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GlobalFoundries Plans Bumper Spend in 2011

GlobalFoundries Plans Bumper Spend in 2011

GlobalFoundries will spend $5.7 billion in 2011 upgrading its facilities and building new fabs.

AMD's fabrication spin-off, GlobalFoundries, is betting heavily on the future of semiconductor production being outsourced by 'fabless' chip makers. So much so, in fact, that it's planning to spend $5.7 billion on upgrading its facilities this year alone.

The planned expenditure, which is double what the company spent in 2010, was reported to Bloomberg by GlobalFoundries' chief financial officer Robert Krakauer during an interview.

Krakauer claimed that the figure is 'based on customer programs and requests, [and not] speculative.' According to Krakauer, the money will be used to upgrade the company's fabrication facility in Dresden, build an additional facility in New York to begin production in 2012, and lay the groundwork for a new fab in Abu Dhabi.

The latter is likely to be at the behest of the nation's government, which runs the investment arm (ATIC) that holds the majority of shares in the company.

With rival chip fabrication specialist TSMC reporting that its own capital expenditure this year is likely to exceed the $5.9 billion it spent last year, 2011 looks set to be a good year for businesses supplying resources and equipment to semiconductor fabrication firms.

Do you think AMD made the right decision to spin off its fabrication facilities, or does the rapid growth of GlobalFoundries prove that AMD could have made a fortune by hanging on to its facilities? Share your thoughts over in the forums.

7 Comments

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greigaitken 13th January 2011, 14:47 Quote
if amd held onto global foundries, it wouldnt have massive growth vause there would be no money to grow it.
If they had loads of cash then it would be good to keep it but they didnt. and still dont.
Snips 13th January 2011, 16:23 Quote
Didn't we already know this? Slow news day? or was it GF wanted some press after the TSMC news?
Cthippo 13th January 2011, 17:34 Quote
They're spending a LOT on plants that aren't even online yet. Hope it pays off.
perplekks45 14th January 2011, 08:53 Quote
If this means better yields faster they could be in for a win. AMD did the right thing to spin off GF, as greigaitken already said. AMD wouldn't have 5bn+ to spend on improving existing & new fabs.
Xir 14th January 2011, 12:50 Quote
the New York plant has been planned a long time ago...
A new plant cost's about 3.5 Billion so that's not a lot left for the other two.
Question is how much of this is going into the existing plants in Dresden, and how much is going to be buried in the middle-east sand.
fluxtatic 15th January 2011, 09:40 Quote
Quote:
Originally Posted by Xir
the New York plant has been planned a long time ago...
A new plant cost's about 3.5 Billion so that's not a lot left for the other two.

If I'm not mistaken, this doesn't count what they're already building in NY. What they're talking about for this year is an expansion to the fab already under construction there. Too bad about the Abu Dhabi fab, though. You'd think it wouldn't be cost-effective...until you take into account that these sorts of jobs are on the backs indentured servants, mostly poor Pakistani and Indian immigrants.
Xir 17th January 2011, 10:08 Quote
Hmmm,

depends on what they're going to manufacture there.
Quote:
indentured servants, mostly poor Pakistani and Indian immigrants.
Are not going to give you the quality needed.
Chartered failed at reproducing the Athlon/Opteron. Thats when the second Dresden Fab was built.
They're GF now, but I'll be darned if I know what they produce.
If Singaporians or Taiwanese can't manufacture something, "indentured servants" can't either.

Edit: Though I'm sure that given time, the Singaporians or Taiwanese will reach at least the manufacturing level of the europe/US fabs.
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