Cover
Cover | 3 Months Ended |
Mar. 31, 2023 | |
Cover [Abstract] | |
Document Type | 6-K |
Entity Registrant Name | GLOBALFOUNDRIES Inc. |
Document Period End Date | Mar. 31, 2023 |
Current Fiscal Year End Date | --12-31 |
Entity Central Index Key | 0001709048 |
Amendment Flag | false |
INTERIM CONDENSED CONSOLIDATED
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 2,256 | $ 2,352 |
Marketable securities | 653 | 622 |
Receivables, prepayments and other assets | 1,296 | 1,487 |
Inventories | 1,423 | 1,339 |
Total current assets | 5,628 | 5,800 |
Noncurrent assets: | ||
Property, plant and equipment, net | 10,829 | 10,596 |
Goodwill and intangible assets, net | 369 | 363 |
Marketable securities | 323 | 372 |
Other noncurrent financial assets | 139 | 137 |
Deferred tax assets | 271 | 292 |
Receivables, prepayments and other assets | 256 | 281 |
Total noncurrent assets | 12,187 | 12,041 |
Total assets | 17,815 | 17,841 |
Current liabilities: | ||
Trade payables and other current liabilities | 2,400 | 2,849 |
Provisions | 68 | 102 |
Current portion of deferred income from government grants | 151 | 110 |
Current portion of lease obligations | 71 | 75 |
Current portion of long-term debt | 205 | 223 |
Total current liabilities | 2,895 | 3,359 |
Noncurrent liabilities | ||
Noncurrent portion of long-term debt | 2,310 | 2,288 |
Noncurrent portion of deferred income from government grants | 297 | 294 |
Provisions | 197 | 196 |
Noncurrent portion of lease obligations | 312 | 270 |
Other noncurrent liabilities | 1,497 | 1,474 |
Total noncurrent liabilities | 4,613 | 4,522 |
Total liabilities | 7,508 | 7,881 |
Equity: | ||
Share capital | 11 | 11 |
Additional paid-in capital | 23,916 | 23,831 |
Accumulated deficit | (13,767) | (14,021) |
Accumulated other comprehensive income | 100 | 92 |
Equity attributable to the shareholders of GLOBALFOUNDRIES INC. | 10,260 | 9,913 |
Non-controlling interest | 47 | 47 |
Total equity | 10,307 | 9,960 |
Total liabilities and equity | $ 17,815 | $ 17,841 |
INTERIM CONDENSED CONSOLIDATE_2
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Parenthetical) - $ / shares shares in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of financial position [abstract] | ||
Par value per share (in dollars per share) | $ 0.02 | $ 0.02 |
Number of shares issued (in shares) | 551,780 | 547,755 |
Number of shares outstanding (in shares) | 551,780 | 547,755 |
UNAUDITED INTERIM CONDENSED CON
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Profit or loss [abstract] | ||
Net revenue | $ 1,841 | $ 1,940 |
Cost of revenue | 1,326 | 1,471 |
Gross profit | 515 | 469 |
Research and development expenses | 109 | 128 |
Selling, general and administrative expenses | 111 | 116 |
Restructuring expenses | 5 | 0 |
Operating expenses | 225 | 244 |
Profit from operations | 290 | 225 |
Finance income (expenses), net | 1 | (28) |
Share of profit of joint ventures | 1 | 1 |
Other income (expense), net | (15) | 9 |
Profit before income taxes | 277 | 207 |
Income tax expense | (23) | (29) |
Net income for the period | 254 | 178 |
Attributable to: | ||
Shareholders of GLOBALFOUNDRIES INC. | 254 | 179 |
Non-controlling interest | 0 | (1) |
Net income for the period | $ 254 | $ 178 |
Net earnings per share attributable to the equity holders of the Company: | ||
Weighted average shares outstanding, basic (in shares) | 550 | 532 |
Diluted weighted average common shares outstanding (in shares) | 555 | 549 |
Basic loss per share (in USD per share) | $ 0.46 | $ 0.34 |
Diluted loss per share (in USD per share) | $ 0.46 | $ 0.33 |
UNAUDITED INTERIM CONDENSED C_2
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Attributable to: | ||
Shareholders of GLOBALFOUNDRIES INC. | $ 254 | $ 179 |
Non-controlling interest | 0 | (1) |
Net income for the period | 254 | 178 |
Items that may be reclassified subsequently to profit: | ||
Share of foreign exchange fluctuation reserve of joint ventures | 2 | (2) |
Effective portion of changes in the fair value of cash flow hedges | 3 | 79 |
Fair value on investments measured at fair value through other comprehensive income | 3 | 0 |
Income tax effect | 0 | (2) |
Total other comprehensive income for the period | 8 | 75 |
Attributable to: | ||
Shareholders of GLOBALFOUNDRIES INC. | 8 | 75 |
Other comprehensive income | 8 | 75 |
Attributable to: | ||
Shareholders of GLOBALFOUNDRIES INC. | 262 | 254 |
Non-controlling interest | 0 | (1) |
Total comprehensive income for the period | $ 262 | $ 253 |
UNAUDITED INTERIM CONDENSED C_3
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) shares in Thousands, $ in Millions | Total | Total | Common Shares | Additional Paid-In Capital | Accumulated Deficit | Hedging Reserve | Foreign Currency Translation and Investments Reserves | Non Controlling Interest |
Beginning balance | $ 8,033 | $ 7,975 | $ 11 | $ 23,487 | $ (15,469) | $ (57) | $ 3 | $ 58 |
Beginning balance (in shares) at Dec. 31, 2021 | 532,000 | |||||||
Share-based compensation | 53 | 53 | 53 | |||||
Net income | 178 | 179 | 179 | (1) | ||||
Other comprehensive income | 75 | 75 | 77 | (2) | ||||
Ending balance (in shares) at Mar. 31, 2022 | 532,000 | |||||||
Ending balance at Mar. 31, 2022 | 8,339 | 8,282 | $ 11 | 23,540 | (15,290) | 20 | 1 | 57 |
Beginning balance | 8,339 | 8,282 | 11 | 23,540 | (15,290) | 20 | 1 | 57 |
Beginning balance | $ 9,960 | 9,913 | $ 11 | 23,831 | (14,021) | 103 | (11) | 47 |
Beginning balance (in shares) at Dec. 31, 2022 | 547,755 | 548,000 | ||||||
Proceeds from issuance of equity instruments (in shares) | 4,000 | |||||||
Proceeds from issuance of equity instruments | $ 50 | 50 | 50 | |||||
Share-based compensation | 35 | 35 | 35 | |||||
Net income | 254 | 254 | 254 | |||||
Other comprehensive income | $ 8 | 8 | 3 | 5 | ||||
Ending balance (in shares) at Mar. 31, 2023 | 551,780 | 552,000 | ||||||
Ending balance at Mar. 31, 2023 | $ 10,307 | 10,260 | $ 11 | 23,916 | (13,767) | 106 | (6) | 47 |
Beginning balance | $ 10,307 | $ 10,260 | $ 11 | $ 23,916 | $ (13,767) | $ 106 | $ (6) | $ 47 |
UNAUDITED INTERIM CONDENSED C_4
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 254 | $ 178 |
Change in assets and liabilities: | ||
Depreciation | 312 | 356 |
Amortization of intangible assets | 31 | 52 |
Share-based compensation | 35 | 53 |
Interest, income taxes paid and finance income (expense) net | 7 | 10 |
Amortization of deferred income from government grants | (7) | (8) |
Deferred income taxes, net | 22 | 19 |
Gain on disposal of property, plant and equipment and other | (1) | (4) |
Receivables, prepayments, other assets and other noncurrent assets | 29 | 16 |
Inventories | (84) | (64) |
Trade and other payables | (119) | 237 |
Net cash provided by operating activities | 479 | 845 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property, plant and equipment, net | (805) | (612) |
Purchase of intangible assets | (48) | (31) |
