GlobalFoundries invests $3B to expand capacity

GlobalFoundries will construct an additional wafer manufacturing facility at its Dresden location and expand its cleanroom shell currently under construction in New York with the spending.

Suzanne Deffree — EDN, June 1, 2010

GlobalFoundries has become the latest semiconductor industry company to announce increased investment on improving demand, today confirming it will spend $3 billion to expand capacity.

The investment primarily focuses on GlobalFoundries’ Dresden, Germany-, and Saratoga County, New York-based fabs.

With the spend, GlobalFoundries will construct an additional wafer manufacturing facility at Fab 1 in Dresden designed to add additional 45-, 40-, and 28-nm capacity, as well as initial 22-nm development. Nearly 110,000-square feet of cleanroom space will be added, allowing the site to scale output up to 80,000 wafers per month over the next two years. The first output from this expansion is expected in 2011 with construction work planned to start immediately.

The investment will also see GlobalFoundries expand the cleanroom shell currently under construction at Fab 8 in New York to provide the option to increase capacity at 28-, 22-, and 20-nm and bring overall site output up to 60,000 wafers per month once fully equipped. Doing so will increase the size of the cleanroom shell by approximately 90,000-square feet, bringing the total available cleanroom space to approximately 300,000-square feet. Work on the shell expansion is expected to begin later this month. The total facility is expected to come online in 2012 with volume production targeted for early 2013.

“With this aggressive capacity build-out plan, we are well positioned to provide new and existing customers with the fastest option to get advanced products to market in the volumes they need to ensure success,” said Chia Song Hwee, COO of GlobalFoundries, in a statement. GlobalFoundries counts STMicroelectronics and Qualcomm among its current customer base.

In addition to the expansion initiatives in Dresden and New York, GlobalFoundries noted it is also continuing with its previously announced expansion at Fab 7 in Singapore to reach an output level of 50,000 wafers per month, an increase of nearly 50% from current levels. During the expansion, Fab 7 will continue to focus on manufacturing technologies ranging from the 65-nm to 40-nm technology nodes.

Today’s news from GlobalFoundries comes after Samsung in May announced plans to significantly increase capex spending to $9.6 billion and Texas Instruments in April said it would double capacity at its 300-mm analog fab. Like the Samsung and TI moves, GlobalFoundries expects to create hundreds of new jobs through its expansions. Hynix also recently raised its spending, as did TSMC, which has fab expansion plans of its own.

Sunnyvale, Calif-based GlobalFoundries was formed in March 2009 through an AMD manufacturing spinoff and venture with Advanced Technology Investment Company (ATIC), the Abu Dhabi government’s investment arm. ATIC has since bought Singapore’s Chartered Semiconductor Manufacturing and in January integrated that foundry with GlobalFoundries, aiming to create one of the world’s largest contract manufacturers of chips as it competes with Taiwan-based foundries TSMC and UMC.

In addition to the capacity expansion projects at Fab 1 and Fab 8, ATIC, has announced initial plans for an “advanced technology cluster” in Abu Dhabi. The goal for the site is to be the Middle Eastern hub of a global technology and manufacturing network to support the long-term deployment of capital for ATIC portfolio companies, in capital-intensive advanced technologies.



~ by vascoteixeira on June 1, 2010.

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