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As Globalfoundries infamous Fab 8 is getting ready, it requires less investments since the majority of them have already been made. With the major project of the recent years on the home stretch and market demand uncertain, the company has decided to slowdown spending on expansion of manufacturing capacities.

Ajit Manocha, chief executive officer of Globalfoundries, told Businessweek that the company would spend around $3 billion on capacity expansion this year, down from $5.4 billion in 2011. The company will continue to invest into all of its existing products facilities across the world, but not as significantly as in the previous year.

“We have not missed any of our commitments from Singapore. Globalfoundries is not just Dresden,” said Ajit Manocha.

Earlier the company said it would not initiate construction of a new manufacturing facility in Abu Dhabi in 2012 due to uncertain market conditions. The fab is still in plans, but the decisions about the construction start will be made at a later date.

Mr. Manocha did not elaborate whether the company intends to spend similar or higher amounts of money on development of new process technologies this year. Modern fabrication processes improve competitive advantages of contract semiconductor makers even more significantly than production capacities.

Tags: Globalfounfries, Semiconductor, Business, 300mm, 28nm, 32nm

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Comments currently: 4
Discussion started: 01/19/12 01:02:27 PM
Latest comment: 01/23/12 05:51:36 AM
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why not spend them of fixing yield issues and 32nm leaks and new processes like 28nm, 22nm and 14nm?
some people are so greedy
0 0 [Posted by: madooo12  | Date: 01/19/12 01:02:27 PM]
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It says they are cutting money for expansion, not for R&D. For all you know this money is being reallocated for R&D...
0 0 [Posted by: daneren2005  | Date: 01/19/12 03:28:29 PM]
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if so, then good for them
0 0 [Posted by: madooo12  | Date: 01/19/12 05:58:12 PM]
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they need to be able to recoup their R&D investment at least.

so that means there are restraints on the R&D budget based on their capacity and market demand.

their capacity has increased a lot, tripling from what AMD had, + the capacity of chartered. so their R&D budget will be much larger then anything AMD could have spent. but they aren't going to increase is further massively all of a sudden. the economics of that just don't work out.
0 0 [Posted by: Countess  | Date: 01/23/12 05:51:36 AM]
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