitivity analysis for types Of market risk, impact of 10 percent increase on earnings | $ 1 | $ 0 | $ 19 |
Sensitivity analysis for types Of market risk, impact of 10 percent decrease on earnings | $ 1 | $ 0 | $ 19 |
Financial Risk Management Obj_4
Financial Risk Management Objectives and Policies - Foreign Currency Risk Exposure (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||
Cash and cash equivalents | $ 2,352 | $ 2,939 | $ 908 | $ 997 |
Loans and borrowings | (2,511) | (2,013) | $ (2,338) | |
Currency risk | EUR | ||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||
Receivables and prepayments | 120 | 161 | ||
Cash and cash equivalents | 48 | 45 | ||
Loans and borrowings | (45) | (14) | ||
Trade and other payables | (388) | (254) | ||
Total financial liabilities | (175) | (62) | ||
Currency risk | JPY | ||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||
Receivables and prepayments | 0 | 0 | ||
Cash and cash equivalents | 4 | 2 | ||
Loans and borrowings | 0 | 0 | ||
Trade and other payables | (73) | (73) | ||
Total financial liabilities | (69) | (71) | ||
Currency risk | SGD | ||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||
Receivables and prepayments | 16 | 13 | ||
Cash and cash equivalents | 420 | 4 | ||
Loans and borrowings | 0 | (91) | ||
Trade and other payables | (149) | (147) | ||
Total financial liabilities | $ 287 | $ (221) |
Financial Risk Management Obj_5
Financial Risk Management Objectives and Policies - Narrative (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Five Largest Customers | Customer Risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Customer concentration risk (as a percent) | 57% | 61% |
Financial Risk Management Obj_6
Financial Risk Management Objectives and Policies - Aging of Financial assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Maturity Analysis For Derivative And Non-Derivative Financial Liabilities [Line Items] | ||
Carrying Amount | $ 2,511 | $ 2,013 |
Credit risk | ||
Disclosure Of Maturity Analysis For Derivative And Non-Derivative Financial Liabilities [Line Items] | ||
Carrying Amount | 2,254 | 1,067 |
Credit risk | Receivables neither past due nor impaired | ||
Disclosure Of Maturity Analysis For Derivative And Non-Derivative Financial Liabilities [Line Items] | ||
Carrying Amount | 2,137 | 1,023 |
Credit risk | Less than 30 days | ||
Disclosure Of Maturity Analysis For Derivative And Non-Derivative Financial Liabilities [Line Items] | ||
Carrying Amount | 84 | 42 |
Credit risk | 31-90 Days | ||
Disclosure Of Maturity Analysis For Derivative And Non-Derivative Financial Liabilities [Line Items] | ||
Carrying Amount | 33 | 1 |
Credit risk | 91-120 Days | ||
Disclosure Of Maturity Analysis For Derivative And Non-Derivative Financial Liabilities [Line Items] | ||
Carrying Amount | 0 | 1 |
Credit risk | Great than 120 days | ||
Disclosure Of Maturity Analysis For Derivative And Non-Derivative Financial Liabilities [Line Items] | ||
Carrying Amount | $ 0 | $ 0 |
Financial Risk Management Obj_7
Financial Risk Management Objectives and Policies - Maturity of Financial Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Carrying Value | |||
Loans and borrowings | $ 2,511 | $ 2,013 | $ 2,338 |
Lease obligations | 345 | 426 | |
Derivative financial liability | (66) | (66) | |
Liquidity risk | |||
Carrying Value | |||
Loans and borrowings | 2,511 | 2,013 | |
Lease obligations | 345 | 426 | |
Derivative financial liability | 66 | 66 | |
Trade payables and other liabilities | 2,265 | 1,895 | |
Total financial liabilities | 5,187 | 4,400 | |
Contractual Cash Flows | |||
Loans and borrowings | 2,706 | 2,205 | |
Lease obligations | 427 | 512 | |
Derivative financial liability | 66 | 66 | |
Trade payables and other liabilities | 2,265 | 1,895 | |
total financial liabilities | 5,464 | 4,678 | |
Liquidity risk | Within 1 year | |||
Contractual Cash Flows | |||
Loans and borrowings | 229 | 349 | |
Lease obligations | 92 | 157 | |
Derivative financial liability | 61 | 49 | |
Trade payables and other liabilities | 2,171 | 1,848 | |
total financial liabilities | 2,553 | 2,403 | |
Liquidity risk | 2-5 years | |||
Contractual Cash Flows | |||
Loans and borrowings | 1,443 | 1,736 | |
Lease obligations | 184 | 232 | |
Derivative financial liability | 5 | 17 | |
Trade payables and other liabilities | 63 | 47 | |
total financial liabilities | 1,695 | 2,032 | |
Liquidity risk | After 5 years | |||
Contractual Cash Flows | |||
Loans and borrowings | 1,034 | 120 | |
Lease obligations | 151 | 123 | |
Derivative financial liability | 0 | 0 | |
Trade payables and other liabilities | 31 | 0 | |
total financial liabilities | $ 1,216 | $ 243 |
Financial Risk Management Obj_8
Financial Risk Management Objectives and Policies - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of fair value measurement of assets [line items] | ||
Assets | $ 17,841 | $ 15,028 |
Liabilities | 7,881 | 6,995 |
Cash equivalents | Recurring fair value measurement | ||
Disclosure of fair value measurement of assets [line items] | ||
Assets | 961 | 2,175 |
Cash equivalents | Recurring fair value measurement | Quoted Prices Identical Assets/ Liabilities (Level 1) | ||
Disclosure of fair value measurement of assets [line items] | ||
Assets | 961 | 2,150 |
Cash equivalents | Recurring fair value measurement | Significant Other Inputs (Level 2) | ||
