A new semiconductor fabrication plant worth $4 billion was launched in Singapore on Tuesday by GlobalFoundries, the U.S chipmaker that ranks third in the world in contract chipmaking.
The new facility, which covers 23,000 square meters (248,000 square feet), will have a production capacity of 450,000 300 millimetre wafers a year when it reaches full operation by 2025 to 2026, according to the company’s Singapore general manager Tan Yew Kong. He also said that the plant will create 1,000 jobs and contribute to about 45% of GlobalFoundries’ revenue if the Singapore campus runs at full capacity. He expected the global chip demand to recover by the second half of 2024 after a period of weakness.
GlobalFoundries has two other fabs in Singapore that make 720,000 300mm wafers and 692,000 200mm wafers a year respectively for 200 clients worldwide. The chips are used in various applications such as cars and 5G technology.
The new plant is part of a $6 billion global expansion plan that GlobalFoundries announced in 2021 amid a chip shortage caused by the pandemic that has since turned into a surplus.
GlobalFoundries counts Qualcomm as one of its biggest clients. Qualcomm recently signed a deal with Apple to supply 5G chips until at least 2026, which will benefit GlobalFoundries.
GlobalFoundries is behind Taiwan’s TSMC and South Korea’s Samsung Electronics in terms of foundry revenue, according to market intelligence provider TrendForce.
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