SINGAPORE: Chipmaker GlobalFoundries said on Tuesday it will spend $6 billion to expand capacity at its factories in Singapore, Germany and the United States amid a chip shortage that is hurting automakers and electronics firms globally.
The US-based company, owned by Abu Dhabi’s state-owned fund Mubadala, said it will invest more than $4 billion in Singapore, and $1 billion each in the others over the next two years. The unlisted company’s Singapore operations contribute about a third of its revenue.
“I think the next five to eight years, we’re going to be chasing supply not demand as an industry,” GlobalFoundries CEO Thomas Caulfield told a media briefing. He added that the company was prioritising automotive customers.
Tuesday’s expansion is in addition to the company’s previously announced plan to invest $1.4 billion in 2021 alone to expand its manufacturing capacity.
The chip shortage, which began in earnest in late December, was caused in part by automakers miscalculating demand for semiconductors in the pandemic. It was aggravated by electronics manufacturers placing more chip orders as work-from-home practices fueled a surge in sales of computers and other devices.
Large chipmakers including Intel Corp. have warned that the shortage will last well into next year. Intel announced in March a $20 billion plan to expand its advanced chip making capacity, while Taiwan’s TSMC said in April it will invest $100 billion over the next three years.
As well, governments, including those of the United States and Japan, have intervened to urge faster supplies. Earlier this month, the United States approved $54 billion in funds to increase US production and research into semiconductors and telecom equipment.
Caulfield said funding for GlobalFoundries’ expansion plan included investments from governments and pre-payments from customers.
The $4 billion investment in Singapore is the first of a phased expansion program planned by the company for the next five to 10 years, the CEO said. He did not specify a total amount.
The new Singapore fab will add capacity of 450,000 wafers per year, taking the campus’s total to 1.5 million, and the company expects to begin production in early 2023. Most of the added production will come online by end 2023.
The factory will make chips for cars and 5G technology, with long-term customer agreements already in place. It will add about 1,000 jobs in Singapore.
Mubadala-owned GlobalFoundries invests $6bn amid worldwide chip shortage
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Mubadala-owned GlobalFoundries invests $6bn amid worldwide chip shortage
- Tuesday’s expansion is in addition to the company’s previously announced plan to invest $1.4 billion in 2021 alone to expand its manufacturing capacity
Oman, India deepen economic ties with new trade, maritime deals
JEDDAH: Oman and India signed a series of agreements aimed at deepening trade, investment and maritime cooperation during Prime Minister Narendra Modi’s two-day visit to Muscat.
The deals include an executive program, a Joint Maritime Vision Document and four memorandums of understanding spanning agriculture, skills development, and innovation, as well as scientific research, and cooperation between business chambers, the Oman News Agency reported.
The agreements come as bilateral trade rose to $10.61 billion in 2024-25 from $8.95 billion a year earlier, driven by stronger energy flows and expanding non-oil commerce.
Oman is among India’s key trading partners, ranking as its 29th largest export market and 25th largest import source in 2024-25, while India was Oman’s fourth largest source of non-oil imports and third largest market for non-oil exports.
“Additionally, four MoUs were signed covering cooperation in maritime heritage and museums, scientific research, innovation, and skills development, agriculture and its related sectors and an MOU between Oman Chamber of Commerce and Industry and the Confederation of Indian Industry,” the ONA report stated.
The documents were signed on the Omani side by Foreign Minister Sayyid Badr bin Hamad Al-Busaidi, Oman’s Ambassador to India Issa bin Saleh Al-Shibani, and Oman Chamber of Commerce and Industry CEO Zakariya bin Abdullah Al-Saadi.
India was represented by External Affairs Minister S. Jaishankar, Commerce and Industry Minister Piyush Goyal, India’s Ambassador to Oman Godavarthi Venkata Srinivas, and the Confederation of Indian Industry Director General Chandrajit Banerjee.
Al-Saadi explained that the signing of the MoU with the CII aims to activate cooperation across various economic sectors.
He added that this will be carried out through various measures in the next phase, including exchanging joint trade delegations, targeting key sectors for investment, and attracting Indian investors to Oman, noting that the MoU involves organizing events and exhibitions to promote the products and services of Omani companies in the Indian market.
Banerjee stated that the MoU signed by the CII with the OCCI will contribute to expanding partnerships between Oman and India in various investment, commercial, and economic fields.
He added that there are many promising opportunities between the two sides in areas such as education, technology, industry, infrastructure, services, and tourism, expressing his aspiration for further close work with the Omani side.
