June 22, 2021: U.S.-headquartered semiconductor manufacturer Global Foundries announced Tuesday that it will build a new fabrication plant in Singapore to meet the unprecedented global demand for chips.
The new facility will be developed in partnership with the Singapore Economic Development Board and with co-investments from committed customers, Global Foundries said. More than $4 billion will be invested into the development, according to the company.
“Our new facility in Singapore will support fast-growing end-markets in the automotive, 5G mobility and secure device segments with long-term customer agreements already in place,” Global Foundries CEO Tom Caulfield said in a statement.
The global shortage of semiconductor microchips is wreaking havoc, delaying car production and disrupting the operations of some of the largest consumer electronics manufacturers. In addition to Singapore’s Transport Minister S. Iswaran, Khaldoon Khalifa Al-Mubarak, Managing Director of Mubadala Investment Company and CEO of the group, also attended a virtual foundation ceremony for the plant. Mubadalah owns Global Foundries, a state-owned company in the United Arab Emirates.
“The semiconductor industry is a key pillar of Singapore’s manufacturing sector, and the chairman of the Singapore Economic Development Board, Beh Swan Jin, said in a statement that Global Foundries’ new investment is attractive as a global node for Singapore’s innovative manufacturing and innovation.”
Semiconductors are key components that power all types of electronics, from smartphones to computers to brake sensors in cars. Their production involves a complex network of firms that make the chips, the companies that make them, as well as the companies that provide the technology, materials and machinery to do so. Global Foundries is a so-called “pure” foundry, with factories in the United States, Germany and Singapore.
Foundries are companies that contract with semiconductor firms to make chips. Global Foundries manufactures semiconductors designed by a choice of AMD, Qualcomm and Broadcom. The global shortage of chips has highlighted the importance of foundries, which are investing billions in new production lines and upgraded equipment to meet growing demand. According to Trendforce, Taiwan Semiconductor Manufacturing Company, or TSMC, is the world’s largest foundry by market share and revenue.
It has about 56% market share, followed by Samsung (18%), UMC (7%) and Global Foundries (7%). Semiconductor designers and manufacturers are trying to make chips smaller and better. Currently, only TSMC and Samsung have the capability to produce state-of-the-art chips.
For his part, Caulfield said that Global Foundries is planning to invest $1.4 billion in its foundries to address the shortage. The company plans to expand capacity at all its manufacturing sites.
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