Globalfoundries to expand production

Posted on Thursday, Apr 18 2013 @ 13:06 CEST by Thomas De Maesschalck
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FUD Zilla writes Globalfoundries is increasing its capital spending this year to expand its production. The foundry will spend $4.4 billion this year, $600 million more than in 2012.
Contract chip manufacturer GlobalFoundries is stepping up its spending to expand production. The company plans to spend $4.4 billion this year to expand production as demand for smartphones and tablets climbs. According to Bloomburg GloFlo will expand in all three of its manufacturing locations, Germany, Singapore and the US. Last year the company spent $3.8 billion. The cash will met by internally generated cash and funding from Abu Dhabi-based parent, Mubadala Development.

Sales of semiconductor wafers at GlobalFoundries helped Mubadala, the state-owned company with investments in General Electric and Carlyle Group, to return to profit last year. Microsoft will use an AMD processor in its next Xbox. AMD is still one of GlobalFoundries’ biggest clients. Currently GloFlo is one of the few chip manufacturers able to spend billions of dollars to build factories that can churn out the processors and communications chips needed to run the newest handsets. This is mostly thanks to its backers in the oil-rich Abu Dhabi government.

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Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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