Globalfoundries to Spend $3 Billion-Plus on Expansion (Update1) - Bloomberg.com

Globalfoundries Inc., seeking to challenge Taiwan Semiconductor Manufacturing Co. in the made-to- order chip market, will spend more than $3 billion to boost production at its factories in New York and Germany.

The company will increase the size of a new plant in upstate New York and add a production line to existing factories in Dresden, Germany, said Chief Executive Officer Doug Grose. The investment is in addition to the $6 billion already promised by the company’s owners, he said.

Sunnyvale, California-based Globalfoundries was created last year when Advanced Micro Devices Inc. spun off its chipmaking plants into a venture with Advanced Technology Investment Co., the Abu Dhabi government’s investment arm. After taking majority control, Advanced Technology bought Singapore’s Chartered Semiconductor Manufacturing Ltd. and is merging that company with Globalfoundries, creating one of the world’s largest contract manufacturers of chips.