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Guru3D.com » News » GLOBALFOUNDRIES and GlobalWafers Partnering to Expand Semiconductor Wafer Supply

GLOBALFOUNDRIES and GlobalWafers Partnering to Expand Semiconductor Wafer Supply

by Hilbert Hagedoorn on: 06/10/2021 08:01 AM | source: | 10 comment(s)
GLOBALFOUNDRIES and GlobalWafers Partnering to Expand Semiconductor Wafer Supply

GLOBALFOUNDRIES today announced an $800 million agreement to add 300 mm silicon-on-insulator (SOI) wafer manufacturing and expand existing 200 mm SOI wafer production at GWC's MEMC facility in O'Fallon, Missouri.

The silicon wafers produced by GWC are key input materials for semiconductors and an integral part of GF's supply chain. The wafers are used in GF's multi-billion dollar manufacturing facilities, or fabs, where they are used to manufacture the computer chips that are pervasive and vital to the global economy. Today's announcement expands GF's domestic silicon wafer supply from the United States.

In particular, the 300 mm wafers made at GWC's MEMC site in Missouri will be used at GF's most advanced manufacturing facility, Fab 8 in Malta, New York, and the 200 mm wafers made at the Missouri site will be used at GF's Fab 9 in Essex Junction, Vermont. These wafers will be used to create feature-rich semiconductor solutions to meet the sharply growing demand for GF's advanced RF technologies across a range of applications including 5G smartphones, wireless connectivity, automotive radar, and aerospace.

The long-term agreement includes nearly $210 million in capital expenditures to expand GWC's MEMC facility in Missouri, and will create more than 75 new jobs. The 300 mm pilot line is on track to be completed in Q4 this year. The agreement is strengthened by $9.4 million in investments and support from the State of Missouri, as well as support from the City of O'Fallon, Ameren Missouri, Spire, and Greater St. Louis, Inc.

GF is investing $1.4 billion in 2021 alone to expand its manufacturing capacity, to meet the needs of customers and address the growing global demand for computer chips. As part of this growth, GF will require an increased supply of wafers like those made by GWC. GWC is one of the world's leading manufacturers of 200 mm SOI wafers and has a long and ongoing relationship with GF for supplying 200 mm SOI wafers. In February 2020, GWC and GF announced intentions to collaborate closely to significantly expand GWC's existing 300 mm SOI wafer manufacturing capacity. Today's announcement signals a significant step forward in that collaboration.

Today's announcement comes at a time when the United States is seeking to fortify and expand its semiconductor supply chain, which enables the $91 trillion world economy. Only 12 percent of the world's semiconductor manufacturing capacity is in the United States. Critical to increasing the number of chips manufactured in the U.S., and making U.S. chip manufacturing more globally competitive, are federal investments like those enabled by the bipartisan-supported U.S. Innovation and Competition Act and the already passed CHIPS for America Act.

"Semiconductors are critical to our national security and economic competitiveness," said U.S. Sen. Roy Blunt of Missouri, an instrumental supporter of the U.S. Innovation and Competition Act. "The supply chain of these computer chips is highly complex and largely dominated by other countries. We need to begin making more chips at home to protect U.S. industries from chip shortages like we have seen in recent months. Today's announcement is good news for semiconductor manufacturing and will create steady, good-paying, high-tech jobs for Missourians."

"As a trusted semiconductor manufacturer and supplier to the U.S. government, and the world leader in RF semiconductor technology, GF has been leading the charge to accelerate U.S. semiconductor manufacturing and boost our capacity to meet the growing global demand for chips," said GF CEO Tom Caulfield. "The kind of partnership we are announcing today with GWC is only possible thanks to Congressional leadership and the renewed national interest in growing U.S. semiconductor manufacturing capacity."

"We are proud to deepen our strategic partnership with GF, and to expand our important role in the U.S. semiconductor supply chain," said Doris Hsu, Chairman and CEO of GWC. "We thank the State of Missouri for its support. We also thank our incredible O'Fallon team, whose dedication and hard work have enabled our success and growth. We look forward to ramping up our 300 mm pilot line this year, and accelerating our build-out with GF."

"We're proud to see a Missouri business step up to address the critical semiconductor need we are seeing in countless industries all across our state and nation," said Missouri Governor Mike Parson. "MEMC's expansion will strengthen the global semiconductor supply chain, promote American manufacturing, and support good-paying jobs right here in Missouri."

