The American chip company GlobalFoundries has earmarked 4 billion dollars to construct a new chip factory in Singapore. According to the group, the new production location should help to meet the solid demand for chips.
In addition to that factory, GlobalFoundries will also expand its locations in Germany and the United States.
Here, $1 billion is being made available for each country. The company follows the example of other major chip manufacturers such as Taiwanese TSMC and South Korean Samsung Electronics. They are also spending billions on increasing production capacity due to strong demand.
The Singapore factory is expected to supply chips primarily for smartphones and cars from 2023. However, the car sector, in particular, is suffering from large chip shortages, which means that factories are temporarily shut down. The Abu Dhabi sovereign wealth fund owns GlobalFoundries.
The company is said to be working on an IPO in New York, which should value the company at $30 billion. CEO Tom Caulfield thinks that the demand for chips will exceed the supply in the coming years.