Proceeds from the sale of EFK business | 238 | 0 |
Advances and proceeds from sale of property, plant and equipment and intangible assets | 4 | 9 |
Purchases of investment in marketable securities | (187) | 0 |
Proceeds from the sale of investment in marketable securities | 212 | 0 |
Other investing activities | 0 | (5) |
Net cash used in investing activities | (586) | (639) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net proceeds from borrowings | 44 | 214 |
Repayments of debt and finance lease obligations | (74) | (107) |
Proceeds from issuance of equity instruments and other | 37 | 0 |
Other financing activities | 3 | 11 |
Net cash provided by financing activities | 10 | 118 |
Effect of exchange rate changes on cash and cash equivalents | 1 | 1 |
Net increase/(decrease) in cash and cash equivalents | (96) | 325 |
Cash and cash equivalents at the beginning of the period | 2,352 | 2,939 |
Cash and cash equivalents at the end of the period | 2,256 | 3,264 |
Noncash investing and financing activities: | ||
Amounts payable for property, plant and equipment | 526 | 519 |
Property, plant and equipment acquired through lease | 53 | 60 |
Amounts payable for intangible assets | $ 64 | $ 114 |
CORPORATE INFORMATION
CORPORATE INFORMATION | 3 Months Ended |
Mar. 31, 2023 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
CORPORATE INFORMATION | Corporate Information Company Operations 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”, “GlobalFoundries”, “GF”, “we”, or “us”) is one of the world’s leading semiconductor foundries and offers 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, microcontroller, and power management units. |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies, Changes In Accounting Estimates And Errors [Abstract] | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | Basis of Presentation and Summary of Significant Accounting Policies Statement of Compliance — The accompanying interim condensed consolidated financial statements have been prepared by management of the Company in accordance with the rules and regulations of the International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual consolidated financial statements prepared in accordance with IFRS as issued by the IASB and should be read in conjunction with the Company’s annual consolidated financial statements, included in GLOBALFOUNDRIES' Annual Report on Form 20-F for the year ended December 31, 2022. The interim condensed consolidated financial statements were authorized by the Audit, Risk and Compliance Committee of GLOBALFOUNDRIES’ Board of Directors on May 16, 2023, to be issued and subsequent events have been evaluated for their potential effect on the interim condensed consolidated financial statements through May 18, 2022. Significant Accounting Judgments, Estimates and Assumptions — The preparation of financial statements in accordance with International Accounting Standards (“IAS”) 34, Interim Financial Reporting, requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company’s accounting policies. In the opinion of management, all adjustments, consisting solely of normal recurring adjustments necessary for a fair presentation of the financial information for the periods indicated, have been included. The results for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. Significant Accounting Policies — Except as set forth below, the accounting policies (including accounting judgements, estimates and assumptions) adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Company's annual audited consolidated financial statements contained in our Annual Report on Form 20-F for the year ended December 31, 2022. Property, Plant and Equipment — We periodically assess the estimated useful lives of property, plant and equipment. As a result of a review completed in April 2023, the Company concluded the estimated maximum useful life of buildings should be increased from 26 years to 50 years. This change in estimate was applied prospectively, effective beginning in the first quarter of 2023. The Company determined that the change in estimated maximum useful lives of buildings did not have a material impact on the financial statements as of and for the three months ended March 31, 2023. Recent Accounting Pronouncements, Adopted: Amendments to IFRS 9, IAS 39, IFRS 7 and IFRS 16 Interest Rate Benchmark Reform (“IBOR reform”) Refer to the audited consolidated financial statements included in the Company's Annual Report on Form 20-F for the year ended December 31, 2022. |
NET REVENUE
NET REVENUE | 3 Months Ended |
Mar. 31, 2023 | |
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 for the three month periods ended March 31, 2023 and 2022. The Company believes these categories best depict the nature and timing of revenue: (in millions) Three Months Ended March 31, 2023 2022 Type of goods and services: Wafer fabrication $ 1,680 $ 1,825 Engineering and other pre-fabrication services 161 115 $ 1,841 $ 1,940 Timing of revenue recognition: Revenue recognized over time $ 107 $ 127 Revenue recognized at a point in time 1,734 1,813 $ 1,841 $ 1,940 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2023 | |
Income taxes [Abstract] | |
INCOME TAXES | Income taxes For tax reporting purposes, the Company consolidates its entities under GLOBALFOUNDRIES Inc., a Cayman Islands entity. As a Cayman Islands corporation, the Company’s domestic statutory income tax rate is 0.0%. The difference between the Company’s domestic statutory income tax rate and its effective income tax rate reflected in the income tax benefit or income tax expense is primarily due to the effect of the tax rates and permanent differences in the other jurisdictions in which the Company operates. The effective tax rate for the three months ended March 31, 2023 and 2022 was 8.3% and 14.0%, respectively. The decrease for the three months ended March 31, 2023 compared to the prior year was primarily due to an improved mix of income in certain jurisdictions and a benefit related to Singapore tax incentives, partially offset by additional withholding tax expense accrued in the United States. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2023 | |
Earnings per share [abstract] | |
EARNINGS PER SHARE | Earnings Per Share Basic earnings per share ("EPS") is based upon the weighted average number of common shares outstanding during the period. Diluted earnings per share is based upon the weighted average number of common shares outstanding during the period assuming the issuance of common shares for all potentially dilutive common shares outstanding. The following table sets forth the computation of basic and diluted earnings per share: (in millions except per share amounts) Three Months Ended March 31, 2023 2022 Net income attributable to equity shareholders of the Company $ 254 $ 179 Weighted average shares outstanding Basic 550 532 Diluted 555 549 Total basic and diluted EPS attributable to equity shareholders Basic $ 0.46 $ 0.34 Diluted $ 0.46 $ 0.33 |
