GlobalFoundries Unveils $4 Billion Expansion in Singapore to Meet Rising Chip Demand

GlobalFoundries, a U.S.-based contract chipmaker, has announced the launch of its $4 billion expansion fabrication plant in Singapore, in response to the increasing demand for essential semiconductor chips. The new 23,000-square meter facility is expected to bolster the company's global manufacturing footprint, enabling it to better serve its customers across its manufacturing sites in three continents. The expansion is set to produce an additional 450,000 wafers (300mm) annually, increasing GlobalFoundries Singapore's total capacity to approximately 1.5 million wafers (300mm) each year. "I'm confident that over the next decade, this industry will double again," said Thomas Caulfield, president and CEO of GlobalFoundries. He noted that sectors such as automotive and cloud for artificial intelligence continue to demonstrate strong demand for chips, while consumer-related sectors remain weak. GlobalFoundries, the world's third-largest foundry by revenue, contracts with semiconductor firms to manufacture chips. Its semiconductors, designed by companies like Qualcomm, MediaTek, and NXP Semiconductors, are used in an array of products from smartphones and laptops to automobiles and smart speakers. The expansion is also expected to create about 1,000 "high-value" jobs in Singapore, mostly comprising equipment technicians, process technicians, and engineers. This comes in addition to the company's current workforce of approximately 4,500 employees at the Singapore site. The new facility was established in partnership with Singapore's Economic Development Board, reflecting GlobalFoundries' long-standing relationship with the Singapore government. The government's industrial policies have been instrumental in attracting high-tech manufacturing and innovation to the region, according to Caulfield. The CEO also highlighted the role of AI tools in the new facility, which will be used to improve productivity, such as wafer pattern recognition to auto-classify and spot defects in wafers. Despite the current excess inventories of memory chips due to stockpiling during the pandemic, Caulfield remains optimistic. He believes that global inflation needs to be controlled before interest rates can come down and consumer spending can recover, particularly in China.