Globalfoundries: Europe Does Not Do Enough to Stimulate Chip Manufacturing

Globalfoundries Calls Europe to Support Chip Manufacturing

by Anton Shilov
12/11/2012 | 11:30 PM

Ajit Manocha, chief executive officer of Globalfoundries, claims that while authorities in Asia and the U.S. provide loads of incentives that stimulate building of advanced semiconductor manufacturing fabs, Europe does not do enough to stimulate establishment of new factories. Globalfoundries has a leading-edge manufacturing facility in Germany, but its most advanced factory is about to start operations in New York, USA.


"This is a competitive world. If I go to Asia they will roll out the red carpet for us, they will do lots of subsidies. The State of New York does a good job. Europe is not playing that role properly,” said Ajit Manocha of Globalfoundries, at a conference on Tuesday, reports Reuters news-agency.

Globalfoundries received incentives from the state of New York to build its 300mm fab 8 in Saratoga Country, the project that many consider as the the largest commercial capital expansion project in the USA. In addition, the New York state will also invest $400 million in an engineering college as part of a wider deal for a consortium of Intel, TSMC, Samsung Electronics, IBM and GlobalFoundries to spend $4.4 billion there over five years to develop next-generation chip manufacturing technologies.

Privately-held Globalfoundries is also investing in expansion of its fab 1 in Dresden, Germany, but it is not receiving any incentives either from the state of Saxony or the government of Germany.

It is interesting to note that Globalfoundries is by far not the first company, which complains about the lack of any help from the European authorities when it comes to manufacturing of semiconductors. Earlier this year Future Horizons, a leading semiconductor business market tracker, wrote in a report that the European Union will have to help manufacturers to build  next-generation 450mm factories in the EU so not to be behind Taiwan, Singapore and the U.S.