PROPERTY, PLANT, AND EQUIPMENT
PROPERTY, PLANT, AND EQUIPMENT | 3 Months Ended |
Mar. 31, 2023 | |
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, 2022 $ 122 $ 7,867 $ 22,569 $ 439 $ 3,384 $ 34,381 Additions — 56 2 — 485 543 Transfers from construction in progress — 13 (19) 2 4 — Disposals — — (94) — (3) (97) Effect of exchange rate changes 1 1 6 — — 8 As of March 31, 2023 $ 123 $ 7,937 $ 22,464 $ 441 $ 3,870 $ 34,835 Accumulated Depreciation and Impairment As of December 31, 2022 $ 39 $ 4,544 $ 18,804 $ 391 $ 7 $ 23,785 Additions 1 76 230 5 — 312 Disposals — — (94) — — (94) Effect of exchange rate changes — — 3 — — 3 As of March 31, 2023 $ 40 $ 4,620 $ 18,943 $ 396 $ 7 $ 24,006 Net book value as of December 31, 2022 $ 83 $ 3,323 $ 3,765 $ 48 $ 3,377 $ 10,596 Net book value as of March 31, 2023 $ 83 $ 3,317 $ 3,521 $ 45 $ 3,863 $ 10,829 |
RESTRUCTURING
RESTRUCTURING | 3 Months Ended |
Mar. 31, 2023 | |
Restructuring [Abstract] | |
RESTRUCTURING | Restructuring The Company incurred $5 million of restructuring costs during the three months ended March 31, 2023. These costs are included in restructuring expenses in the Company’s consolidated statements of operations. The changes to the restructuring provisions recorded on the consolidated statements of financial position as of March 31, 2023, are summarized as follows: (in millions) 2023 Beginning balance as of December 31, 2022 $ 86 Provision 5 Amounts paid (39) Ending balance as of March 31, 2023 $ 52 |
RECEIVABLES, REPAYMENTS AND OTH
RECEIVABLES, REPAYMENTS AND OTHER ASSETS | 3 Months Ended |
Mar. 31, 2023 | |
Trade and other current receivables [abstract] | |
RECEIVABLES, REPAYMENTS AND OTHER ASSETS | Receivables, Prepayments and Other Assets (in millions) March 31, December 31, Current: Trade receivables, other than related parties $ 851 $ 824 Other receivables 285 497 Unbilled accounts receivable (1) 33 24 Receivables from government grants 50 52 Receivables from related parties 10 11 Derivative assets 67 79 $ 1,296 $ 1,487 Non-current: Advances to suppliers $ 230 $ 235 Other 26 46 Total $ 256 $ 281 (1) 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 rendering services. The following table summarizes the activity in the Company’s unbilled accounts receivable for the three months ended March 31, 2023 and the twelve months ended December 31, 2022, respectively: (in millions) March 31, December 31, Balance, beginning of period $ 24 $ 43 Revenue recognized during the period 32 87 Amounts invoiced (23) (106) Balance, end of period $ 33 $ 24 |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2023 | |
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) March 31, December 31, Work in progress $ 1,012 $ 1,025 Raw materials and supplies 411 314 Total $ 1,423 $ 1,339 |
LONG TERM DEBT
LONG TERM DEBT | 3 Months Ended |
Mar. 31, 2023 | |
Borrowing costs Abstract [Abstract] | |
LONG TERM DEBT | Long Term Debt The following table outlines the terms and amounts of the Company’s debt: Description Currency Nominal Interest Rate Year of Maturity March 31, December 31, (in millions) 2018 Tool Equipment Purchase and Lease Financing USD LIBOR + 1.60% 2023 $ — $ 19 2019 Tool Equipment Purchase and Lease Financing USD LIBOR + 1.75% 2024 85 85 2019 USD Dresden Equipment Financing USD LIBOR + 1.75% 2024 36 36 2020 USD Equipment Financing USD LIBOR + 1.90% 2025 59 59 2019 EUR Dresden Equipment Financing EUR EURIBOR + 1.75% 2026 14 13 Various EUR, USD Various 2024-2026 11 11 Current total $ 205 $ 223 2019 Tool Equipment Purchase and Lease Financing USD LIBOR + 1.75% 2024 — 21 2019 USD Dresden Equipment Financing USD LIBOR + 2.25% 2026 108 108 2020 USD Equipment Financing USD LIBOR + 1.90% 2025 78 93 USD Term Loan A USD LIBOR + 2.90% 2025 649 649 EUR Term Loan A EUR EURIBOR + 2.60% 2025 90 89 2019 EUR Dresden Equipment Financing EUR EURIBOR + 1.75% 2026 394 387 2021 SGD EDB Loan SGD 1.40% 2041 970 923 Various EUR, USD Various 2024-2027 21 18 Noncurrent total $ 2,310 $ 2,288 Total $ 2,515 $ 2,511 The following table summarizes unutilized credit facilities available to the Company to maintain liquidity necessary to fund operations: (in millions) March 31, December 31, Citibank Revolving Credit Facility $ 1,011 $ 1,012 SGD EDB Loan — 42 Uncommitted Credit Facilities (1) 59 64 Total $ 1,070 $ 1,118 (1) Subject to lender approval before draw-down or being usable. |
RELATED PARTY DISCLOSURE
RELATED PARTY DISCLOSURE | 3 Months Ended |
Mar. 31, 2023 | |
Related party [Abstract] | |
RELATED PARTY DISCLOSURE | Related Party Disclosures The total amounts of $10 million and $11 million due from related parties as of March 31, 2023 and December 31, 2022, respectively, have been included in receivables, prepayments and other assets (see Note 7). The $7 million and $10 million due to related parties as of March 31, 2023 and December 31, 2022, respectively, have been included in trade and other payables. Related party balances disclosed in the interim condensed consolidated statements of financial position related to Silicon Manufacturing Partners Pte Ltd. ("SMP"). SMP is a joint venture with LSI Technology (Singapore) Pte. Ltd. The Company holds a 49% interest in SMP and manages all aspects of its manufacturing operations. The following table presents the related party transactions included in the interim condensed consolidated statements of operations: (in millions) Three Months Ended March 31, 2023 2022 Purchases from: * SMP $ 10 $ 13 Other transactions with: SMP (reimbursement of expenses and contribution of tools) $ 13 $ 10 * Purchases from SMP were primarily comprised of wafer purchases. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2023 | |
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) March 31, December 31, Contracts for capital expenditures $ 2,195 $ 2,774 Contracts for operating expenditures 3,325 3,587 $ 5,520 $ 6,361 Due within the next 12 months $ 1,943 $ 2,732 In addition to the above, the Company obtained letters of credit to primarily guarantee payments for utility suppliers and foreign statutory payroll related charges. The Company has obtained letters of credit of $20 million as of March 31, 2023 and December 31, 2022 and has drawn down bank guarantees of $9 million and $4 million as of March 31, 2023 and December 31, 2022. Contingencies — From time to time, the Company is a party to claims that arise in the normal course of business. These claims include allegations of infringement of intellectual property rights of others as well as other claims of liability. In addition, the Company, on a case by case basis, includes intellectual property indemnification provisions in the terms of sale and technology licenses with third parties. The Company is also subject to various taxes in the different jurisdictions in which it operates. These include property, goods and services, and other non-income taxes. The Company accrues costs associated with these matters when they become probable and reasonably estimable. The Company does not believe it is probable that losses associated with these matters beyond those already recognized will be incurred in amounts that would be material to the interim condensed consolidated statements of financial position or interim condensed consolidated statements of operations and comprehensive income (loss). |
