12-9-2023 (SINGAPORE) GlobalFoundries, the world’s third-largest contract semiconductor manufacturer, inaugurated a $4 billion manufacturing plant in Singapore on Tuesday as part of its global expansion efforts to alleviate the ongoing supply crunch in the industry.
The semiconductor sector has been grappling with disruptions caused by the pandemic, high inflation, and sluggish global economic growth, exacerbated by geopolitical tensions. However, there are signs of recovery in the industry.
The new facility in Singapore, when operating at full capacity by 2025 to 2026, is projected to produce an additional 450,000 wafers annually, boosting the city-state’s overall capacity to 1.5 million wafers per year, according to General Manager Tan Yew Kong.
These chips, primarily used in smartphones and other mobile devices, are now in high demand from automakers, particularly for electric vehicles, further intensifying the need for increased production.
The chip shortage, worsened by rising prices and economic slowdown, was exacerbated by pandemic-related shutdowns. However, analysts and industry experts anticipate a recovery in demand.
“The key megatrends of our industry – digitization, connectivity, cloud computing – are all driving acceleration to a more connected and data-centric world,” said GlobalFoundries President and CEO Thomas Caulfield during the launch. He emphasized the industry’s central role in the global economy and the ubiquitous nature of semiconductors in enhancing human life.
Caulfield also stated that despite current economic headwinds, the company predicts the industry will double in size over the next decade, with artificial intelligence (AI) serving as a catalyst for this growth.
The Singapore facility, spanning 23,000 square meters, broke ground in 2021 and serves to expand GlobalFoundries’ global footprint, which already includes plants in the United States and Europe.
Presently, Singapore accounts for 11% of the global semiconductor market, with its chip output.
According to estimates by industry monitor World Semiconductor Trade Statistics, the global semiconductor market is projected to experience a 10.3 percent decline this year but is expected to recover by 2024 and grow by 11.8 percent.
