GlobalFoundries To Build $4 Billion Chipmaking Plant In Singapore To Address Semiconductor Shortage

GlobalFoundries—controlled by United Arab Emirates sovereign wealth fund Mubadala Investment Co.—said Tuesday it will invest $4 billion to build a chip manufacturing plant in Singapore to meet the unprecedented demand for semiconductors worldwide.

The U.S.-headquartered company held a virtual ground breaking ceremony to start the construction of the 300-millimeter fabrication plant in Singapore. When completed in 2023, the facility can produce 450,000 wafers annually, boosting GlobalFoundries’ output in the city-state to 1.5 million wafers per year.

The Singapore expansion—supported by the Singapore government and some of GlobalFoundries’ customers—is part of the group’s global strategy to boost its output to meet the rapidly growing demand for semiconductors. The company said it also plans to expand capacity at manufacturing sites in the U.S. and Germany.

A global shortage of microchips—brought about by surging demand from a broad range of industries and supply chain disruptions caused by Covid-19 lockdowns—has had an impact on the production of a wide range of products such as cars, computers, medical devices and smartphones over the last few quarters. The world’s biggest chipmakers including Taiwan Semiconductor Manufacturing Corp. (TSMC) and Samsung Electronics are also expanding capacity to address the shortfall.

“GlobalFoundries is meeting the challenge of the global semiconductor shortage by accelerating our investments around the world,” says GlobalFoundries CEO Tom Caulfield.

The new fab will be the most advanced chip manufacturing facility in Singapore and support robust demand from the automotive sector as well as 5G device manufacturers, according to GlobalFoundries. It will add 250,000 square feet (23,000 square meters) of cleanroom space and create 1,000 new high-value jobs for technicians and engineers.