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GlobalFoundries plans to set up a new factory in Singapore, with an annual output of 450,000 wafers.

Published :6/23/2021 9:17:37 AM

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Taking into account the continued shortage of chip supply, GlobalFoundries announced this morning that it will build a new chip factory in Singapore, and related work will soon be implemented. It is reported that this unnamed factory will join the company's existing fab cluster in Singapore. If it goes into full production at the end of 2023, its 300 mm wafer production capacity is expected to reach 450,000 pieces.

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AnandTech pointed out that the fab will be the first of a larger three-phase plan. With the support of customers and the Singapore government, the plant will cost US$4 billion to build.

Like other industries that are booming, GlobalFoundries is currently immersed in a very profitable market, and the existing production capacity is difficult to meet customer demand for chips.

Even with multiple fabs in Singapore, Dresden, and the United States, GlobalFoundries is still operating at full capacity. But if it can expand production smoothly, the company will also have a chance to achieve higher sales.

While implementing the broad policy, the new fab will focus on larger process nodes in order to expand production capacity for automotive, 5G mobile and security equipment customers.

For example, the 55nm BiCOMS process for RF product customers, and the 40nm process for embedded memory and RF products. In addition, a small part of the fab's production capacity is also reserved for the 90nm process.

However, considering the advanced nature of the new plant, GlobalFoundries also emphasized that these allocations are not static, and many of these tools can be interchanged on demand.

The company expects that the fab will trial-produce the first commercial wafers in early 2023, only about 18 months from now. When it is fully completed by the end of 2023, the expected annual production capacity of 450,000 wafers (38,000 wafers/month) can be achieved in the 250,000 square feet of clean room space.

Overall, this means that the capacity of the GlobalFoundries Singapore plant can be increased by nearly 50%, bringing the total operating capacity of 300mm wafers there to an annual output of 1.5 million pieces.

As for the US$4 billion funding source, part of it comes directly from prepaid customers. In addition, the Singapore Economic Development Board has also been listed as a partner by the company.

Finally, with the easy profitability of GlobalFoundries, it will be easier than ever to obtain loans from financial institutions and other forms of borrowing.