Video source: YouTube, GLOBALFOUNDRIES
US-based semiconductor manufacturer GlobalFoundries Inc broke ground Tuesday on a new $4 billion fabrication plant in Singapore to help meet the heightened global demand for chips.
In a press release, GlobalFoundries, owned by Abu Dhabi’s state-owned fund Mubadala Investment Company, said its new fab is expected to begin production in early 2023 and will add about 1,000 jobs in Singapore.
The facility is being developed in partnership with the Singapore Economic Development Board and with “co-investments from committed customers,” the company said.
In a statement, GlobalFoundries’ chief executive officer Tom Caulfield said, “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.”
“GF is meeting the challenge of the global semiconductor shortage by accelerating our investments around the world. Working in close collaboration with our customers and the Government of Singapore is a recipe for success that we are pioneering here and looking forward to replicating in the U.S and Europe,” Caulfield said.
The ongoing semiconductor shortage has been compounded by several factors, including a pandemic-related surge in demand for consumer electronics coupled with government-mandated factory shutdowns that crimped chip production and led to output issues across various industries.
The shortage has highlighted the importance of foundries — companies contracted by semiconductor firms to build chips — with many investing billions in new production lines and upgraded equipment to meet the demand.
GlobalFoundries also announced plans to invest an additional $2 billion to expand capacity at its existing factories in Singapore, Germany and the US.
According to TrendForce, GlobalFoundries is the fourth biggest foundry by market share and revenue in the world. It has about 7% market share, behind Taiwan Semiconductor Manufacturing Company (56%), Samsung Corporation (18%) and UMC (7%).
In a statement, Beh Swan Gin, chairman of the Singapore Economic Development Board, said the organization is “committed to partnering” with industry leaders like GlobalFoundries “to address the global demand for semiconductors, especially in growth areas such as artificial intelligence and 5G.”
“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,” he said.
Source: Equities News