globalfoundries doubles down: €110 million boost for dresden wafer fab

2025-06-10 general

Dresden, Tuesday, 10 June 2025.
globalfoundries is set to expand its dresden facility. The company secured €110 million in funding under the european chips act. This investment aims to double the fab’s production capacity. The total investment will amount to €1 billion. The expansion occurs amidst criticism of the eu chips act. Concerns revolve around transparency and effectiveness. The fab currently has 60,000 square meters of cleanroom space. It employs approximately 3,200 people. The increased production will reach 1.5 million wafers per year.

strategic collaborations and technology focus

globalfoundries is strategically aligning with key industry players [1][2]. indie semiconductor is partnering with globalfoundries to develop 77 GHz and 120 GHz radar systems-on-chips (SoC) [1][2]. These SoCs are designed for advanced driver-assistance systems (ADAS) [1][2]. globalfoundries collaborates with bosch on single-chip radar sensors using 22FDX technology [1][2]. ayar labs is also partnering with globalfoundries. The partnership aims to create optical interconnect chiplets using a monolithic photonics platform [1][2]. These collaborations underscore globalfoundries’ focus on advanced technologies for automotive and other sectors [1].

broader investment strategy

This dresden investment is part of a broader strategy [1][2]. globalfoundries is investing $3 billion in its new york and vermont facilities [1]. These facilities focus on cmos and gan chip production [1]. This follows a previous announcement of $13 billion in investments for these locations [1]. However, the u.s. government is reportedly reducing financial support for the vermont and packaging centers [1]. These moves indicate a global effort to increase manufacturing capacity, though u.s. government support is in flux [1][7].

market competition and government incentives

The expansion occurs amid increased competition in europe [1]. tsmc is also constructing a fab in dresden [1]. tsmc’s fab will utilize similar lithography techniques in collaboration with nxp semiconductors and bosch [1]. esmc, focusing on 28nm and 22nm lithography, secured €5 billion in european subsidies [1]. These investments highlight the intensifying race among semiconductor manufacturers [1][2]. Governments are providing incentives to boost local chip production [1][2].

u.s. chips act renegotiations and implications

Meanwhile, the u.s. is renegotiating chip act subsidy contracts [3][4][5][7]. The u.s. government aims to secure greater investment from subsidized companies [3][4][5][7]. u.s. commerce secretary howard lutnick stated that the trump administration is renegotiating subsidies [3][7]. lutnick suggested some subsidies might be reduced or canceled [7]. tsmc is cited as a success story, increasing its u.s. investment by $100 billion [3][7]. These renegotiations reflect a push for greater value from taxpayer funds [3][4][5][7].

analyst perspective on globalfoundries’ expansion

Analysts view globalfoundries’ dresden expansion positively. the increased capacity addresses growing demand for automotive and iot microcontrollers [1][2]. the 22nm fdx fd-soi low-power process technology is crucial for power and rf devices [1][2]. the partnerships with indie semiconductor and bosch enhance globalfoundries’ market position [1][2]. however, scrutiny of the eu chips act and potential funding uncertainties could introduce risks [1]. investors should monitor government policy changes and market competition [1][3].

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