GlobalFoundries(GFS), the third largest manufacturer of chips in the world, has opened a $4 billion manufacturing plant in Singapore to increase its capacity in anticipation of a surge in demand for semiconductor chips.
KEY TO REMEMBER
- GlobalFoundries has opened a $4 billion facility in Singapore to expand its capacity.
- The facility, which will be the most advanced to date in Singapore, could help increase capacity of the #39;450,000 wafer company. to 1.5 million platelets per year.
- The company expects demand for chips to double over the next decade.
The manufacturing plant, expected to be Singapore's most advanced semiconductor plant to date, will produce An additional 450,000 wafers (300mm) per year, bringing the chipmaker's overall capacity in Singapore to around 1.5 million wafers each year.
After TSMC and Samsung, GlobalFoundries is the third foundry in the world in terms of turnover. And while the semiconductor industry has suffered from weak demand since the second half of 2022, GlobalFoundries expects chip demand to recover by the second half of 2024, with a doubling over the next decade.
Around a fifth of turnover Global Semiconductor equipment is manufactured in Singapore, which accounts for approximately 11% of the global semiconductor market share. Singapore also plans to become a global hub for advanced manufacturing as part of its Manufacturing 2030 vision.
Shares of GlobalFoundries rose 1.8% in early trading Tuesday as of 12 p.m. ET following the news and are up about 11% year to date.
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Source: investopedia.com