Globalfoundries: Construction of a new factory in the USA - Saxony site also to be expanded

GlobalFoundries (GF), the global leader in feature-rich semiconductor manufacturing, today announced its expansion plans for its most advanced manufacturing facility in upstate New York over the coming years. These plans include immediate investments to address the global chip shortage at its existing Fab 8 facility as well as construction of a new fab on the same campus that will double the site’s capacity.

The announcement was made as the company convened leaders from government and industry to progress the national discussion around solving U.S. semiconductor supply chain challenges. CEO Tom Caulfield was joined by U.S. Senate Majority Leader Chuck Schumer, U.S. Secretary of Commerce Gina M. Raimondo, former Pentagon officials, and executives from leading companies throughout the semiconductor supply chain.

GF will invest $1 billion to immediately add an additional 150,000 wafers per year within its existing Fab to help address the global chip shortage. Following that, GF plans to construct a new fab that will create more than 1,000 new direct high-tech jobs and thousands more indirect jobs including high-paying construction jobs for the region. Following the successful investment model of Fab 8, GF is planning to fund the new facility through private-public partnerships including customers, federal and state investments. This new capacity will serve the growing demand for secure, feature-rich chips needed by high-growth markets including automotive, 5G connectivity and the Internet of Things. The facility will also support national security requirements for a secure supply chain.

These investments to expand GF’s U.S. manufacturing footprint are part of the company’s broader global expansion plans that include the recently announced new Fab in Singapore and $1 billion planned investment to expand in Germany, all to meet the growing demand from customers worldwide.

"Our expansion and job creation in Malta requires a new economic model, based on the bold public-private partnerships being championed in Washington by visionary leaders Senator Schumer and Secretary Raimondo, as well as close collaboration with our customers," said GF CEO Tom Caulfield. "Our industry is expected to grow more in the next decade than it did in the past 50 years and GF is stepping up to do its part as we work together to address the growing demand for technology innovation for the betterment of humanity. We are honored to be joined by government and automotive leaders, national security experts, and our valued customers to continue the critical discussions needed to create a reliable supply of American-made chips to support the U.S. economy and national security."

Sen. Schumer Quote  
"Chips manufactured by GlobalFoundries and others touch every part of our economy and are vital to both the security of our nation and U.S. competitiveness," said CommerceSec. Raimondo. "The impacts of a short-term chip shortage have underscored the need for a long-term strategy to ensure our nation has a more resilient semiconductor supply chain, one that accelerates U.S. technology leadership and prevents future chip supply constraints. Neither government nor the private sector can do this alone. The Biden-Harris Administration is committed to addressing this challenge, strengthening supply chains, and shoring up domestic semiconductor manufacturing. We applaud GlobalFoundries for taking the forward-looking steps of investing and expanding its production capacity at its Fab 8 facility in upstate New York, and for its leadership role in rallying the U.S. semiconductor industry to action."

Statement from Globalfoundries Dresden
"GlobalFoundries is on a growth path. Over the next two years, GF plans to invest a total of USD 6 billion in the expansion of its sites in the US, Singapore and Germany, including USD 1 billion in Dresden. Today (July 19, 2021), GF announced that it will build a new fab in Malta, NY, in close partnership with the US government, the State of New York, and our customers. More details will be announced at a later date (groundbreaking).

GF Dresden has been in discussions with the Free State of Saxony, the German government and the EU Commission for more than a year regarding support for further investments in Dresden. Unfortunately, the corresponding program (IPCEI on Microelectronics and Communication Technologies) is not yet ready.

We remain confident that the political announcements in Berlin and Brussels will also be implemented and that the microelectronics location Saxony will receive tailwind in the global competition."

Statement of the industry association Silicon Saxony e. V.

Europe must become faster!

"GlobalFoundries' decision to build a new fab in the USA creates facts in Europe in the global race for production capacities in times of chip shortage. It is far more than a wake-up call. After all, there have been more than enough of these in recent months. The reactions have been quite positive: Yes, Europe needs more digital sovereignty and security. Yes, the assembly lines in Europe's car factories should no longer stand still. Yes, Europe is not giving up its ambition for state-of-the-art chip technologies smaller than 5 nanometers. This shows: The industrial policy goals are clearly formulated and enjoy consensus. However, it is all the more true that the speed of implementation must accelerate dramatically. Industry in Europe now needs a binding commitment to public co-financing. Only then will it have arguments to secure investment for planned capacity expansions in Europe. Otherwise, chip companies will continue to expand their sites outside Europe, where states also have a strategic interest in a strong semiconductor industry and therefore provide funding," says Frank Bösenberg, managing director of Silicon Saxony e.V..

About Globalfoundries (GF)
GF employs more than 15,000 worldwide with 7,000 people across the U.S., and nearly 3,000 at its headquarters in Malta, New York. GF has invested more than $15 billion in its Fab 8 facility over the last decade to support innovation and increase manufacturing capacity. As an accredited supplier of advanced semiconductors to the U.S. government, GF delivers secure and reliable semiconductor solutions at Fab 8, which is compliant with the U.S. International Traffic in Arms Regulations (ITAR). Moreover, GF offers the highest industry, customer and government criteria for secure manufacturing, worldwide, through its GF Shield program.