Globalfoundries said it plans to spend $1 billion in immediate investment in Fab 8 to add an additional 150,000 wafers per year manufacturing capacity to help address the global chip manufacturing shortage.
The maximum capacity at Fab 8 when fully utilized is reportedly 720,000 wafers per year. The second fab on the campus will eventually double the site’s capacity Globalfoundries said.
The announcement was made by Globalfoundries’ CEO Tom Caulfield in the presence of US senator Chuck Schumer and US Secretary of Commerce Gina Raimondo.
Globalfoundries said it will fund the wafer fab using money from customers, the state and federal government but did not give a cost estimate or time scale to complete the project. The manufacturing will serve demand from high-growth markets such as automotive, 5G connectivity and the Internet of Things as well as national security requirements for a secure supply chain, the company said.
“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 Caulfield, in a statement.
“I’ve led the fight to establish historic federal incentives for semiconductor manufacturing and R&D to strengthen the domestic semiconductor supply chain that is critical to our national security and global competitiveness, including addressing the chip shortage impacting industries across the economy, all in hopes of bringing us to announcements like this today,” said Sen. Schumer. “As Majority Leader, I worked hard with companies like GlobalFoundries to craft and pass the bipartisan U.S. Competition and Innovation Act, providing $52 billion to expand the domestic semiconductor industry and supercharge the GlobalFoundries expansion of Fab 8 and building a new fab in Malta. Today’s announcement is a win-win-win: a win for jobs in the Capital Region, a win for GlobalFoundries, and a win for U.S. government, automakers, and other critical industries that desperately need chips.”
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.
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