"For more than six decades, we have been the home of MEMC and its manufacturing of world class silicon wafers," said O'Fallon Mayor Bill Hennessy. "O'Fallon takes pride in providing a business and family-friendly environment with a high quality of life that supports MEMC's success. We are thrilled by this new partnership between GlobalWafers and GLOBALFOUNDRIES and the positive impact it will have on our city, state and nation."

GF employs more than 7,000 people across the U.S. Over the past 12 years the company has invested $15 billion in U.S. semiconductor development, and it is doubling its planned investment in 2021 to expand global capacity and support growing demand from the U.S. government and industry customers for secure processing and connectivity applications.







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flashmozzg
Senior Member



Posts: 145
Joined: 2013-01-30

#5919504 Posted on: 06/10/2021 08:56 PM
All I can say is i'm glad AMD have left them behind.

They haven't yet: https://ir.amd.com/sec-filings/content/0000002488-21-000068/amd-20210513.htm

Maddness
Senior Member



Posts: 1936
Joined: 2014-10-24

#5919631 Posted on: 06/11/2021 09:04 AM
They haven't yet: https://ir.amd.com/sec-filings/content/0000002488-21-000068/amd-20210513.htm


They have as far as 7nm and smaller nodes are concerned. They chose not to compete as they probably would have gone under as a company. Node shrinks are expensive as hell. Global Foundries was nothing but a boat anchor around AMD. Look at how well they are doing now, I couldn't be more happier.

Venix
Senior Member



Posts: 2468
Joined: 2016-08-01

#5919881 Posted on: 06/12/2021 02:44 AM
They have as far as 7nm and smaller nodes are concerned. They chose not to compete as they probably would have gone under as a company. Node shrinks are expensive as hell. Global Foundries was nothing but a boat anchor around AMD. Look at how well they are doing now, I couldn't be more happier.


Hmm not sure if they anchored amd or amd anchored em first , they where competitive enough when they where with amd and right after but the sales of bulldozer and in general amd not able to really be competitive also reduced their income , so in return also their available fund for rnd .... Anyway i have no clue who was at fault i have no insider info just my thoughts.

H83
Senior Member



Posts: 3900
Joined: 2009-09-08

#5919965 Posted on: 06/12/2021 02:53 PM
75 new jobs sounds surprisingly low but I guess when you consider how much of the production is done by machines, it kinda makes sense.
In either case, are they still going to be on 12nm? Because if so, i don't really know how this is supposed to go anywhere. I didn't get the impression that GloFo was struggling to keep up with demand, because everyone wants what Intel, Samsung, and TSMC has to offer.

Glofo give up on the race for the best nodes 2 or 3 years because they couldn´t keep up with the hugen amounts of money necessary to produce better nodes. Now they are "happy" to supply customers who don´t need the latest and greatest.

I think that´s one of the reasons why AMD left them and went with TSMC.

They haven't yet: https://ir.amd.com/sec-filings/content/0000002488-21-000068/amd-20210513.htm

If i remember correctly, when AMD sold their fabs, they made an agreement to buy a certain amount of wafers to Glofo, no matter what, to help them ou. I think they are using them for their secondary chips. That´s why AMD is still doing business with them.

But ti think that agreement is reaching it´s end.

schmidtbag
Senior Member



Posts: 6576
Joined: 2012-11-10

#5920085 Posted on: 06/13/2021 02:41 AM
Glofo give up on the race for the best nodes 2 or 3 years because they couldn´t keep up with the hugen amounts of money necessary to produce better nodes. Now they are "happy" to supply customers who don´t need the latest and greatest.

I think that´s one of the reasons why AMD left them and went with TSMC.
Yup and I think it's good that such an option exists, because not everyone wants/needs the best tech. That being said, it really surprises me the auto industry hasn't opted for GloFo. Sure, perhaps electric cars could use every last watt they can preserve, but the others don't.
If i remember correctly, when AMD sold their fabs, they made an agreement to buy a certain amount of wafers to Glofo, no matter what, to help them ou. I think they are using them for their secondary chips. That´s why AMD is still doing business with them.
For the I/O chips and I think chipsets, I think this has worked out well for AMD. This may have affected the efficiency of their products but I doubt by any substantial margin.

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