FAIR VALUE MEASUREMENTS OF ASSE
FAIR VALUE MEASUREMENTS OF ASSETS AND LIABILITIES | 3 Months Ended |
Mar. 31, 2023 | |
Fair value measurements of assets and liabilities [Abstract] | |
FAIR VALUE MEASUREMENTS OF ASSETS AND LIABILITIES | Fair Value Measurements The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. 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 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. The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis: (in millions) Quoted Prices Identical Assets/ Liabilities Significant Other Inputs Significant Unobservable Inputs Total (Level 1) (Level 2) (Level 3) December 31, 2022 Assets: Cash equivalents (1) $ 961 $ 961 $ — $ — Equity instruments (2) $ 15 $ — $ — $ 15 Derivatives (3) $ 177 $ — $ 177 $ — Marketable securities $ 994 $ 994 $ — $ — Liabilities: Derivatives (3) $ 66 $ — $ 66 $ — March 31, 2023 Assets: Cash equivalents (1) $ 1,408 $ 1,408 $ — $ — Equity instruments (2) $ 15 $ — $ — $ 15 Derivatives (3) $ 166 $ — $ 166 $ — Marketable securities $ 976 $ 976 $ — $ — Liabilities: Derivatives (3) $ 33 $ — $ 33 $ — (1) Included in cash and cash equivalents on the Company’s interim condensed consolidated statements of financial position. (2) Included in current and non-current receivables, prepayments and other assets on the Company’s interim condensed consolidated statements of financial position. (3) 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 interim condensed consolidated statements of financial position . During the three months ended March 31, 2023 and 2022, there were no transfers between Level 1, Level 2 or Level 3 fair value measurements. Assets Measured and Recorded at Fair Value on a Non- Recurring Basis Certain assets and liabilities, such as equity method investments, intangible assets and property, plant and equipment, and other non-financial assets are recorded at fair value only if an impairment or observable price adjustment is recognized in the current period. Financial Instruments Not Recorded at Fair Value on a Recurring Basis Financial instruments not recorded at fair value on a recurring basis include grants receivable, loans receivable, lease obligations and the Company’s current and noncurrent portion of long-term debt. The carrying amounts and fair values of the Company’s financial instruments not recorded at fair value on a recurring basis are presented in the following table: (in millions) March 31, 2023 December 31, 2022 Financial Liabilities Carrying Amount Fair Value Carrying Amount Fair Value Other long-term debt 2,515 2,312 2,511 2,414 Total $ 2,515 $ 2,312 $ 2,511 $ 2,414 Estimated fair values of long-term debt are based on quoted prices for similar liabilities for which significant inputs are observable and represents a Level 2 valuation. The fair values are estimated based on the type of debt and their maturities. The Company estimates the fair value using market interest rates of debts with similar maturities. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2023 | |
Share-based payment arrangements [Abstract] | |
SHARE-BASED COMPENSATION | Share-Based CompensationWe measure and recognize compensation expense related to share-based transactions, including employee, consultant, and non-employee director share option awards, in our consolidated financial statements based on fair value. The fair value of each award is estimated on the date of grant using the Black-Scholes option pricing model for options, and the Monte Carlo simulation model for the performance share units and a share price at the grant date for the restricted share units. The Black-Scholes model and Monte Carlo model both 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 awards, 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 they 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.The Company offers an Employee Stock Purchase Plan which provides eligible employees with an opportunity to purchase our ordinary shares through payroll deductions of up to 10% of their eligible compensation. A participant may purchase a maximum of 2,500 ordinary shares during the purchase period. Amounts deducted and accumulated by the participant are used to purchase ordinary shares at the end of each six-month period, with the Company matching 20% of each employee's contributions on an after-tax basis. |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies, Changes In Accounting Estimates And Errors [Abstract] | |
Basis of Consolidation | Statement of Compliance — The accompanying interim condensed consolidated financial statements have been prepared by management of the Company in accordance with the rules and regulations of the International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual consolidated financial statements prepared in accordance with IFRS as issued by the IASB and should be read in conjunction with the Company’s annual consolidated financial statements, included in GLOBALFOUNDRIES' Annual Report on Form 20-F for the year ended December 31, 2022. The interim condensed consolidated financial statements were authorized by the Audit, Risk and Compliance Committee of GLOBALFOUNDRIES’ Board of Directors on May 16, 2023, to be issued and subsequent events have been evaluated for their potential effect on the interim condensed consolidated financial statements through May 18, 2022. Significant Accounting Judgments, Estimates and Assumptions — The preparation of financial statements in accordance with International Accounting Standards (“IAS”) 34, Interim Financial Reporting, requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company’s accounting policies. In the opinion of management, all adjustments, consisting solely of normal recurring adjustments necessary for a fair presentation of the financial information for the periods indicated, have been included. The results for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. Significant Accounting Policies — Except as set forth below, the accounting policies (including accounting judgements, estimates and assumptions) adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Company's annual audited consolidated financial statements contained in our Annual Report on Form 20-F for the year ended December 31, 2022. |
