GlobalFoundries Touts $10 Billion Fab 8 Module 2

GlobalFoundries Looks Forward Second Module of Fab 8

by Anton Shilov
01/15/2013 | 11:56 PM

Even though Globalfoundries’ Fab 8 module 1 semiconductor production facility is not yet fully utilized and officially has not even begun production, the company has already started to think about the second module of the fab, which is projected to be even more advanced and costly than the current $6.9 billion factory.


Speaking at a conference dedicated to Globalfoundries’ new Technology Development Center (TDC), which will be located adjacent to the company’s Fab 8 and will cost $2 billion, Ajit Manocha, chief executive officer of the company, said that the company would continue to expand its presence in the Luther Forest Technology campus and the New York state. One of the projects that the leading contract maker of chips is thinking of is Fab 8 module 2.

“This journey will continue. GlobalFoundries is committed to doing business in New York and, most importantly, innovation in New York state. There is a big benefit to doing work right here. […] This is still the beginning of our start, because there is going to be a Fab 8.2. That will be probably close to a $10 billion investment, when we are ready," said Ajit Manocha, reports the Business Review web-site.

The land that Globalfoundries owns in the LFTC was acquired with several modules of the Fab 8 in mind, hence, it is not a surprise that the company is looking forward to build additional production capacities in the New York state as the demand for leading-edge chips is on the rise.

Fab 8 module 1 consists of four major buildings including the wafer fabrication building, the central utility building (CUB), the Spine or fab technical support building, and the administration building. Additionally, there is an electric substation building and a hazardous production materials warehouse, as well as other miscellaneous structures and utility yards.

The cost of around $10 billion is significantly higher than the total investments into Fab 8 module 1 ($6.9 billion), which may either point to the fact that the new factory will be significantly larger than the current one or that it will be Globalfoundries’ first facility that processes 450mm wafers.

Back in September, 2011, Intel, IBM, Globalfoundries, Taiwan Semiconductor Manufacturing Co. and Samsung entered into agreements with the New York state to investments a total of $4.4 billion over the next five years to create the next generation of semiconductor manufacturing technologies and develop standards for semi fabs that process 450mm wafers.

GlobalFoundries has received over $2 billion in incentives from the state of New York to build its Fab 8 module 1 and supporting buildings. When the company decided to expand the Fab 8 module 1 in 2010, it also asked for incentives from the state and got them in 2012. Since so far the contract maker of semiconductors has not requested any additional incentives from New York, it is unlikely that the construction of the module 2 is scheduled to begin in the short-term future.