California Transparency in Supply Chains Act of 2010

Effective January 1, 2012, the California Transparency in Supply Chains Act requires many companies doing business in the state to provide information regarding their activities to ensure their supply chain is free from slavery and human trafficking.

GLOBALFOUNDRIES has instituted supply chain management practices that clearly communicate our expectations to suppliers. We stand committed to the Electronics Industry Code of Conduct (available at www.eicc.info) and its continuous pursuit of excellence in corporate responsibility and extension of responsible practices throughout the supply chain. The EICC Code specifically requires compliance with all applicable regulatory requirements pertaining to ethics, labor and environmental health and safety, in addition to forbidding forced, bonded or indentured labor and child labor. In addition, GLOBALFOUNDRIES own Worldwide Standards of Business Conduct strictly forbid child labor and forced or compulsory labor practices. All employees must adhere to GLOBALFOUNDRIES Worldwide Standards of Business Conduct. Mandatory training was conducted for U.S. employees in 2011. GLOBALFOUNDRIES takes compliance with the standards very seriously. As noted in the standards "depending on the nature, severity, and frequency of an employee's violation of these Standards or related Company policies or procedures, the Company will take appropriate corrective actions up to and including termination of employment."

Our Global Supplier and Subcontractor Management policy, a key component of our overall supplier management process, requires all affected suppliers to conform to the EICC Code. In accepting our specification, suppliers are confirming their compliance with these requirements. The Global Supplier and Subcontractor Management Policy is developed and implemented by a cross-functional team that includes qualified and knowledgeable personnel with the appropriate skills and experience to successfully perform their responsibilities.

Our supply chain consists mainly of manufacturers of highly specialized semiconductor manufacturing equipment and materials needed to manufacture integrated circuits. The vast majority of these suppliers conduct their operations in countries (including the United States, Germany and other EU countries, Japan, Singapore and Taiwan), with strong regulatory systems targeting forced and child labor. The combination of highly specialized suppliers with manufacturing operations occurring mainly in these regions reduces the risk of forced labor or child labor in our supply chain.

We have surveyed our primary suppliers who represent top tier equipment suppliers, turn-key suppliers (third-party wafer sort and bump services), and key material suppliers to determine their awareness of the EICC Code and its requirements, including elements related to human trafficking and slavery risks. This has been accomplished through a variety of means based on supplier self-assessment, including third-party contracted surveys and direct supplier disclosure. Based on our supplier assessment, we believe there is a very low risk of forced or involuntary or child labor in our supply chain. Therefore, at this time we are not conducting direct on-site supplier audits specific to this topic. Compliance with the EICC Code is an element of GLOBALFOUNDRIES' audit questionnaire within our Supplier Audit procedure, and is being added to the Material Qualification procedure. We believe these measures will continue to improve the effectiveness of our supply-chain CSR program.

For additional information please contact: Reed Content, Director, Global EHS & CSR reed.content@globalfoundries.com