Property, Plant, and Equipment | We periodically assess the estimated useful lives of property, plant and equipment. As a result of a review completed in April 2023, the Company concluded the estimated maximum useful life of buildings should be increased from 26 years to 50 years. This change in estimate was applied prospectively, effective beginning in the first quarter of 2023. The Company determined that the change in estimated maximum useful lives of buildings did not have a material impact on the financial statements as of and for the three months ended March 31, 2023. |
Recent Accounting Pronouncements, Adopted | Recent Accounting Pronouncements, Adopted:Amendments to IFRS 9, IAS 39, IFRS 7 and IFRS 16 Interest Rate Benchmark Reform (“IBOR reform”) |
Earnings Per Share | Basic earnings per share ("EPS") is based upon the weighted average number of common shares outstanding during the period. Diluted earnings per share is based upon the weighted average number of common shares outstanding during the period assuming the issuance of common shares for all potentially dilutive common shares outstanding. |
NET REVENUE (Tables)
NET REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 for the three month periods ended March 31, 2023 and 2022. The Company believes these categories best depict the nature and timing of revenue: (in millions) Three Months Ended March 31, 2023 2022 Type of goods and services: Wafer fabrication $ 1,680 $ 1,825 Engineering and other pre-fabrication services 161 115 $ 1,841 $ 1,940 Timing of revenue recognition: Revenue recognized over time $ 107 $ 127 Revenue recognized at a point in time 1,734 1,813 $ 1,841 $ 1,940 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings per share [abstract] | |
Schedule of basic and diluted earnings per share | The following table sets forth the computation of basic and diluted earnings per share: (in millions except per share amounts) Three Months Ended March 31, 2023 2022 Net income attributable to equity shareholders of the Company $ 254 $ 179 Weighted average shares outstanding Basic 550 532 Diluted 555 549 Total basic and diluted EPS attributable to equity shareholders Basic $ 0.46 $ 0.34 Diluted $ 0.46 $ 0.33 |
PROPERTY, PLANT, AND EQUIPMENT
PROPERTY, PLANT, AND EQUIPMENT (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Summary of 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, 2022 $ 122 $ 7,867 $ 22,569 $ 439 $ 3,384 $ 34,381 Additions — 56 2 — 485 543 Transfers from construction in progress — 13 (19) 2 4 — Disposals — — (94) — (3) (97) Effect of exchange rate changes 1 1 6 — — 8 As of March 31, 2023 $ 123 $ 7,937 $ 22,464 $ 441 $ 3,870 $ 34,835 Accumulated Depreciation and Impairment As of December 31, 2022 $ 39 $ 4,544 $ 18,804 $ 391 $ 7 $ 23,785 Additions 1 76 230 5 — 312 Disposals — — (94) — — (94) Effect of exchange rate changes — — 3 — — 3 As of March 31, 2023 $ 40 $ 4,620 $ 18,943 $ 396 $ 7 $ 24,006 Net book value as of December 31, 2022 $ 83 $ 3,323 $ 3,765 $ 48 $ 3,377 $ 10,596 Net book value as of March 31, 2023 $ 83 $ 3,317 $ 3,521 $ 45 $ 3,863 $ 10,829 |
RECEIVABLES, REPAYMENTS AND O_2
RECEIVABLES, REPAYMENTS AND OTHER ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Trade and other current receivables [abstract] | |
Schedule of accounts receivable | (in millions) March 31, December 31, Current: Trade receivables, other than related parties $ 851 $ 824 Other receivables 285 497 Unbilled accounts receivable (1) 33 24 Receivables from government grants 50 52 Receivables from related parties 10 11 Derivative assets 67 79 $ 1,296 $ 1,487 Non-current: Advances to suppliers $ 230 $ 235 Other 26 46 Total $ 256 $ 281 |
Schedule of unbilled accounts receivables | The following table summarizes the activity in the Company’s unbilled accounts receivable for the three months ended March 31, 2023 and the twelve months ended December 31, 2022, respectively: (in millions) March 31, December 31, Balance, beginning of period $ 24 $ 43 Revenue recognized during the period 32 87 Amounts invoiced (23) (106) Balance, end of period $ 33 $ 24 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventories [Abstract] | |
Schedule of inventories | (in millions) March 31, December 31, Work in progress $ 1,012 $ 1,025 Raw materials and supplies 411 314 Total $ 1,423 $ 1,339 |
LONG TERM DEBT (Tables)
LONG TERM DEBT (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Borrowing costs Abstract [Abstract] | |
Disclosure of detailed information about borrowings | The following table outlines the terms and amounts of the Company’s debt: Description Currency Nominal Interest Rate Year of Maturity March 31, December 31, (in millions) 2018 Tool Equipment Purchase and Lease Financing USD LIBOR + 1.60% 2023 $ — $ 19 2019 Tool Equipment Purchase and Lease Financing USD LIBOR + 1.75% 2024 85 85 2019 USD Dresden Equipment Financing USD LIBOR + 1.75% 2024 36 36 2020 USD Equipment Financing USD LIBOR + 1.90% 2025 59 59 2019 EUR Dresden Equipment Financing EUR EURIBOR + 1.75% 2026 14 13 Various EUR, USD Various 2024-2026 11 11 Current total $ 205 $ 223 2019 Tool Equipment Purchase and Lease Financing USD LIBOR + 1.75% 2024 — 21 2019 USD Dresden Equipment Financing USD LIBOR + 2.25% 2026 108 108 2020 USD Equipment Financing USD LIBOR + 1.90% 2025 78 93 USD Term Loan A USD LIBOR + 2.90% 2025 649 649 EUR Term Loan A EUR EURIBOR + 2.60% 2025 90 89 2019 EUR Dresden Equipment Financing EUR EURIBOR + 1.75% 2026 394 387 2021 SGD EDB Loan SGD 1.40% 2041 970 923 Various EUR, USD Various 2024-2027 21 18 Noncurrent total $ 2,310 $ 2,288 Total $ 2,515 $ 2,511 The following table summarizes unutilized credit facilities available to the Company to maintain liquidity necessary to fund operations: (in millions) March 31, December 31, Citibank Revolving Credit Facility $ 1,011 $ 1,012 SGD EDB Loan — 42 Uncommitted Credit Facilities (1) 59 64 Total $ 1,070 $ 1,118 (1) Subject to lender approval before draw-down or being usable. |
RELATED PARTY DISCLOSURE (Table
RELATED PARTY DISCLOSURE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Related party [Abstract] | |
Schedule of related party transactions | The following table presents the related party transactions included in the interim condensed consolidated statements of operations: (in millions) Three Months Ended March 31, 2023 2022 Purchases from: * SMP $ 10 $ 13 Other transactions with: SMP (reimbursement of expenses and contribution of tools) $ 13 $ 10 * Purchases from SMP were primarily comprised of wafer purchases. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Other Provisions, Contingent Liabilities, and Contingent Assets [Abstract] | |
Summary of commitments | Commitments – The Company’s unconditional purchase commitments are as follows: (in millions) March 31, December 31, Contracts for capital expenditures $ 2,195 $ 2,774 Contracts for operating expenditures 3,325 3,587 $ 5,520 $ 6,361 Due within the next 12 months $ 1,943 $ 2,732 |
