GlobalFoundries, a Semiconductor manufacturer is increasing its production capacity with a hefty investment of US$4 billion in partnership with the Singapore Economic Development Board (EDB) and co-investments from customers. The US$6 billion committed over the next few years is on top of GlobalFoundries’ planned US$1.4 billion investment in 2021 to raise output at its factories.

The addition of a new manufacturing plant, comes amid a global chip shortage and is expected to add around 1,000 jobs, the firm said on Tuesday (June 22). About 95 per cent of these jobs will be high-value roles such as equipment technicians, process technicians, and engineers.

The facility is slated to ramp up to full capacity by early 2024. The fully-automated fab will have about 250,000 sq ft of cleanroom space and add about one-third wafer production capacity to the company’s Singapore operations, bringing its capacity to about 1.5 million wafers per year.

Singapore accounts for about one-third of GlobalFoundries’ revenue and serves about 200 customers worldwide. The manufacturer has about 4,800 employees here around a third of its global headcount.

The firm is accelerating its investments around the world to meet the challenge of the global chip shortage, Dr Caulfield said, adding that he expects that supply will still be outpaced by demand in the next five to eight years.

The chipmaker’s efforts to expand capacity come as the global chip shortage continues, with supply outstripped by demand and prices for consumer goods going up as a result. Automakers and consumer electronics manufacturers have been hit, leading to delays in production and higher prices.

The virtual groundbreaking ceremony for GlobalFoundries’ new Singapore fab on Tuesday was witnessed by Transport Minister and Minister-in-charge of Trade Relations S. Iswaran and Mubadala Investment Company managing director and group CEO Khaldoon Khalifa Al Mubarak, among others.