GlobalFoundries, a U.S.-headquartered semiconductor foundry, has opened a new $4 billion expansion fabrication plant in Singapore to meet the growing demand for essential semiconductor chips. The company anticipates significant industry growth in the coming decade, driven by new applications, artificial intelligence (AI), and other factors. GlobalFoundries is the world’s third-largest foundry by revenue and serves approximately 200 customers globally, including Qualcomm, MediaTek, and NXP Semiconductors.
The expansion facility in Singapore will increase the company’s global manufacturing footprint and capacity, producing an additional 450,000 wafers annually, raising GlobalFoundries Singapore’s overall capacity to approximately 1.5 million wafers each year. This expansion will also create about 1,000 high-value jobs in Singapore, primarily in technical roles.
GlobalFoundries’ partnership with the Singapore government has played a crucial role in the expansion, aligning with the nation’s industrial policies to promote high-tech manufacturing and innovation. Singapore currently supplies 11% of the world’s semiconductors.
The semiconductor industry has faced challenges, including excess inventories of memory chips and falling prices due to changing consumer demand. However, there are signs of inventory correction, and companies like GlobalFoundries are positioning themselves to meet future demands, especially in areas like AI and 5G.
As semiconductor manufacturing gains importance for sovereign security, supply chain resilience, and economic security, other regions are likely to seek semiconductor manufacturing capabilities and adjust their industrial policies accordingly.
GlobalFoundries’ expansion in Singapore represents a significant step in strengthening the semiconductor supply chain and meeting the growing global demand for essential chips.