FAIR VALUE MEASUREMENTS OF AS_2
FAIR VALUE MEASUREMENTS OF ASSETS AND LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair value measurements of assets and liabilities [Abstract] | |
Disclosure of fair value measurement of assets and liabilities | The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis: (in millions) Quoted Prices Identical Assets/ Liabilities Significant Other Inputs Significant Unobservable Inputs Total (Level 1) (Level 2) (Level 3) December 31, 2022 Assets: Cash equivalents (1) $ 961 $ 961 $ — $ — Equity instruments (2) $ 15 $ — $ — $ 15 Derivatives (3) $ 177 $ — $ 177 $ — Marketable securities $ 994 $ 994 $ — $ — Liabilities: Derivatives (3) $ 66 $ — $ 66 $ — March 31, 2023 Assets: Cash equivalents (1) $ 1,408 $ 1,408 $ — $ — Equity instruments (2) $ 15 $ — $ — $ 15 Derivatives (3) $ 166 $ — $ 166 $ — Marketable securities $ 976 $ 976 $ — $ — Liabilities: Derivatives (3) $ 33 $ — $ 33 $ — (1) Included in cash and cash equivalents on the Company’s interim condensed consolidated statements of financial position. (2) Included in current and non-current receivables, prepayments and other assets on the Company’s interim condensed consolidated statements of financial position. (3) 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 interim condensed consolidated statements of financial position |
Disclosure of financial assets | The carrying amounts and fair values of the Company’s financial instruments not recorded at fair value on a recurring basis are presented in the following table: (in millions) March 31, 2023 December 31, 2022 Financial Liabilities Carrying Amount Fair Value Carrying Amount Fair Value Other long-term debt 2,515 2,312 2,511 2,414 Total $ 2,515 $ 2,312 $ 2,511 $ 2,414 |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Building and Leasehold Improvements | 3 Months Ended |
Mar. 31, 2023 | |
Minimum | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life (in years) | 26 years |
Maximum | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life (in years) | 50 years |
NET REVENUE - Disaggregated Rev
NET REVENUE - Disaggregated Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | $ 1,841 | $ 1,940 |
Revenue recognized over time | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 107 | 127 |
Revenue recognized at a point in time | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 1,734 | 1,813 |
Wafer fabrication | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 1,680 | 1,825 |
Engineering and other pre-fabrication services | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | $ 161 | $ 115 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income taxes [Abstract] | ||
Statutory income tax rate | 0% | |
Effective income tax rate | 8.30% | 14% |
EARNINGS PER SHARE - Computatio
EARNINGS PER SHARE - Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings per share [abstract] | ||
Net income attributable to equity shareholders of the Company | $ (254) | $ (179) |
Weighted average shares outstanding, basic (in shares) | 550 | 532 |
Weighted average shares outstanding, diluted (in shares) | 555 | 549 |
Total basic EPS attributable to equity shareholders (in USD per share) | $ 0.46 | $ 0.34 |
Total basic diluted earnings per share attributable to equity shareholders (in USD per share) | $ 0.46 | $ 0.33 |
PROPERTY, PLANT, AND EQUIPMEN_2
PROPERTY, PLANT, AND EQUIPMENT - Summary of Property, Plant And Equipment (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Reconciliation of changes in property, plant and equipment [abstract] | |
Property, plant and equipment at beginning of period | $ 10,596 |
Property, plant and equipment at end of period | 10,829 |
Land and Land Improvements | |
Reconciliation of changes in property, plant and equipment [abstract] | |
Property, plant and equipment at beginning of period | 83 |
Property, plant and equipment at end of period | 83 |
Building and Leasehold Improvements | |
Reconciliation of changes in property, plant and equipment [abstract] | |
Property, plant and equipment at beginning of period | 3,323 |
Property, plant and equipment at end of period | 3,317 |
Equipment | |
Reconciliation of changes in property, plant and equipment [abstract] | |
Property, plant and equipment at beginning of period | 3,765 |
Property, plant and equipment at end of period | 3,521 |
Computer | |
Reconciliation of changes in property, plant and equipment [abstract] | |
Property, plant and equipment at beginning of period | 48 |
Property, plant and equipment at end of period | 45 |
Construction in Progress | |
Reconciliation of changes in property, plant and equipment [abstract] | |
Property, plant and equipment at beginning of period | 3,377 |
Property, plant and equipment at end of period | 3,863 |
Cost | |
Reconciliation of changes in property, plant and equipment [abstract] | |
Property, plant and equipment at beginning of period | 34,381 |
Additions | 543 |
Transfers from construction in progress | 0 |
Disposals | 97 |
Effect of exchange rate changes | (8) |
Property, plant and equipment at end of period | 34,835 |
Cost | Land and Land Improvements | |
Reconciliation of changes in property, plant and equipment [abstract] | |
Property, plant and equipment at beginning of period | 122 |
Additions | 0 |
Transfers from construction in progress | 0 |
Disposals | 0 |
Effect of exchange rate changes | (1) |
Property, plant and equipment at end of period | 123 |
Cost | Building and Leasehold Improvements | |
Reconciliation of changes in property, plant and equipment [abstract] | |
Property, plant and equipment at beginning of period | 7,867 |
Additions | 56 |
Transfers from construction in progress | 13 |
Disposals | 0 |
Effect of exchange rate changes | (1) |
Property, plant and equipment at end of period | 7,937 |
Cost | Equipment | |
Reconciliation of changes in property, plant and equipment [abstract] | |
Property, plant and equipment at beginning of period | 22,569 |
Additions | 2 |
Transfers from construction in progress | (19) |
Disposals | 94 |
Effect of exchange rate changes | (6) |
Property, plant and equipment at end of period | 22,464 |
Cost | Computer | |
Reconciliation of changes in property, plant and equipment [abstract] | |
Property, plant and equipment at beginning of period | 439 |
Additions | 0 |
Transfers from construction in progress | 2 |
Disposals | 0 |
Effect of exchange rate changes | 0 |
Property, plant and equipment at end of period | 441 |
Cost | Construction in Progress | |
Reconciliation of changes in property, plant and equipment [abstract] | |
Property, plant and equipment at beginning of period | 3,384 |
Additions | 485 |
Transfers from construction in progress | 4 |
Disposals | 3 |
Effect of exchange rate changes | 0 |
Property, plant and equipment at end of period | 3,870 |
Accumulated Amortization | |
Reconciliation of changes in property, plant and equipment [abstract] | |