Disclosure of fair value measurement of assets [line items] | ||
Assets | 0 | 25 |
Cash equivalents | Recurring fair value measurement | Significant Unobservable Inputs (Level 3) | ||
Disclosure of fair value measurement of assets [line items] | ||
Assets | 0 | 0 |
Investments in equity instruments | Recurring fair value measurement | ||
Disclosure of fair value measurement of assets [line items] | ||
Assets | 15 | 17 |
Investments in equity instruments | Recurring fair value measurement | Quoted Prices Identical Assets/ Liabilities (Level 1) | ||
Disclosure of fair value measurement of assets [line items] | ||
Assets | 0 | 1 |
Investments in equity instruments | Recurring fair value measurement | Significant Other Inputs (Level 2) | ||
Disclosure of fair value measurement of assets [line items] | ||
Assets | 0 | 0 |
Investments in equity instruments | Recurring fair value measurement | Significant Unobservable Inputs (Level 3) | ||
Disclosure of fair value measurement of assets [line items] | ||
Assets | 15 | 16 |
Derivatives | Recurring fair value measurement | ||
Disclosure of fair value measurement of assets [line items] | ||
Assets | 177 | 25 |
Liabilities | 66 | 66 |
Derivatives | Recurring fair value measurement | Quoted Prices Identical Assets/ Liabilities (Level 1) | ||
Disclosure of fair value measurement of assets [line items] | ||
Assets | 0 | 0 |
Liabilities | 0 | 0 |
Derivatives | Recurring fair value measurement | Significant Other Inputs (Level 2) | ||
Disclosure of fair value measurement of assets [line items] | ||
Assets | 177 | 25 |
Liabilities | 66 | 66 |
Derivatives | Recurring fair value measurement | Significant Unobservable Inputs (Level 3) | ||
Disclosure of fair value measurement of assets [line items] | ||
Assets | 0 | 0 |
Liabilities | 0 | $ 0 |
Investments in marketable securities | Recurring fair value measurement | Quoted Prices Identical Assets/ Liabilities (Level 1) | ||
Disclosure of fair value measurement of assets [line items] | ||
Assets | 994 | |
Investments in marketable securities | Recurring fair value measurement | Significant Other Inputs (Level 2) | ||
Disclosure of fair value measurement of assets [line items] | ||
Assets | 0 | |
Investments in marketable securities | Recurring fair value measurement | Significant Unobservable Inputs (Level 3) | ||
Disclosure of fair value measurement of assets [line items] | ||
Assets | $ 0 |
Financial Risk Management Obj_9
Financial Risk Management Objectives and Policies - Assets and Liabilities not Measured at a Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of financial assets and liabilities [Line Items] | ||
Carrying Amount | $ 2,511 | $ 2,013 |
Fair Value | 2,414 | 2,006 |
Other long-term debt | ||
Disclosure of financial assets and liabilities [Line Items] | ||
Carrying Amount | 2,511 | 2,013 |
Fair Value | $ 2,414 | $ 2,006 |
Operating Segments Informatio_2
Operating Segments Information - Revenue by Geography (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of geographical areas [line items] | |||
Revenue | $ 8,108 | $ 6,585 | $ 4,851 |
United States of America | |||
Disclosure of geographical areas [line items] | |||
Revenue | 4,898 | 3,975 | 3,368 |
Europe, the Middle East, and Africa | |||
Disclosure of geographical areas [line items] | |||
Revenue | 1,182 | 805 | 451 |
Other | |||
Disclosure of geographical areas [line items] | |||
Revenue | $ 2,028 | $ 1,805 | $ 1,032 |
Operating Segments Informatio_3
Operating Segments Information - Noncurrent Assets by Geography (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of geographical areas [line items] | ||
Certain non-current assets | $ 11,651 | $ 9,381 |
United States of America | ||
Disclosure of geographical areas [line items] | ||
Certain non-current assets | 5,149 | 5,433 |
Germany | ||
Disclosure of geographical areas [line items] | ||
Certain non-current assets | 2,462 | 1,989 |
Republic of Singapore | ||
Disclosure of geographical areas [line items] | ||
Certain non-current assets | 3,508 | 1,547 |
Other | ||
Disclosure of geographical areas [line items] | ||
Certain non-current assets | $ 532 | $ 412 |
Operating Segments Informatio_4
Operating Segments Information - Revenue by Major Customers (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of major customers [line items] | |||
Revenue from contracts with customers | $ 8,108 | $ 6,585 | $ 4,851 |
Customer A | |||
Disclosure of major customers [line items] | |||
Revenue from contracts with customers | $ 746 | $ 811 | $ 1,001 |
Percentage of entity's revenue | 9% | 12% | 21% |
Customer B | |||
Disclosure of major customers [line items] | |||
Revenue from contracts with customers | $ 1,329 | $ 995 | $ 537 |
Percentage of entity's revenue | 16% | 15% | 11% |
Customer And Supplier Concent_2
Customer And Supplier Concentration (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
SOI Wafers | |||
Concentration Risk [Line Items] | |||
Amount due to supplier | $ 56 | $ 63 | |
Customer A | |||
Concentration Risk [Line Items] | |||
Trade receivables | 71 | 179 | |
Customer B | |||
Concentration Risk [Line Items] | |||
Trade receivables | $ 163 | $ 160 | |
Supplier Risk | SOI Wafers | |||
Concentration Risk [Line Items] | |||
Supplier concentration risk (as a percent) | 54% | 46% | 52% |