GlobalFoundries plans $4B Singapore plant to meet chip demand
GlobalFoundries has reportedly begun construction on a $4 billion facility that will manufacture semiconductors. The facility is located in Singapore and aims to meet the growing chip demand. The company states that its long-term customer agreements have already been formed in key market segments such as 5G and automotive. The plant is projected to start production in 2023. GlobalFoundries is owned by the United Arab Emirates state-owned wealth fund, Mubadala Investment Company.
In 2020, global semiconductor revenue climbed 10/8% year-on-year to hit $464 billion, according to IDC. The market is projected to grow by 12.5% this year, reaching $522 billion in revenue. This is due to high growth markets such as 5G, automotive, consumer products, and computing as key drivers for semiconductor demand. Revenue from smartphone chips is expected to increase drastically this year. GlobalFoundries states that the plant in Singapore will support fast-growing markets to feed into the demand for more semiconductors.