Property, plant and equipment at beginning of period | (23,785) |
Additions | (312) |
Disposals | (94) |
Effect of exchange rate changes | 3 |
Property, plant and equipment at end of period | (24,006) |
Accumulated Amortization | Land and Land Improvements | |
Reconciliation of changes in property, plant and equipment [abstract] | |
Property, plant and equipment at beginning of period | (39) |
Additions | (1) |
Disposals | 0 |
Effect of exchange rate changes | 0 |
Property, plant and equipment at end of period | (40) |
Accumulated Amortization | Building and Leasehold Improvements | |
Reconciliation of changes in property, plant and equipment [abstract] | |
Property, plant and equipment at beginning of period | (4,544) |
Additions | (76) |
Disposals | 0 |
Effect of exchange rate changes | 0 |
Property, plant and equipment at end of period | (4,620) |
Accumulated Amortization | Equipment | |
Reconciliation of changes in property, plant and equipment [abstract] | |
Property, plant and equipment at beginning of period | (18,804) |
Additions | (230) |
Disposals | (94) |
Effect of exchange rate changes | 3 |
Property, plant and equipment at end of period | (18,943) |
Accumulated Amortization | Computer | |
Reconciliation of changes in property, plant and equipment [abstract] | |
Property, plant and equipment at beginning of period | (391) |
Additions | (5) |
Disposals | 0 |
Effect of exchange rate changes | 0 |
Property, plant and equipment at end of period | (396) |
Accumulated Amortization | Construction in Progress | |
Reconciliation of changes in property, plant and equipment [abstract] | |
Property, plant and equipment at beginning of period | (7) |
Additions | 0 |
Disposals | 0 |
Effect of exchange rate changes | 0 |
Property, plant and equipment at end of period | $ (7) |
PROPERTY, PLANT, AND EQUIPMEN_3
PROPERTY, PLANT, AND EQUIPMENT - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Accumulated Amortization | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Additions other than through business combinations, property, plant and equipment | $ 312 |
RESTRUCTURING (Details)
RESTRUCTURING (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Restructuring [Roll Forward] | |
Beginning balance | $ 86 |
Restructuring charges | 5 |
Amounts paid | (39) |
Ending balance | $ 52 |
RECEIVABLES, REPAYMENTS AND O_3
RECEIVABLES, REPAYMENTS AND OTHER ASSETS - Summary of Receivables, Prepayments and Other Assets (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Current: | |||
Trade receivables, other than related parties | $ 851 | $ 824 | |
Other receivables | 285 | 497 | |
Unbilled accounts receivable | 33 | 24 | $ 43 |
Receivables from government grants | 50 | 52 | |
Receivables from related parties | 10 | 11 | |
Derivative assets | 67 | 79 | |
Current prepayments and other current assets | 1,296 | 1,487 | |
Non-current: | |||
Advances to suppliers | 230 | 235 | |
Other | 26 | 46 | |
Total | $ 256 | $ 281 |
RECEIVABLES, REPAYMENTS AND O_4
RECEIVABLES, REPAYMENTS AND OTHER ASSETS - Schedule of Unbilled Accounts Receivable (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Trade and other current receivables [abstract] | ||
Balance, beginning of period | $ 24 | $ 43 |
Revenue recognized during the period | 32 | 87 |
Amounts invoiced | (23) | (106) |
Balance, end of period | $ 33 | $ 24 |
INVENTORIES - Summary of Invent
INVENTORIES - Summary of Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Inventories [Abstract] | ||
Work in progress | $ 1,012 | $ 1,025 |
Raw materials and supplies | 411 | 314 |
Total | $ 1,423 | $ 1,339 |
LONG TERM DEBT - Summary of Ter
LONG TERM DEBT - Summary of Term Loan Facilities (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Disclosure of detailed information about borrowings [line items] | ||
Current portion of long-term debt | $ 205 | $ 223 |
Noncurrent total | 2,310 | 2,288 |
Total | 2,515 | 2,511 |
2018 Tool Equipment Purchase and Lease Financing | ||
Disclosure of detailed information about borrowings [line items] | ||
Current portion of long-term debt | $ 0 | 19 |
2018 Tool Equipment Purchase and Lease Financing | Minimum | ||
Disclosure of detailed information about borrowings [line items] | ||
Nominal Interest Rate | 0.00016% | |
2018 Tool Equipment Purchase and Lease Financing | Maximum | ||
Disclosure of detailed information about borrowings [line items] | ||
Nominal Interest Rate | 0.00018% | |
2019 Tool Equipment Purchase and Lease Financing | ||
Disclosure of detailed information about borrowings [line items] | ||
Current portion of long-term debt | $ 85 | 85 |
Noncurrent total | $ 0 | 21 |
2019 Tool Equipment Purchase and Lease Financing | Minimum | ||
Disclosure of detailed information about borrowings [line items] | ||
Nominal Interest Rate | 0.00018% | |
2019 USD Dresden Equipment Financing | ||
Disclosure of detailed information about borrowings [line items] | ||
Current portion of long-term debt | $ 36 | 36 |
Noncurrent total | $ 108 | 108 |
2019 USD Dresden Equipment Financing | Minimum | ||
Disclosure of detailed information about borrowings [line items] | ||
Nominal Interest Rate | 0.00018% | |
2019 USD Dresden Equipment Financing | Maximum | ||
Disclosure of detailed information about borrowings [line items] | ||
Nominal Interest Rate | 0.00023% | |
2020 USD Equipment Financing | ||
Disclosure of detailed information about borrowings [line items] | ||
Current portion of long-term debt | $ 59 | 59 |
Noncurrent total | $ 78 | 93 |
2020 USD Equipment Financing | Minimum | ||
Disclosure of detailed information about borrowings [line items] | ||
Nominal Interest Rate | 0.00019% | |
2020 USD Equipment Financing | Maximum | ||
Disclosure of detailed information about borrowings [line items] | ||
Nominal Interest Rate | 0.00019% | |
USD Term Loan A | ||
Disclosure of detailed information about borrowings [line items] | ||
Noncurrent total | $ 649 | 649 |
USD Term Loan A | Maximum | ||
Disclosure of detailed information about borrowings [line items] | ||
Nominal Interest Rate | 0.00029% | |
EUR Term Loan A | ||
Disclosure of detailed information about borrowings [line items] | ||
Noncurrent total | $ 90 | 89 |
EUR Term Loan A | Maximum | ||
Disclosure of detailed information about borrowings [line items] | ||
Nominal Interest Rate | 0.00026% | |
2019 EUR Dresden Equipment Financing | ||
Disclosure of detailed information about borrowings [line items] | ||
Current portion of long-term debt | $ 14 | 13 |
Noncurrent total | $ 394 | 387 |
2019 EUR Dresden Equipment Financing | Minimum | ||
Disclosure of detailed information about borrowings [line items] | ||
Nominal Interest Rate | 0.00018% | |
2019 EUR Dresden Equipment Financing | Maximum | ||
Disclosure of detailed information about borrowings [line items] | ||
Nominal Interest Rate | 0.00018% | |
SGD EDB Loan | ||
Disclosure of detailed information about borrowings [line items] | ||
