Globalfoundries plans to boost production: Page 2 of 2

February 03, 2021 //By Christoph Hammerschmidt
Globalfoundries plans to boost production
Against the background of the ongoing chip supply shortage (not only) in the automotive industry, Globalfoundries plans to more than double its production. But this will not be a quick fix for the car industry.

Now contract manufacturer Globalfoundries wants to seize the moment and increase the output of its fab in Dresden to one million wafer starts per year - about two and a half times the current capacity. The German-language industry blog Oiger.de published an interview with Manfred Horstmann, the head of Globalfoundries' Dresden branch. In it, Horstmann confirmed these plans. The increased demand from the automotive industry will in some cases - by no means all - lead to concrete orders, Horstmann said. GlobalFoundries produces semiconductors for GPS and radar systems for use in cars, for example.

However, the car industry will have to be patient for a while yet, because GlobalFoudries already dropped out of the race for ever smaller chip structures years ago and has instead perfected its 22FDX production technology with structure widths of 22 nm under the slogan "More than Moore". Horstmann is not planning to re-enter this race either; instead, he intends to include new applications such as artificial intelligence and, in particular, neuromorphic circuits in his product range - circuits that will probably be in greater demand in the automotive industry in the future, but which will not solve the current supply dilemma.

Horstmann's strategy is to use the increased demand to boost the capacity of his plant. To do this, he wants to build a new production building and further increase the level of automation - which is already very high at the Dresden plant. The company did not want to comment on the investment sum, but media reports mention "significantly more than 1 billion euros". In this context, GlobalFoundries hopes to receive funding from the EU's IPCEI project. This pursues a rather long-term goal, namely to reduce Europe's dependence on the Asian chip industry.

So it will probably take a few more years before production picks up speed at Globalfoundries. And the car industry will have to continue to exercise patience for a while.

More information: https://ihsmarkit.com/Info/0221/semiconductor-shortage.html

www.oiger.de

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