- It is aiming for revenue growth of 9 per cent to 10 per cent from just over $5.7 billion last year
- GlobalFoundries said the $1.4 billion, which will be divided evenly among its fabs in Dresden, Germany, Malta, New York and Singapore
As per a report by Reuters, GlobalFoundries will invest $1.4 billion this year to raise output at three factories in the United States, Singapore and Germany, its chief executive said. The report added that it may also bring forward its initial public offering to late 2021 or the first half of next year, from a previous target of late 2022 or early 2023. The report added that it is aiming for revenue growth of 9 per cent to 10 per cent from just over $5.7 billion last year.
The report added that the GlobalFoundries CEO Thomas Caulfield told Reuters that the adoption of technology that would normally have taken a decade happened in one year in 2020 because of COVID-19. He said that before the pandemic, the chip industry was projected to grow five per cent over a five-year horizon and now it has accelerated to grow at twice that rate.
A third of the investment will come from clients
The report added that GlobalFoundries said the $1.4 billion, which will be divided evenly among its fabs in Dresden, Germany, Malta, New York and Singapore, will begin to ramp up output through 2022 to produce chips from 12 to 90 nanometers. It added that a third of the investment will come from clients seeking to lock in supply over several years, Caulfield said. He forecasted a 20 per cent rise in production next year following an expected 13 per cent increase in 2021.
The report added that if the demand continues to rise GlobalFoundries could build a new plant adjacent to its Malta, New York, plant after securing a purchase option agreement for about 66 acres of undeveloped land last year.