Noncurrent total | $ 970 | 923 |
SGD EDB Loan | Maximum | ||
Disclosure of detailed information about borrowings [line items] | ||
Nominal Interest Rate | 1.40% | |
Various Debt One | ||
Disclosure of detailed information about borrowings [line items] | ||
Current portion of long-term debt | $ 11 | 11 |
Various Loans Two | ||
Disclosure of detailed information about borrowings [line items] | ||
Noncurrent total | $ 21 | $ 18 |
LONG TERM DEBT - Summary of Unu
LONG TERM DEBT - Summary of Unutilized Credit Facilities (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Disclosure of detailed information about borrowings [line items] | ||
Unutilized borrowing facilities | $ 1,070 | $ 1,118 |
Citibank Revolving Credit Facility | ||
Disclosure of detailed information about borrowings [line items] | ||
Unutilized borrowing facilities | 1,011 | 1,012 |
SGD EDB Loan | ||
Disclosure of detailed information about borrowings [line items] | ||
Unutilized borrowing facilities | 0 | 42 |
Uncommitted Credit Facilities | ||
Disclosure of detailed information about borrowings [line items] | ||
Unutilized borrowing facilities | $ 59 | $ 64 |
LONG TERM DEBT - Schedule of No
LONG TERM DEBT - Schedule of Noncurrent and Current Borrowings (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Noncurrent: | ||
Noncurrent portion of long-term debt | $ 2,310 | $ 2,288 |
Current: | ||
Current portion of long-term debt | 205 | 223 |
Total | $ 2,515 | $ 2,511 |
LONG TERM DEBT - Narrative (Det
LONG TERM DEBT - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Disclosure of detailed information about borrowings [line items] | ||
Loans and borrowings | $ 2,515 | $ 2,511 |
Noncurrent portion of long-term debt | 2,310 | 2,288 |
SGD EDB Loan | ||
Disclosure of detailed information about borrowings [line items] | ||
Noncurrent portion of long-term debt | $ 970 | $ 923 |
LONG TERM DEBT - Movements in I
LONG TERM DEBT - Movements in Interest bearing Borrowings (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Borrowing costs Abstract [Abstract] | |
Opening balance | $ 2,511 |
Ending balance | $ 2,515 |
RELATED PARTY DISCLOSURE - Narr
RELATED PARTY DISCLOSURE - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Disclosure of transactions between related parties [line items] | ||
Due from related parties | $ 10 | $ 11 |
Due to related parties | $ 7 | $ 10 |
Silicon Manufacturing Partners Pte Ltd. (“SMP”) | ||
Disclosure of transactions between related parties [line items] | ||
Voting rights (as a percent) | 49% |
RELATED PARTY DISCLOSURE - Tran
RELATED PARTY DISCLOSURE - Transactions with Related Parties (Details) - SMP - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disclosure of transactions between related parties [line items] | ||
Purchases from | $ 10 | $ 13 |
Other transactions with | $ 13 | $ 10 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Unconditional Purchase Commitments (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Other Provisions, Contingent Liabilities, and Contingent Assets [Abstract] | ||
Contracts for capital expenditures | $ 2,195 | $ 2,774 |
Contracts for operating expenditures | 3,325 | 3,587 |
Contractual capital and operating commitments | 5,520 | 6,361 |
Due within the next 12 months | $ 1,943 | $ 2,732 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | Apr. 28, 2021 |
Disclosure of contingent liabilities [line items] | |||
Loans and borrowings | $ 2,515 | $ 2,511 | |
Provisions | $ 2,500 | ||
PILOT Bonds, Letters Of Credit | |||
Disclosure of contingent liabilities [line items] | |||
Loans and borrowings | 20 | 20 | |
Bank guarantees | $ 9 | $ 4 |
FAIR VALUE MEASUREMENTS OF AS_3
FAIR VALUE MEASUREMENTS OF ASSETS AND LIABILITIES - Measured on a Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Total financial assets | $ 17,815 | $ 17,841 |
Total financial liabilities | 7,508 | 7,881 |
Derivatives | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Total financial liabilities | 33 | 66 |
Cash equivalents | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Total financial assets | 1,408 | 961 |
Investment in equity instruments | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Total financial assets | 15 | 15 |
Derivatives | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Total financial assets | 166 | 177 |
Marketable securities | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Total financial assets | 976 | 994 |
Level 1 | Derivatives | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Total financial liabilities | 0 | 0 |
Level 1 | Cash equivalents | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Total financial assets | 1,408 | 961 |
Level 1 | Investment in equity instruments | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Total financial assets | 0 | 0 |
Level 1 | Derivatives | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Total financial assets | 0 | 0 |
Level 1 | Marketable securities | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Total financial assets | 976 | 994 |
Level 2 | Derivatives | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Total financial liabilities | 33 | 66 |
Level 2 | Cash equivalents | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Total financial assets | 0 | 0 |
Level 2 | Investment in equity instruments | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Total financial assets | 0 | 0 |
Level 2 | Derivatives | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Total financial assets | 166 | 177 |
Level 2 | Marketable securities | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Total financial assets | 0 | 0 |
Level 3 | Derivatives | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Total financial liabilities | 0 | 0 |
Level 3 | Cash equivalents | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Total financial assets | 0 | 0 |
Level 3 | Investment in equity instruments | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Total financial assets | 15 | 15 |
Level 3 | Derivatives | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Total financial assets | 0 | 0 |
Level 3 | Marketable securities | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Total financial assets | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS OF AS_4
FAIR VALUE MEASUREMENTS OF ASSETS AND LIABILITIES - Not Measured on a Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Carrying Amount | $ 2,515 | $ 2,511 |
Fair Value | 2,312 | 2,414 |
Other long-term debt | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Carrying Amount | 2,515 | 2,511 |
Fair Value | $ 2,312 | $ 2,414 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - Employee Share Purchase Plan | 3 Months Ended |
Mar. 31, 2023 shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Employee subscription rate (as a percent) | 10% |
Maximum subscription (in shares) | 2,500 |
Employer match (as a percent) | 20% |