On Tuesday, GlobalFoundries (GFS.O), the world’s third-largest contract chipmaker, unveiled a semiconductor fabrication factory in Singapore that cost $4 billion. This opening was part of a massive global expansion of the company’s manufacturing operations.
According to the company’s Singapore general manager, Tan Yew Kong, the new 23,000 square meter (248,000 square foot) facility will be able to manufacture 450,000 300 millimeter wafers per year when it is operating at full capacity, which is scheduled to occur between 2025 and 2026. Additionally, the facility will be responsible for the creation of 1,000 employees.
“If we run (the Singapore campus’) capacity to the fullest, that will probably be (around) 45% of revenue for GlobalFoundries,” he said, adding that the business anticipated the sluggish global market for chips to perk up by the second half of 2024. “If we run (the Singapore campus’) capacity to the fullest,” he added.
In addition, the Singapore activities of the firm comprise two more fabs, each producing 720,000 300mm wafers and 692,000 200mm wafers annually. These operations service 200 customers all over the globe. The chips are used in automobiles as well as in 5G technologies.
Amid a chip scarcity during the pandemic that has now turned into a surplus, GlobalFoundries announced that they will invest $6 billion in expanding their operations throughout the world in 2021.
Qualcomm, one of the most important customers for GlobalFoundries, said on Monday that it had secured an agreement with Apple APPL.OO is to provide 5G chips until at least 2026. This will be to GlobalFoundries’ advantage. Qualcomm is one of GlobalFoundries’ largest clients.
According to market intelligence firm TrendForce, GlobalFoundries is the world’s third-largest foundry by revenue, falling behind Taiwan’s TSMC (2330. TW) and South Korea’s Samsung Electronics (005930. KS). Both of these companies are based in Taiwan.
The whole semiconductor production of Singapore, which now accounts for 11% of the market worldwide, is projected to increase over the next several months due to the opening or expansion of operations by other chipmakers.
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