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To Meet the ‘Growth in demand for basic semiconductor chips
This Tuesday, Sep.12th, 2023, GlobalFoundries made a groundbreaking announcement about the inauguration of a massive $4 billion expansion facility for semiconductor manufacturing in Singapore. This strategic move aligns with the chip manufacturing giant’s vision of meeting the surging demand for essential semiconductor chips.
Thomas Caulfield, the esteemed President and CEO of GlobalFoundries shared his visionary insights in a pre-opening interview with CNBC. He boldly predicted, “I firmly believe that in the next decade, this industry will experience yet another remarkable doubling in its growth.”
Mr. Caulfield elaborated on the catalysts fueling this profound transformation, encompassing “novel critical applications, the entire realm of artificial intelligence, and its profound societal impact.” All these factors converge to create an unprecedented demand for semiconductor chips.
Notably, Mr. Caulfield also commented on the state of various industries, stating, “The automotive industry continues to exhibit remarkable resilience. The AI domain remains exceptionally robust. Industrial stocks are maintaining their steadfastness. However, anything linked to the consumer sector still faces challenges.”
GlobalFoundries operates as a crucial foundry, collaborating with semiconductor enterprises to manufacture cutting-edge chips. The company specializes in producing semiconductors tailored to the specifications of industry leaders like Qualcomm, MediaTek, and NXP Semiconductors, serving a clientele of approximately 200 global partners.
These chips play a pivotal role in a wide spectrum of applications, including smartphones, laptops, automobiles, virtual reality systems, video game consoles, and smart speakers, and are integral to the burgeoning fields of artificial intelligence and 5G technology.
According to statistics from the Singapore Semiconductor Industry Association, Singapore plays a pivotal role in the global semiconductor landscape, contributing 11% of the world’s semiconductor supply.
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Cooperation with Singapore
According to TrendForce, a leading market intelligence provider, GlobalFoundries holds the prestigious position of being the world’s third-largest foundry in terms of revenue, with only TSMC and Samsung ahead in the rankings.
A press release issued by the company highlights the significance of their latest endeavor—a sprawling 23,000-square-meter wafer fabrication facility in Singapore. This facility is set to significantly bolster GlobalFoundries’ global manufacturing capabilities, allowing them to better serve customers spanning three continents.
In the announcement, it was emphasized, “As the most cutting-edge semiconductor fab in Singapore to date, the expanded wafer facility will introduce an additional 450,000 wafers (300mm) annually, thereby elevating the total capacity of GlobalFoundries Singapore to an impressive 1.5 million wafers (300mm) per year.”
This ambitious expansion can be traced back to GlobalFoundries’ acquisition of the Singapore-based Chartered Semiconductor Manufacturing Company in 2010, which included the inherited wafer fab.
Currently, the facility boasts a production capacity of 720,000 wafers (300mm) and 692,000 wafers (200mm) per year, serving as the fundamental building blocks for chip manufacturing.
GlobalFoundries also highlighted the positive impact this venture will have on employment, predicting the creation of approximately 1,000 “high-value” job positions in Singapore. These positions will predominantly comprise equipment technicians, process technicians, and engineers, with the majority of the workforce focused on technical roles. Presently, the Singapore facility already supports around 4,500 employees.
Back in June 2021, GlobalFoundries unveiled a strategic partnership with the Singapore Economic Development Board, announcing plans to construct a new wafer fab within their existing Singapore campus. This initiative was spurred by the global demand for semiconductor chips at that time.
Fast forward to the following June, and the publicly traded semiconductor manufacturer made a significant milestone by relocating its first tool to the Singapore facility, complementing its manufacturing facilities in the United States and Germany.
Speaking on the enduring partnership between GlobalFoundries and the Singapore government, Thomas Caulfield, the company’s President and CEO, shared his insights with CNBC’s Sri Jegarajah. Caulfield noted, “GlobalFoundries has a longstanding partnership with the Singapore government. The government has implemented industrial policies aimed at fostering high-tech manufacturing and innovation in the region. That’s why you see so many esteemed companies engaged in manufacturing here.”
He added, “What’s transpiring now is that as other nations recognize the pivotal role of semiconductor manufacturing in ensuring regional sovereignty, supply chain security, and economic stability, they too aspire to establish semiconductor manufacturing capabilities. This necessitates adjustments in their industrial policies to create a competitive environment for manufacturing and economic competitiveness within their respective regions.”
In a nod to the ever-advancing landscape of technology, GlobalFoundries also highlighted that this expansion would integrate cutting-edge artificial intelligence tools aimed at boosting productivity. These tools include wafer pattern recognition for automated wafer defect classification and discovery, solidifying GlobalFoundries’ commitment to innovation and excellence in semiconductor manufacturing.
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GlobalFoundries: Innovations Driving Automotive Tech
During the COVID-19 pandemic, smartphone and personal computer manufacturers experienced a surge in demand, prompting them to amass stockpiles of semiconductor chips. However, as inflation rates have soared, consumers have scaled back their purchases of these products, leading to a glut of semiconductor chip inventory and a subsequent decline in chip prices.
The repercussions of this ongoing soft demand for semiconductor chips have manifested in the financial reports of major players in the industry, including Taiwan’s TSMC and South Korea’s Samsung, both of which reported reduced profits in the second quarter.
Thomas Caulfield, addressing the situation, commented, “We observed semiconductor companies continuing to accumulate inventories in the second quarter of this year, albeit at a slower pace. Encouragingly, we are also witnessing downstream inventory levels in the supply chain, particularly among system companies, starting to dwindle. This suggests that there may be early signs of inventory correction.”
Nevertheless, Caulfield underscored that effective control of global inflation remains a prerequisite. Only after achieving this can interest rates be adjusted to stimulate consumer spending and restore the health of the market.
Shifting gears to August 29th, GlobalFoundries made significant strides in its two technology platforms to meet the evolving technological demands associated with autonomous driving, smart connectivity, and electric vehicles. One standout innovation is the 40ESF3 AutoPro175 technology, which is set to integrate into GlobalFoundries’ existing AutoPro™ technology platform. This development will provide automotive clients with a comprehensive suite of technology solutions and production services, streamlining the certification process and expediting product launches. Notably, this technology boasts a junction temperature of 175°C, making it well-suited for managing critical functions in vehicles operating under extreme temperature conditions.
Jens Fabrowsky, Executive Vice President of Bosch Automotive Electronics, shared his enthusiasm, stating, “By harnessing GlobalFoundries’ 40nm technology on the AutoPro platform, Bosch is poised to continue developing cutting-edge solutions to meet the growing demands of the automotive industry’s software-defined cars, which rely on controllable and dependable complex electronic systems.”
In addition to this, GlobalFoundries is making notable strides in its power management solutions, including the 130BCDLite Gen2 ATV125, a part of the BCD/BCDLite® platform. This technology serves diverse automotive applications, enabling micro-scale processes, achieving enhanced conversion efficiency, and supporting products with voltages up to 40V—all while adhering to stringent automotive 1-grade standards. This underscores the reliability of vehicles even under extreme automotive temperature conditions. Notably, more than 30 customers have embraced the 130BCD/BCDLite platform, leveraging it for cost-effective product development, and consolidating various functions and power devices across different voltage ranges.
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