LONDON – Foundry chip maker Globalfoundries Inc. is planning to invest $10 billion in a next-generation wafer fab possibly next to its existing Fab 8 in upstate New York, according to local reports quoting CEO Ajit Manocha.
Manocha was speaking Thursday (Jan. 10) at the College of Nanoscale Science and Engineering at the University of Albany. Manocha said that the previously announced creation of a $2-billion R&D center next to Globalfoundries' Fab 8 in Malta, New York, will bring the company closer to investing $10 billion in a next-generation wafer fab, the reports said.
In his speech Manocha referred to the existing fab as Fab 8.1 and said that Globalfoundries (Milpitas, Calif.) is committed to New York state and would move ahead with Fab 8.2 when the company is ready, according to an Albany Times Union report.
The recently-announced $2-billion Technology Development Center (TDC) is intended to support manufacturing process node transition and R&D around interconnect and packaging for the 3-D stacking of chips, advanced mask-making and the use of extreme ultraviolet lithography. Construction is expected to start early in 2013 and be completed late in 2014. The spending will bring the total capital investment at the Fab 8 campus to more than $8 billion and direct employment up to about 3,000 people.
If Manocha is planning to put Globalfoundries' next fab in New York, the idea seems to be replacing the possibility of building a fab in Abu Dhabi, the home of Globalfoundries' owner Advanced Technology Investment Company (ATIC), which is a vehicle of an Abu Dhabi sovereign wealth fund.
A plan to build a fab in Abu Dhabi that could start operation in 2015 was put on hold late in 2011. It is also remains unclear how Globalfoundries would fund a $10 billion investment. The company has been set a goal of achieving profitability by 2015 by ATIC. Along profitability came the goal that Globalfoundries from then on would be self-sustaining and not require additional funding from its parent.
Related links and articles:
Albany Times Union article
Business Review article
Globalfoundries plans New York R&D center
Globalfoundries eyes future IPO
Globalfoundries' Abu Dhabi wafer fab postponed, says report