Globalfoundries Expansion Plans Likely to Make It World’s Second Biggest Maker of Advanced Chips [UPDATED]

Globalfoundries Expands Semiconductor Manufacturing Capacities

by Anton Shilov
06/01/2010 | 11:55 AM

UPDATE: Correcting manufacturing capacities of TSMC due to mistake in reporting.


Globalfoundries, a contract maker of semiconductors controlled by Advanced Technology Investment Company and Advanced Micro Devices, on Tuesday announced major plans to expand its manufacturing capacities. When the expanded fabs become fully operational, Globalfoundries may easily become the world’s second largest manufacturer of advanced chips, which are made on 300mm wafers.

190 Thousand 300mm Wafers Per Month in 2013

At the company's leading-edge Dresden manufacturing campus, Fab 1, the expansion focus will be on adding new capacity to support additional growth opportunities for 45/40/28nm technologies as well as initial 22nm development. This expansion will see a new facility constructed at Fab 1 that will add nearly 110 thousand square feet of clean room space to enable the site to scale output up to 80 thousand wafers per month over the next two years. The largest wafer fab in Europe, Fab 1's leading-edge wafer fabrication equipment will cover an area equivalent to approximately eight soccer fields. The first output from this new expansion is expected in 2011 with construction work planned to start immediately. The start of this expansion project at Fab 1 is, however, still subject to the approval of a state aid package by the German authorities and the European Commission.

To support long-term growth at the 22/20nm generation, Globalfoundries plans to expand Fab 8, the company's new leading-edge fab currently under construction at the Luther Forest Technology Campus in Saratoga County, New York. The expansion will increase the size of the cleanroom shell by approximately 90 thousand square feet, bringing the total available cleanroom space to approximately 300 thousand square feet, equivalent to roughly six soccer fields of state-of-the-art wafer fabrication equipment. Work on the shell expansion is expected to begin later this month pending final approval of an investment agreement with Empire State Development Corporation and the State of New York. The total facility, including cleanroom support infrastructure and office space, includes more than 1.3 million square feet of space and is expected to come online in 2012 with volume production targeted for early 2013. The larger cleanroom would allow for the future fit-up and equipment necessary to enable a total output of approximately 60 thousand wafers per month once fully ramped.

In addition to new expansion initiatives in Dresden and New York, Globalfoundries also is continuing with its previously announced expansion at Fab 7 in Singapore to reach an output level of 50 thousand wafers per month, an increase of nearly 50% from current levels. During the expansion, Fab 7 will continue to focus on manufacturing technologies ranging from the 65nm to 40nm technology nodes.

When the new expanded fab become fully operational, total Globalfoundries’ 300mm output will be around 190 thousand wafers per month. By contrast, the planned 300mm capacities of Taiwan Semiconductor Manufacturing Company and United Microelectronics Corp. are 271 thousand (plus one fab with unknown capacity) and 128 thousand wafers, respectively.

ATIC Establishes High-Tech Zone in Abu Dhabi

In addition to the capacity expansion projects at Fab 1 and Fab 8, ATIC announced initial plans for the creation of an advanced technology cluster in Abu Dhabi. The site, adjacent to Abu Dhabi International Airport and measuring three square kilometers in size, is ideally suited to house a future advanced technology cluster in the region with close proximity to regional transportation hubs and physical infrastructure. Globalfoundries is committed to partnering with ATIC to share best practices and expertise in cluster creation in the near-term and putting a significant technology and manufacturing presence in the region long term. The goal for the site is to be the Middle Eastern hub of a global technology and manufacturing network to support the long-term deployment of capital for ATIC portfolio companies, in capital-intensive advanced technologies.

"The formation of the new Globalfoundries was predicated on creating a world-class technology and manufacturing company that had the scale and resources to compete for industry leadership in this capital intensive market. For ATIC, this also represented the first step in Abu Dhabi's vision to become a leader in the semiconductor industry. Today we announce the next phase as we take our first steps in establishing a world-class advanced technology cluster over the coming years. We look forward to working with the Globalfoundries team to leverage the collective successes of Singapore, Dresden and New York as we create the industry's next innovation cluster in Abu Dhabi,” said Ibrahim Ajami, chief executive officer of ATIC.