This amount will be distributed among factories in the USA, Singapore and Germany.
This year, GlobalFoundries, a semiconductor contract manufacturer, is investing $ 1.4 billion to expand production. This was announced by a source citing a statement by the company’s executive director.
GlobalFoundries Allocates $ 1.4 Billion to Expand Production
According to him, this amount will be evenly distributed between factories in the USA, Singapore and Germany. GlobalFoundries’ expansion is driven by the current shortage of microcircuits, which has arisen as a result of rapid growth in demand.
Investments will increase the volume of production at the rates from 12 to 90 nm. It is predicted that this year the volume of production will be increased by 13%, and in 2022 – by another 20%. About a third of the investment will come from customers looking to secure a stable source of supply.
If demand continues to grow, GlobalFoundries could build a new plant next to its existing plant in New York State. The agreement on the purchase of the respective land plot was concluded last year .
The American company, owned by Mubadala, the United Arab Emirates’ sovereign investment fund, may also postpone its initial public offering at the end of this year or the first half of next year. It was previously planned to be held in late 2022 or early 2023.
GlobalFoundries is one of the three largest manufacturers of semiconductor products, and if we consider exclusively contract manufacturing, then it is second only to TSMC.