By GlobalFoundries, the renowned U.S. semiconductor manufacturing giant, marked a significant milestone by officially unveiling its state-of-the-art semiconductor fabrication plant in Singapore. Valued at an impressive $4 billion, this expansive facility is part of the company’s ambitious global manufacturing expansion strategy.
Spanning a vast area of 23,000 square meters (equivalent to 248,000 square feet), this facility is poised to achieve remarkable production capabilities. At its peak operational capacity, projected to be reached between 2025 and 2026, the plant will be capable of churning out a staggering 450,000 300-millimeter wafers annually. In addition to its technological advancements, this endeavor is expected to generate around 1,000 employment opportunities, enhancing the region’s workforce and contributing to its economic growth.
GlobalFoundries has big aspirations for its Singapore campus, aiming for it to potentially account for an impressive 45% of the company’s overall revenue when operating at full capacity. This demonstrates the strategic importance of this new plant within the GlobalFoundries portfolio. Furthermore, the company anticipates a resurgence in global chip demand, with expectations of significant improvements in the market by the latter half of 2024.
In Singapore, GlobalFoundries currently serves a diverse clientele spanning 200 companies worldwide. Their operations in the region extend beyond this new fabrication plant, including two other fabs that collectively produce 720,000 300-millimeter wafers and 692,000 200-millimeter wafers each year. These chips play a crucial role in various industries, including automotive applications and the ever-expanding realm of 5G technology.
GlobalFoundries’ expansion efforts in 2021, amounting to a substantial $6 billion investment, were a strategic response to the global chip shortage triggered by the COVID-19 pandemic. Interestingly, the chip shortage has since evolved into a surplus, and GlobalFoundries’ proactive approach has positioned the company for growth in an evolving market landscape.
One of GlobalFoundries’ esteemed clients, Qualcomm, recently made headlines by securing a deal with tech giant Apple to supply 5G chips until at least 2026. This development not only underscores the significance of GlobalFoundries’ role in the semiconductor industry but also highlights its potential for growth in tandem with key partnerships.
In terms of market positioning, GlobalFoundries ranks as the world’s third-largest foundry by revenue, trailing behind Taiwan’s TSMC and South Korea’s Samsung Electronics, according to market intelligence provider TrendForce. This is a testament to the company’s formidable presence and influence in the global semiconductor manufacturing landscape.
Singapore, with its burgeoning semiconductor industry, is poised for substantial growth. Accounting for 11% of the global market, the city-state is set to witness an upsurge in semiconductor production as more chipmakers, including GlobalFoundries, expand their operations in the region. This growth not only cements Singapore’s status as a key player in the semiconductor industry but also contributes to the global supply chain’s resilience and diversity.
