Image: GlobalFoundries

The world’s third-largest foundry by revenue is looking to expand. In an interview with Reuters, GlobalFoundries CEO Thomas Caulfield discussed bold plans for the company’s future. From doubling its investments and opening new plants to an earlier IPO, there are many things on the horizon. The ongoing effects of the global pandemic have led to an aggressive strategy for the chip manufacturing company.

Caulfield said that prior to the pandemic, chip manufacturing growth was only expected to increase by 5 percent over five years. The new forecast is double that. The increased demand from the automotive and electronics sectors has led to global shortages. Competitors Samsung and TSMC have also been struggling to meet the new demand. GlobalFoundries expects a 9 to 10 percent increase in revenue growth over the coming year, which could happen if it can achieve a 13 percent production growth in 2021 and then 20 percent in 2022.

GlobalFoundries is laying out a number of plans to meet these demands. It will be investing $1.4 billion in 2021 to increase production at three factories around the world for its 12 nm to 90 nm processes. Roughly a third of that investment will come from customers seeking to secure inventory. Anandtech notes that GlobalFoundries spends $700 million on expansion in a typical year. Furthermore, it may build a new plant in New York after securing 66 acres. Lastly, it may bring forward its IPO to late 2021 or the first half of next year.

Peter Brosdahl

As a child of the 70’s I was part of the many who became enthralled by the video arcade invasion of the 1980’s. Saving money from various odd jobs I purchased my first computer from a friend of my...

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6 Comments

  1. GloFlo has been a bit behind the leading edge for a while now. Not that they are hurting for business, there are plenty of customers that don’t always need an industry-leading process node, but I don’t know I’ve ever heard of GloFlo being used for anything bleeding edge since… AMD spun them off.

    And maybe it speaks louder— AMD didn’t really start to take off until their exclusivity agreement with GloFlo expired (7nm and better processes)

  2. There’s a huge market for them. Not everything needs to be on 7nm or smaller.

    Too true. According to the article there’s a number of automanufacturers that are being affected by the chip shortage and I doubt they have quite the same needs we see in the PC community.

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