Thursday, July 23rd 2020

Samsung Rumored to Make Investment in GlobalFoundries

Today we are in for an interesting rumor. According to industry sources of Coreteks, Samsung is rumored to be preparing investment in GlobalFoundries manufacturing facilities. In the latest ave of Asian foundries getting away from China and getting close to EU and US soils, Samsung is the latest one to join the list. First, let's explain the situation. The Trump administration has been pushing TSMC to drop all orders from Huawei, and TSMC did it. That way, Huawei Technologies has lost a major chip supplier which enabled the company a competitive edge. Now, the company must turn to Chinese manufacturers and it can't use any US-made product.

Given that GlobalFoundries is a company headquartered in the US (Santa Clara, California), the company is an American corporation, which has fabs in the US, as well as in Europe. It is truly a global foundry system. Samsung, a Korean semiconductor manufacturer, has been rumored to invest in GlobalFoundries Dresden fab, located in Germany. The company will help GlobalFoundries expand its power supply capacity from 63 MegaWatts to 100 MegaWatts. The proposed expansion of GlobalFoundries Dresden fab would be funded exclusively by Samsung. So why is Samsung doing this? The answer to this question is pretty simple - to get closer to western markets. Even if GlobalFoundries has foundries all over the world, it is a US company at its core. So Samsung hopes that from this investment, it can get closer to US soil and gain some new customers in the future. After all, Samsung plans to become the world's biggest semiconductor manufacturer by 2030, the position currently held by its rival TSMC. Below you can check out the expansion plan illustrated by Coreteks:
Source: Coreteks
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10 Comments on Samsung Rumored to Make Investment in GlobalFoundries

#1
TheLostSwede
I thought Globalfoundries was owned by the UAE?
Posted on Reply
#2
AleksandarK
TheLostSwede
I thought Globalfoundries was owned by the UAE?
It is owned by UAE, but the HQ is in the US, which gives it the ability to manufacture chips for the US government.
Posted on Reply
#3
TheLostSwede
AleksandarK
It is owned by UAE, but the HQ is in the US, which gives it the ability to manufacture chips for the US government.
You kind of missed out on their fabs in Singapore, although I guess it doesn't matter too much considering the angle of the article.
Posted on Reply
#4
AleksandarK
TheLostSwede
You kind of missed out on their fabs in Singapore, although I guess it doesn't matter too much considering the angle of the article.
Yeah, Fab 7 is in Singapore, but it isn't relevant much in this context.
Posted on Reply
#5
fynxer
They are probably planing a future buyout of some kind. This way Samsung will instantly expand world wide in to EU and US.

Samsung really need this to stay competitive and keep it's rival TSMC from taking all the local lucrative military and government contracts in EU and US.

GlobalFoundries is the only fast track available to expand quickly into these markets.

A big win for UAE, Samsung have really deep pockets and are used to throw big amount's of money at solving problems quickly.
Posted on Reply
#6
TheLostSwede
fynxer
They are probably planing a future buyout of some kind.

This way Samsung will instantly expand world wide in to EU and US.

Samsung really need this to stay competitive and keep it's rival TSMC from taking all the local lucrative military and government contracts in EU and US.

GlobalFoundries is the only fast track available to expand quickly into these markets.
You are aware that Samsung and GloFo has been working together for well over a decade, right? They even have interchangeable processes on some nodes.
Posted on Reply
#7
Freaky_Snuke
Fun Fact: I actually live within 8km of distance to this fab irl.
Posted on Reply
#8
Dave65
fynxer
They are probably planing a future buyout of some kind. This way Samsung will instantly expand world wide in to EU and US.

Samsung really need this to stay competitive and keep it's rival TSMC from taking all the local lucrative military and government contracts in EU and US.

GlobalFoundries is the only fast track available to expand quickly into these markets.

A big win for UAE, Samsung have really deep pockets and are used to throw big amount's of money at solving problems quickly.
TSMC is on a HUGE roll right now, Samsung has got to do something..
Posted on Reply
#9
Caring1
Freaky_Snuke
Fun Fact: I actually live within 8km of distance to this fab irl.
Wrong screen, was that meant for FB?
Posted on Reply
#10
RoutedScripter
The hype train continues! More good news for EU/US consumers, we're tired of crappy asian-english translations aren't we.

But it would be good if motherboard industry gets out of asia, that's where most of the low-level crappy translations are, in the BIOS, drivers, manuals, PCB.
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