Globalfoundries invests 1.1 billion euros in Dresden
The chip contract manufacturer GF wants to expand its Dresden plant even before the state subsidies are finalized.
(Image: c't)
An expansion of Globalfoundries' (GF) Dresden semiconductor plant has been discussed for four years. Now it is materializing: the chip contract manufacturer wants to expand the existing plant for 1.1 billion euros.
Handelsblatt first learned of the expansion from industry sources. Globalfoundries then confirmed the plans. The manufacturer is apparently assuming a government subsidy of several hundred million euros, but this has not yet been finalized. Nevertheless, the expansion is already set to begin – Globalfoundries has received what is known as a subsidy-free permit. This means that the start of construction has no effect on possible subsidies.
Special processes
Globalfoundries produces chips with specialized technology, for example for analogue circuits, including wafers with 22-nanometer structures and so-called Fully Depleted Silicon-on-Insulator (FD-SOI). The manufacturer calls this process 22FDX. Customers include the three automotive suppliers Bosch, Infineon and NXP, who also want to produce their own chips together with TSMC as the joint venture ESMC in Dresden. The 22FDX areas of application include systems-on-chip (SoC) for controlling mmWave radio. The 22FDX successor 12FDX has been delayed for years.
Talks between Globalfoundries and the German government regarding possible funding became public at the beginning of 2021. In autumn 2023, Chief Legal Officer Saam Azar criticized the concentrated funding measures for individual companies.
“TSMC is more than ten times our size and now wants to produce semiconductors in our neighborhood that compete directly with our products, together with three of our largest customers, and dig deep into the subsidy pot to do so,” he complained at the time.
ESMC is currently building its first semiconductor plant in Dresden for 10.5 billion euros. 5 billion is being subsidized by the federal government.
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Major investments in the USA
In the USA, Globalfoundries is investing 16 billion US dollars over the coming years with an unknown amount of funding. Over 13 billion will be invested in the expansion and modernization of the sites in New York and Vermont, as well as in the financing of the recently opened New York Advanced Packaging and Photonics Center.
According to the announcement, 3 billion US dollars will flow “into advanced research and development initiatives” that “focus on packaging innovations, silicon photonics and next-generation GaN technologies.”
(mma)
