GlobalFoundries Announces Fabrication Expansion Plans

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News Posted: Tue, Jun 1 2010 7:33 PM
At this time last year, everyone in the PC industry was worried sickabout where the future was headed. Were the days of yearly PC upgradesover? Should we cut production? Should we transition out of the high-endsector? We're sure major chip makers like Intel were running thesethoughts through their heads, and we figure GlobalFoundries was nodifferent. But this year at the Computex trade show in Taiwan, thecompany is all smiles with plans for major expansion in the monthsahead.

GlobalFoundries is the manufacturing arm for AMD processors (among othercompanies), and this week they're announcing plans to "expand itsglobal semiconductor manufacturingoperations with a series of new projects across its 300mmoperationsdesigned to support expected increases in both near-term andlong-termcustomer demand." An additional wafer manufacturing plant will bebuilt in Dresden, and the company will expand the cleanroom shell at afabrication plant in New York. No matter how you slice it, it's great tohear of a fabricator expanding during uncertain times. Chia Song Hwee,chief operatingofficer, had this to say:

"Our 300mm fabs have been consistently ranked among the most advancedand efficient in the industry. Now we are taking our heritage ofleanfoundry manufacturing and world-class fab performance and makingitavailable on a broader scale to meet the demands of the world’sleadingchip design companies. With this aggressive capacity build-outplan, weare well positioned to provide new and existing customers with thefastest option to get advanced products to market in the volumestheyneed to ensure success."

Additional details can be found below; it's hard to say what exactly theimpact of these builds will have on future AMD chips, but having theability to produce more on a whim certainly bodes well for anyoneworking in collaboration with GlobalFoundries. C'mon AMD, give theseguys a reason to push their new maximums to the limit.

  • The construction of an additional wafer manufacturing facility at Fab 1 in Dresden designed to add additional 45/40/28nm capacity and increase overall output to 80,000 wafers per month once fully ramped
  • Expanding the cleanroom shell currently under construction at Fab 8 in New York to provide the option to increase capacity at 28/22/20nm and bring overall site output up to 60,000 wafers per month once fully equipped

By making additional investments in leading-edge capacity,GLOBALFOUNDRIES continues to take an aggressive long-term approachtodriving sustained growth and technology leadership on advancedtechnologies. These new expansion projects are also expected tocreatehundreds of new jobs at the Fab 1 and Fab 8 campuses.

“Our 300mm fabs have been consistently ranked among the mostadvancedand efficient in the industry,” said Chia Song Hwee, chiefoperatingofficer, GLOBALFOUNDRIES. “Now we are taking our heritage of leanfoundry manufacturing and world-class fab performance and makingitavailable on a broader scale to meet the demands of the world’sleadingchip design companies. With this aggressive capacity build-outplan, weare well positioned to provide new and existing customers with thefastest option to get advanced products to market in the volumestheyneed to ensure success.”

At the company’s leading-edge Dresden manufacturing campus, Fab 1,theexpansion focus will be on adding new capacity to supportadditionalgrowth opportunities for 45/40/28nm technologies as well asinitial 22nmdevelopment. This expansion will see a new facility constructed atFab 1that will add nearly 110,000 square feet of cleanroom space toenablethe site to scale output up to 80,000 wafers per month over thenext twoyears. The largest wafer fab in Europe, Fab 1’s leading-edge waferfabrication equipment will cover an area equivalent toapproximatelyeight soccer fields. The first output from this new expansion isexpected in 2011 with construction work planned to startimmediately.The start of this expansion project at Fab 1 is, however, stillsubjectto the approval of a state aid package by the German authoritiesand theEuropean Commission.

To support long-term growth at the 22/20nm generation,GLOBALFOUNDRIESplans to expand Fab 8, the company’s new leading-edge fabcurrentlyunder construction at the Luther Forest Technology Campus inSaratogaCounty, New York. The expansion will increase the size of thecleanroomshell by approximately 90,000 square feet, bringing the totalavailablecleanroom space to approximately 300,000 square feet, equivalenttoroughly six soccer fields of state-of-the-art wafer fabricationequipment. The total facility, including cleanroom supportinfrastructure and office space, includes more than 1.3 millionsquarefeet of space and is expected to come online in 2012 with volumeproduction targeted for early 2013. The larger cleanroom wouldallow forthe future fit-up and equipment necessary to enable a total outputofapproximately 60,000 wafers per month once fully ramped.

In addition to the capacity expansion projects at Fab 1 and Fab 8,GLOBALFOUNDRIES majority shareholder, the Advanced TechnologyInvestmentCompany (ATIC), announced initial plans for the creation of anadvancedtechnology cluster in Abu Dhabi. The site, adjacent to Abu DhabiInternational Airport and measuring three square kilometers insize, isideally suited to house a future advanced technology cluster intheregion with close proximity to regional transportation hubs andphysicalinfrastructure. GLOBALFOUNDRIES is committed to partnering withATIC toshare best practices and expertise in cluster creation in thenear-termand putting a significant technology and manufacturing presence intheregion long term. The goal for the site is to be the MiddleEastern hubof a global technology and manufacturing network to support thelong-term deployment of capital for ATIC portfolio companies, incapital-intensive advanced technologies.

“The formation of the new GLOBALFOUNDRIES was predicated oncreating aworld-class technology and manufacturing company that had thescale andresources to compete for industry leadership in this capitalintensivemarket,” said Ibrahim Ajami, chief executive officer, ATIC. “ForATIC,this also represented the first step in Abu Dhabi’s vision tobecome aleader in the semiconductor industry. Today we announce the nextphaseas we take our first steps in establishing a world-class advancedtechnology cluster over the coming years. We look forward toworkingwith the GLOBALFOUNDRIES team to leverage the collective successesofSingapore, Dresden and New York as we create the industry’s nextinnovation cluster in Abu Dhabi.”

In addition to new expansion initiatives in Dresden and New York,GLOBALFOUNDRIES also is continuing with its previously announcedexpansion at Fab 7 in Singapore to reach an output level of 50,000wafers per month, an increase of nearly 50 percent from currentlevels.During the expansion, Fab 7 will continue to focus onmanufacturingtechnologies ranging from the 65nm to 40nm technology nodes.

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3vi1 replied on Wed, Jun 2 2010 9:05 PM

This is a pleasant surprise. Has GF secured a lot of ARM contracts or something (Nvidia deal) since AMD cut them loose?

What part of "Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn" don't you understand?


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la_guy_10 replied on Thu, Jun 3 2010 12:01 AM

This is going to put alot of pressure on TSMC, cause if yields are as bad as they were @ the 40nm as we saw with ATI and Nvidia more people will switch over to Global Foundries.

It would not surprise me to see Nvidia make the switch over, Global Foundries is positioning themselves well.

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realneil replied on Thu, Jun 3 2010 10:35 AM

Good, more power to them.

Healthy competition is good for the consumer and the more competition these guys can give the Borg, the better for you and I.

Dogs are great judges of character, and if your dog doesn't like somebody being around, you shouldn't trust them.

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