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California Transparency in Supply Chains Act of 2010

Beginning on January 1, 2012, the California Transparency in Supply Chains Act required 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 Citizenship Coalition© 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, our own Worldwide Standards of Business Conduct strictly forbid child labor and forced or compulsory labor practices. All employees must adhere to GF Worldwide Standards of Business Conduct. Mandatory training is conducted for all employees. GF takes compliance with these 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."

The expectation to conform to the EICC Code is included in all facets of our supplier management process. Our standard contract templates, Purchase Order Terms and Conditions, Global Supplier and Subcontractor Management Policy and material qualification procedures all require affected suppliers to conform to the EICC Code. These supplier management processes are developed and implemented by qualified and knowledgeable personnel with the appropriate skills and experience to successfully perform their responsibilities. GF Global Supply Management staff has received training regarding the EICC Code, focused specifically on its supply chain elements.

We survey our Tier 1 suppliers who represent top tier equipment, materials, and service providers to determine their risk of non-conformance with the EICC Code, including human trafficking and slavery risks. The results of our supplier assessment support our belief that there is a low risk of EICC non-conformance in our supply chain, and in particular we believe there is a very low risk of forced, involuntary or child labor. Therefore, at this time we are not conducting direct on-site supplier audits specific to this topic. However, compliance with the EICC Code is included in the audit questionnaire element of our Supplier Audit procedure. We believe these measures will continue to ensure an effective supply-chain CSR program.

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

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