Globalfoundries to Spend Billions of Dollars on Factory in New York

Paul Lilly

One thing you can't say about Globalfoundries is that it's afraid to spend money. After being spun-off from Advanced Micro Devices (AMD) in 2009, the contract chip maker went on to spend $8 billion through 2011 and now plans to spend an additional $3 billion on fabs and related equipment, with most of the funds going towards finishing a plant in New York and filling it with equipment.

Globalfoundries CEO Ajit Manocha revealed the figures and future plans during an interview with Bloomberg at the Consumer Electronics Show in Las Vegas. He also addressed concerns with production after coming up short at its plants in Dresden, Germany.

"We have not missed any of our commitments from Singapore. Globalfoundries is not just Dresden," Manocha said.

That might be true, but it doesn't provide a whole lot of comfort to AMD, which missed its sales target last quarter after Globalfoundries came up short. However, things are improving under Manocha, who replaced former AMD executive Doug Grose as CEO and promptly replaced nearly two dozen of the company's top 50 executives.

"The transformation wasn't going too fast enough until I took over as CEO," Manocha said. "We've shown a great improvement."

Going back to its New York plant, Globalfoundries earlier this week announced an agreement to jointly manufacture advanced chips based on IBM's 32nm, Silicon-on-Insulator (SOI) technology. The new chips will feature IBM's embedded "eDRAM" technology designed to improve on-processor memory performance in about one-third the space with one-fifth the standby power of conventional SRAM (static random access memory).

Image Credit: Globalfoundries

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