GlobalFoundries to invest $1.4 billion to increase its output

The shortage of semiconductors, along side an increase in demand, has created an uncertain market situation. At the same time as opportunities to grow has presented itself to companies such as GlobalFoundries. The company’s CEO, Thomas Caulfield told Reuters that the USD 1.4 billion investment will be split evenly between the company’s manufacturing locations in Dresden, Germany, Malta in New York as well as its facility in Singapore. The investment will allow the company to expand output through 2022 to produce chops from 12 to 90nm. The CEO continues to explain that about a this of the investment will come from client looking to lock in supply over several years. Caulfield expects a 20% increase in production during 2022 following an expected 13% increase this year. The company is also considering further expansion in the US. If demand continues to rise, the company could build a new facility adjacent to its Malta plant – this after the company secured about 66 acres of land last year. However, the potential expansion hinges on the US congress funding several measures to incentivise domestic semiconductor manufacturing – known as the Chips Act, which was approved last year. According to Caulfield it's not a question of “if” the company will expand, but rather “when”. And here a key element is the funding of the Chips Act, the report continues.