GlobalFoundries to open chip factory in Singapore

GlobalFoundries announced on Tuesday it will build a new chip manufacturing plant in Singapore in a move to address the ongoing shortage of semiconductor chips around the world.

The US outfit said its new factory would be developed in partnership with the Singapore Economic Development Board with co-investments from committed customers, the company said.

Over $4bn will be invested into the development.

“Our new facility in Singapore will support fast-growing end-markets in the automotive, 5G mobility and secure device segments with long-term customer agreements already in place,” GlobalFoundries chief executive officer, Tom Caulfield, said in a statement.

“The semiconductor industry is a key pillar of Singapore’s manufacturing sector, and GlobalFoundries’ new fab investment is testament to Singapore’s attractiveness as a global node for advanced manufacturing and innovation,” Beh Swan Gin, chairman of the Singapore Economic Development Board chipped in.

Plans for the new factory come as the lack of enough semiconductor microchips is hamstringing multiple industries, including automotive and technology companies, delaying production of cars and electronic devices.

GlobalFoundries already had factories in the US, Germany and Singapore, serving companies including AMD, Qualcomm and Broadcom.

“The global demand for semiconductor chips is growing at an unprecedented rate, with worldwide semiconductor revenue projected to increase 2.1 times in the next eight years1. To meet that demand, GF has planned capacity expansions at all its manufacturing sites starting with the construction of phase one of its 300mm fab expansion, Singapore,” said the company in a statement.

“When complete, GF will add capacity for 450,000 wafers per year, bringing GF’s Singapore campus up to approximately 1.5 million (300mm) wafers per year.”

The new fab will create 1,000 new high-value jobs such as technicians, engineers and more. With construction already underway, the Fab is planned to ramp in 2023.