GlobalFoundries to expand US HQ, increasing its semiconductor output

You may have noticed GlobalFoundries (GF), a US-based semiconductor manufacturer, finding its way into world news over the past few weeks.

In the last month, the Malta, NY-based company 1) announced a plan to build a new $4 billion fabrication plant in Singapore 2) unveiled its plans to expand its HQ in the States and 3) was rumored to be the target of a proposed $30 billion acquisition by Intel.

• The new American factory will increase GF's output, and the company plans to invest another $1 billion to upgrade its existing factory and boost output by 150K chips.

Some background: Though it’s HQ’d in NY, GlobalFoundries is owned by UAE sovereign wealth fund Mubadala Investment Co. GF is one of the top 5 largest chip production companies in the world, making advanced semiconductors for big names like Apple, Intel, and Amazon.

• It spun off from Advanced Micro Devices (AMD) and Singapore’s Chartered Semiconductor in 2009, and has since grown to capture up to 7% of the foundry market share by revenue.
• Living up to its ~ global ~ billing, GF has offices in upstate New York, Vermont, and overseas in Singapore and the EU.

Looking ahead: There are hurdles the Intel deal would need to overcome. AMD, which maintains close ties to GF and is Intel’s direct rival, recently agreed to a $1.6 billion chip component supply deal with GF that could complicate an Intel acquisition. Additionally, GF CEO Tom Caulfield dismissed rumors of an Intel takeover, saying GlobalFoundries is sticking to its plan to go public in 2022.—JM