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© annalewandowska Business | October 21, 2016

Globalfoundries new fab site put on hold

The government of Chongqing has reportedly halted the developments of a joint venture 12-inch fab with Globalfoundries.
Unnamed sources told DigiTimes that so far, no progress has been made after the deal between the company and the Chongqing government was struck back in June.

As previously reported by Evertiq, the company signed a memorandum of understanding with Chongqing government, in order to drive its next phase of growth in China by establishing a new 300mm fab.

The initial plan of the project included upgrading an existing semiconductor fab to accommodate the manufacturing of 300mm wafers using technologies from its Singapore site. And production was planned for 2017, at least that was the information that was distributed in June.

However, according to the information DigiTimes received by its sources, Globalfoundries is expected hold a 51% ownership of the JV fab – by buying used equipment to upgrade the fab as well as transferring technologies from its Singapore fab – which according to the sources have upset the Chongqing government.

The government is now arguing that the total equipment investment for the fab is too inexpensive to obtain a 51% stake. As a result, no consensus has been reached, and the deal likely to fall, the sources said, reports DigiTimes.
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