American semiconductor manufacturer GlobalFoundries has announced that it will build a new fabrication plant in Singapore to meet the unprecedented global demand for microchips.
The new facility will be developed in partnership with the Singapore Economic Development Board, GlobalFoundries said. More than $4 billion U.S. will be invested into its development.
A global shortage of semiconductor microchips is causing havoc, delaying car production and affecting operations at some of the largest consumer electronics manufacturers.
Semiconductors are critical components that power all kinds of electronics, from smartphones to computers to the brake sensors in cars. Their production involves a complex network of firms that design the chips, companies that manufacture them as well as those that supply the technology, materials and machinery to do so.
GlobalFoundries is a so-called "pure foundry," with factories in the U.S., Germany and Singapore. Foundries are companies that are contracted by semiconductor firms to build chips.
GlobalFoundries manufactures semiconductors designed by companies such as AMD (NASDAQ:AMD), Qualcomm (NASDAQ:QCOM) and Broadcom (NASDAQ:AVGO). Mubadala, a United Arab Emirates state investment company, owns GlobalFoundries.
The global chip shortage has highlighted the importance of foundries, which are investing billions in new production lines and upgraded equipment to meet the surge in demand.
Taiwan Semiconductor Manufacturing Company, or TSMC, is the world’s biggest foundry by market share and revenue. It has about 56% market share, followed by Samsung (18%), UMC (7%) and GlobalFoundries (7%).
Semiconductor designers and manufacturers are trying to make chips smaller and better. Curretly, only TSMC and Samsung have the ability to manufacture the most advanced chips.
Tech Insider
