Thu, Jan 12, 2012 - Page 12 News List

GlobalFoundries to spend on expansion

Bloomberg

GlobalFoundries Inc, the contract chip manufacturer that was spun off from Advanced Micro Devices Inc (AMD) in 2009, plans to spend US$3 billion on plants and equipment this year, the company’s chief executive officer Ajit Manocha said.

The company spent US$8 billion between 2010 and last year, he said in an interview at the International Consumer Electronics Show in Las Vegas on Tuesday. Most of the money will go toward finishing and equipping a factory being built in upstate New York, he said.

GlobalFoundries, which remains AMD’s main source of chip production, is working to boost its capacity and attract other customers. Manocha took over from former AMD executive Doug Grose last year and he has replaced about 20 of the company’s top 50 executives.

“The transformation wasn’t going too fast enough until I took over as CEO,” he said. “We’ve shown a great improvement.”

The company has struggled with production shortfalls at its plants in Dresden, Germany — the heart of its manufacturing when it was part of AMD. Last quarter, AMD missed a sales target after GlobalFoundries was not able to supply enough chips.

GlobalFoundries’ facilities in Singapore, which it acquired in a merger with Chartered Semiconductor Manufacturing Ltd (特許), have fared better, Manocha said.

“We have not missed any of our commitments from Singapore,” he said. “GlobalFoundries is not just Dresden.”

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