GlobalFoundries: Project Profile(s)

GlobalFoundries is a prominent semiconductor manufacturing company that has played a significant role in the global semiconductor industry.? GlobalFoundries was officially founded in March 2009 as a spin-off from Advanced Micro Devices (AMD), one of the world's leading semiconductor companies. AMD divested its manufacturing operations to create GlobalFoundries, positioning it as an independent semiconductor foundry. GlobalFoundries inherited AMD's manufacturing facilities in Dresden, Germany, and a portion of its facilities in New York, USA. Globalfoundries is currently positioned at the third biggest semiconductor foundry in the world and is making key investments in projects all over the globe.

Globalfoundries has been in continuous growth since its inception, making smart decisions on how it will position itself, partner with others, optimize and expand its existing facilities and build new facilities.? It has a rich history in ongoing construction with investment in the Malta facility alone topping $15Billion in continuous expansion and ongoing construction. ? In 2023 Globalfoundries made some significant decisions on its growth path.

Firstly in February, GlobalFoundries actually reduced its global capacity by passing ownership of its 300mm East Fishkill site to Onsemi. This strategic move completed a three year-long transition plan, which started in 2019, allowing Onsemi to increase its 300mm production at the East Fishkill fab incrementally, but, as importantly, allowing GlobalFoundries to transition its numerous technologies to the company’s three other 300mm sites.? This bold move ensured that spare capacity at all receiving sites was maximized and allowed GlobalFoundries to maximise the efficiencies in all sites.

Completed and Upcoming Projects

GlobalFoundries is already strategically positioned across the globe and. as a global organisation, it can be seen as a 'balanced' supplier by its customers via having front end manufacturing locations in the USA. EMEA and APAC regions. These global locations enable the expansion of existing facilities as a key stream in its growth plans.

USA Expansion: Malta, New York.

In April 203,? GlobalFoundries announced the acquisition of an additional 800 acres of land adjacent to its existing facility in Malta, New York. The purchase of the land gives GlobalFoundries a footprint of approximately 1,100 acres allowing for the continuous expansion of its existing facility. ? While no construction plans have been published yet, GlobalFoundries have outlined that this is a proactive positioning purchase to allow expansion in line with its customers needs.??

APAC Expansion: Singapore

In September, GlobalFoundries Singapore announced the completion of a $4Billion,? 23,000 sqm clean room with capacity for 450,000 300mm wafers annually. ? The initial project broke ground in 2021 and had a first tool set in June 2022 had been expanding capacity over the last 12 months. This raised? GlobalFoundries Singapore’s overall capacity to approximately 1.5 million wafers each year.

EMEA Planned Expansions: France and Germany

In June 2023, GlobalFoundries announced the conclusion of an agreement with STMicroelectronics to develop a state of the art 300mm facility in Crolles, France.? The project will have a capex budget of approximately $7B. In September,? Bloomberg reported that GlobalFoundries was reported to be investing $8Billion in expanding its existing site in Dresden Germany. ? Currently producing 850,000 300mm wafers per year, any expansion at this site will have a significant impact on the overall chip production capacity of Europe. This has not been substantiated by a GF press release but has been widely promoted in the German Press.?Both EMEA projects will be contingent on funding via the EU Chips act and State aid but funding sources have been confirmed and it is widely anticipated that these projects will start in the near future.

Overall GlobalFoundries 2023 Expansion Summary

The transition of the East Fishkill site, the ribbon cutting of the Singapore plant and the ongoing expansion of the Malta facility have significantly increased GF’s capacity but the AEC industry waits in anticipation of the start dates of the facilities in Malta, Dresden and France.?

At an investment level of $15Billion(+) over a three year period (in line with the Singapore timeline) it is believed that these projects will generate a need of up to 15,000 AEC roles across the three facilities. ?

It will be early to mid 2024 before we start to see movement on these projects but the confidence is high that these starts are coming. There will be strong competition for AEC resources in each of the planned GF regions as there have been multiple announcements of similar semiconductor projects, both within the Silicon Saxony region of Germany and the Micron Mega site in upstate New York.? To stay ahead of the competition, GF will need to develop its AEC supply chain to lock in the expertise needed for the upcoming construction of these sites.

Sources: GlobalFoundries, STMicroelectronics and Onsemi press releases. Bloomberg online news.