The company to invest $1bn to increase Fab 8’s production capacity by an additional 150,000 wafers per year
GlobalFoundries (GF) revealed plans to build a new semiconductor factory (fab) in Malta, New York and invest $1bn for expanding production at its existing Fab 8 in a move to address the global chip shortage.
In April 2021, the company had relocated its headquarters to Malta at the same place where the Fab 8 was built.
The company aims to expand the fab’s production by an additional 150,000 wafers per year. The new fab will be built following the expansion of Fab 8 and will generate more than 1,000 high-tech jobs.
GlobalFoundries had already invested over $15bn in the Fab 8 facility over the last decade.
The semiconductor manufacturer said that it intends to fund the new fab at its Malta campus by forging private-public partnerships.
The company expects the new capacity to cater to the increasing demand for secure, feature-rich chips that are required for 5G connectivity, automotive, and the Internet of Things.
Besides, the new fab will help in addressing national security requirements for a secure supply chain, said the company.
GlobalFoundries CEO Tom Caulfield said: “Our industry is expected to grow more in the next decade than it did in the past 50 years and GF is stepping up to do its part as we work together to address the growing demand for technology innovation for the betterment of humanity.
“We are honoured to be joined by government and automotive leaders, national security experts, and our valued customers to continue the critical discussions needed to create a reliable supply of American-made chips to support the U.S. economy and national security.”
The latest announcement is said to be in line with the company’s strategy to grow its manufacturing footprint in the US.
The company has also been expanding its manufacturing capabilities in other countries. Last month, it had broken ground on a new S$5bn ($3.66bn) fabrication plant at its Singapore campus.
GlobalFoundries also announced a $1bn planned investment to expand in Germany.
Earlier this week, The Wall Street Journal reported that Intel is in talks to acquire the semiconductor manufacturer for nearly $30bn.
The company is currently owned by UAE-based Mubadala Investment.