Fueled by a 1.5 billion U.S. dollar CHIPS Act boost, GlobalFoundries’ expansion of its New York facilities serves as an example of how chip manufacturers are looking to build capacity to meet surging semiconductor demand. In the case of GlobalFoundries, supplying chips for the automotive, defense, aerospace, and artificial intelligence (AI) segments is a key objective. Due to its importance across a range of markets, GlobalFoundries sits as one of the world’s leading semiconductor foundries.
Building chips for the technologies that will drive the future
Headquartered in New York, GlobalFoundries traces its origin back to 2008, when AMD announced the intention to go fabless and spin off its semiconductor manufacturing business. Now, GlobalFoundries has operations across North America, Europe, and Asia, serving a range of clients across a variety of end markets including mobile devices, communications, IoT, and automotive. Notable customers of GlobalFoundries include Qualcomm, MediaTek, and NXP Semiconductors.
GlobalFoundries lags behind the likes of TSMC and Samsung
The foundry market leader is Taiwan Semiconductor Manufacturing Company (TSMC), with the company contracted to complete fabrication tasks for a variety of customers including Apple, AMD, and Qualcomm. TSMC occupies over 50 percent of the foundry market, with competitors including the likes of Samsung Foundry and Semiconductor Manufacturing International Corporation, in addition to GlobalFoundries. To meet the growing demands for semiconductors, chip manufacturers have announced investments that will support capacity increases, particularly in the development of new fabrication plants.
Building on partnerships in the United States and Europe
To address the challenges of the growing demand for semiconductors, governments around the world have set out investment plans and growth strategies to support the industry. The CHIPS Act in the United States allocates 52 billion U.S. dollars to boost domestic chip manufacturing. GlobalFoundries has capitalized on this by forming partnerships, such as a dedicated chip supply line for General Motors. Across the pond in Europe, the 43 billion euros available via the European Chips Act aims to strengthen research and build capacity. GlobalFoundries is again teaming up, this time with STMicroelectronics, to build a new chip factory in France, supported by the French government.
A key focus on its target markets and building strategic alliances
With expansion plans fueled by government support and a focus on vital technology sectors, GlobalFoundries is well-positioned to capitalize on the surging demand for semiconductors. A diverse client base, across automotive, defense, and AI, ensures its chips will power the future's most important technologies. While it faces competition from industry giants, its strategic partnerships and ongoing capacity increases solidify GlobalFoundries’ place as a leading foundry.
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