US-based chipmaker GlobalFoundries is preparing a major expansion of its wafer fabrication facility in Dresden, Germany, which is currently the largest such plant in Europe. Citing a report from Handelsblatt, German media outlets Heise.de and n-tv say GlobalFoundries aims to invest EUR1.1 billion (approx. US$1.26 billion) over the next several years to nearly double the fab's production capacity.
The Dresden site currently features 60,000 square meters of cleanroom space and employs around 3,200 people. Annual production stands between 800,000 and 850,000 wafers, but GlobalFoundries is targeting an increase to 1.5 million wafers per year. This jump in output will require expanding the facility, and the company has reportedly already begun procuring essential equipment for the upgrade.
The expansion is expected to be supported by significant government funding under the European semiconductor initiative. Although the final subsidy amount has not been disclosed, the German federal government is anticipated to contribute several hundred million euros. Reports indicate that early approval for the project has already been granted, signaling strong political backing for the move.
While GlobalFoundries has confirmed its expansion plans, the German Federal Ministry for Economic Affairs has yet to comment on the development.
Dresden has become a strategic center for semiconductor manufacturing in Europe. Alongside GlobalFoundries, Infineon Technologies is also expanding its operations in the region with multi-billion-euro projects. In addition, Taiwan Semiconductor Manufacturing Company (TSMC) is partnering with Bosch, Infineon, and NXP through the European Semiconductor Manufacturing Company (ESMC) joint venture to construct a new wafer fab in the city.
GlobalFoundries' expansion reflects growing efforts to strengthen Europe's semiconductor supply chain and reduce dependency on imports amid rising global demand for chips.
Article edited by Jack Wu
