GlobalFoundries Opens $4 Billion Semiconductor Plant in Singapore

The new plant will be located in GlobalFoundries' existing Woodlands campus in Singapore. It will have a capacity of 450,000 wafers per year, making it one of the largest semiconductor plants in Singapore. The plant will produce chips for a variety of applications, including automotive, 5G, and Internet of Things (IoT).

Introduction

On September 12, 2023, GlobalFoundries, the world’s third-largest contract chipmaker, opened a cutting-edge semiconductor fabrication plant in Singapore. This $4 billion investment marks a crucial step in GlobalFoundries’ efforts to meet the growing global demand for semiconductors. The plant’s launch is expected to bring about numerous opportunities and make a substantial impact on the global semiconductor market.

The New Facility

GlobalFoundries’ new semiconductor plant in Singapore spans 23,000 square meters and will operate at full capacity by 2025-26. It can produce 450,000 300-mm wafers annually.

This expansion isn’t just about manufacturing—it’s also about creating jobs. The plant is expected to generate 1,000 employment opportunities, boosting the local economy and fortifying Singapore’s status as a semiconductor production hub.

Tan Yew Kong, GlobalFoundries’ Singapore general manager, emphasizes the plant’s importance by highlighting that it could contribute up to 45% of the company’s revenue when operating at full capacity. This underscores its significance in the company’s global operations.

Read more: The Singapore Miracle: How a Small City Became the Semiconductor Giant

Market Trends and Expectations

The semiconductor industry has experienced fluctuating demand in recent years, with periods of both shortage and surplus. GlobalFoundries’ expansion aligns with its anticipation of a surge in chip demand by the second half of 2024. This expectation is grounded in the increasing reliance on semiconductors, especially in sectors like automotive and 5G technology. As the demand for chips continues to rise, GlobalFoundries is actively positioning itself as a crucial player in fulfilling this escalating demand.

Key Clients and Industry Position

GlobalFoundries boasts a roster of 200 clients worldwide, and among them, Qualcomm stands out as one of its prominent partners. Now, Qualcomm has recently inked a substantial deal with Apple to supply 5G chips until at least 2026. This Qualcomm-Apple strategic partnership is expected to significantly benefit GlobalFoundries. It underscores the company’s pivotal role in the semiconductor supply chain.

In terms of market position, GlobalFoundries ranks as the world’s third-largest foundry by revenue, trailing behind Taiwan’s TSMC and South Korea’s Samsung Electronics. This accolade underscores the company’s prominence in the global semiconductor landscape.

Singapore’s Growing Semiconductor Industry

Singapore has maintained its recognition as a pivotal player in the global semiconductor industry. The inauguration of the new GlobalFoundries facility will actively drive the nation’s semiconductor output, currently commanding an 11% share of the global market, towards further growth. This expansion perfectly aligns with Singapore’s vision of evolving into a semiconductor manufacturing hub in the forthcoming years. The incorporation of the $4 billion facility actively reinforces Singapore’s position as a significant force in the semiconductor industry.

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Conclusion

GlobalFoundries’ inauguration of a $4 billion semiconductor fabrication plant in Singapore marks a significant milestone for the company and the semiconductor industry as a whole. This investment bolsters not only manufacturing capabilities but also creates substantial employment opportunities for Singapore.

Kumar Priyadarshi
Kumar Priyadarshi

Kumar Joined IISER Pune after qualifying IIT-JEE in 2012. In his 5th year, he travelled to Singapore for his master’s thesis which yielded a Research Paper in ACS Nano. Kumar Joined Global Foundries as a process Engineer in Singapore working at 40 nm Process node. Working as a scientist at IIT Bombay as Senior Scientist, Kumar Led the team which built India’s 1st Memory Chip with Semiconductor Lab (SCL).

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