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pjduncan
gutiea
Globalfoundries to double capex
Dylan McGrath
1/10/2011 6:32 PM EST
SAN FRANCISCO—Foundry Globalfoundries Inc. plans to double its capital spending in 2011 to $5.4 billion, a spokesperson confirmed Monday (Jan. 10).
The news was first reported by the Bloomberg new service over the weekend.
Capex of $5.4 billion would rank Globalfoundries third among chip makers in 2011, according to a preliminary estimate of 2011 semiconductor industry capital expenditures compiled by Gartner Inc. late last year. The Gartner data projected that Globalfoundries would spend $3.2 billion on capital spending.
Spending $5.4 billion on capital expenditures in 2011 would move Globalfoundries past the world's largest chip maker, Intel Corp. Globalfoundries would still be outspend by Samsung Electronics Co. Ltd. and foundry rival Taiwan Semiconductor Manufacturing Co. (TSMC), which are projected to spend $9.2 billion and $5.7 billion, respectively, according to the Gartner data.
Globalfoundries, formed in 2009 by the spin out of Advanced Micro Devices Inc.'s manufacturing operations, has been pushing hard to catch up with TSMC and United Microelectronics Corp. Globalfoundries is currently the third largest chip foundry, with projected 2010 sales of about $3.5 billion.
Late last month, AMD reduced its stake in Globalfoundries from about 30 percent to 14 percent.
The news was first reported by the Bloomberg new service over the weekend.
Capex of $5.4 billion would rank Globalfoundries third among chip makers in 2011, according to a preliminary estimate of 2011 semiconductor industry capital expenditures compiled by Gartner Inc. late last year. The Gartner data projected that Globalfoundries would spend $3.2 billion on capital spending.
Spending $5.4 billion on capital expenditures in 2011 would move Globalfoundries past the world's largest chip maker, Intel Corp. Globalfoundries would still be outspend by Samsung Electronics Co. Ltd. and foundry rival Taiwan Semiconductor Manufacturing Co. (TSMC), which are projected to spend $9.2 billion and $5.7 billion, respectively, according to the Gartner data.
Globalfoundries, formed in 2009 by the spin out of Advanced Micro Devices Inc.'s manufacturing operations, has been pushing hard to catch up with TSMC and United Microelectronics Corp. Globalfoundries is currently the third largest chip foundry, with projected 2010 sales of about $3.5 billion.
Late last month, AMD reduced its stake in Globalfoundries from about 30 percent to 14 percent.
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gutiea
1/11/2011 5:41 PM EST
Bigger investment,not enough volume customer, much bigger losses.
How long can this march of attrition be sustained?
Can Glofo just buy TSMC for $40B and become profitable that way?
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pjduncan
1/11/2011 6:38 PM EST
"Globalfoundries would still be outspend"
outspent, please
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