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$6 billion expansion!GlobalFoundries expected to boost car chip production this year

On September 16, according to foreign media reports, GlobalFoundries, a US semiconductor foundry, said that in response to the unprecedented global supply shortage, the company is expected to at least double the production of automotive chips this year, and will invest 6 billion yuan. USD expands overall production capacity.

Of this additional $6 billion, $4 billion will be used to expand capacity at the Singapore plant, and the German and U.S. factories will each invest $1 billion each to expand capacity.

Since the second half of 2020, the problem of chip shortages has become the main theme of the semiconductor industry. Today, the problem has impacted industries including automobiles, mobile phones, game consoles, and PCs.

Mike Hogan, GF’s senior vice president for automotive, warned that the trend of tight chip supply will “continue into next year as it takes a significant amount of time for new investment to translate into production capacity.”

Founded in 2009, GF is an American chip foundry whose customers include chipmakers such as Qualcomm, AMD, Broadcom and STMicroelectronics.

In August, people familiar with the matter said GF had filed confidentially for an IPO that could value the company at around $25 billion.

According to foreign media, the move shows that GF is not eager to accept Intel’s merger proposal. Earlier, in mid-July, people familiar with the matter said that Intel was in talks to buy Luofangde for about $30 billion, as the company sought to expand its direct manufacturing business amid a semiconductor shortage.

At the time, GF was expected to disclose its IPO filing in October and go public by the end of this year or early next year, depending on how quickly the U.S. Securities and Exchange Commission (SEC) processes its filing, the sources said.