GlobalFoundries Plans Billion-Euro Investment to Expand Chip Manufacturing in Germany

Core Insights - GlobalFoundries plans to invest €1.1 billion to expand its manufacturing capabilities in Dresden, Germany, aiming to increase production capacity to over one million wafers per year by the end of 2028, making it the largest semiconductor manufacturing site in Europe [1][2][4] Investment and Expansion - The expansion, referred to as project SPRINT, is expected to receive support from the German federal government and the State of Saxony under the European Chips Act, with EU approval anticipated later this year [2] - This investment highlights Saxony's significance as a semiconductor manufacturing hub and aligns with Europe's strategic goal of enhancing supply chain resilience [2][4] Technological Focus - The new manufacturing capacity will concentrate on differentiated technologies, including low power, embedded secure memory, and wireless connectivity, which are crucial for sectors such as automotive, IoT, defense, and critical infrastructure [4][5] - The investment will also facilitate innovation in next-generation compute architectures and quantum technologies [4] Industry Context - Recent disruptions in the automotive sector have underscored vulnerabilities in global chip supply chains, prompting GlobalFoundries to expand its manufacturing footprint in Europe and other regions [5] - The expansion is seen as a vital step in strengthening the European automotive industry and enhancing the semiconductor ecosystem in Saxony [6][7] Commitment to Germany - GlobalFoundries has invested over €10 billion in its Dresden site since 2009, marking it as one of the largest industrial investments in Germany [6] - The company has joined the "Made for Germany" initiative, demonstrating a long-term commitment to industrial investment in the country [6]