Globalfoundries is planning to infuse an enormous sum of eight billion dollars into Dresden, as stated in the recent report.
Dresden, Germany is set to become a hub for the global semiconductor industry, with three major players - GlobalFoundries, TSMC, and Infineon - announcing multi-billion dollar investments in the city.
According to reports from dpa and Handelsblatt, GlobalFoundries is planning a billion-dollar investment in Dresden, joining the already announced investments by TSMC and Infineon, which total around eight billion dollars (7.6 billion euros).
The investment by GlobalFoundries is part of a broader multibillion-euro investment focused on building European production capacity. Approximately €920 million has been earmarked specifically for the semiconductor facility in Dresden as part of Germany's infrastructure plan.
The project is strategically significant as it aims to secure semiconductor supply for key European industries by producing mature and specialty chips, focusing on sectors like automotive, IoT, defense, and industrial applications. The German government provides significant financial backing via subsidies, which form part of the broader €500 billion infrastructure investment.
The investment in Dresden is closely connected to European efforts to bolster domestic semiconductor manufacturing capabilities for technological and geopolitical resilience. This investment is further backed by EU-level initiatives such as the European Chips Act to support manufacturing and innovation across the region.
GlobalFoundries, as a leading pure-play foundry with global operations and financing, including U.S. CHIPS Act incentives, is well-positioned to expand its presence in Europe. The company is seeking state support similar to that received by TSMC for the construction of a factory in Dresden.
The existing factory in Dresden is set to be significantly expanded, with capacity roughly expected to be doubled. State coverage is expected to account for approximately half the costs of the proposed Globalfoundries factory in Dresden. The company has approached the Federal Ministry of Economics and the Chancellery for discussions.
GlobalFoundries wants to expand the site in Dresden in partnership with customers and the German government. The investment is contingent on subsidies and favorable market conditions, and discussions between GlobalFoundries and the German government are ongoing.
The news about GlobalFoundries' investment in Dresden was reported by Handelsblatt, echoing the recent news about TSMC and Infineon's investments in the city, as reported by dpa. The expansion of the GlobalFoundries site in Dresden, if successful, will join the multi-billion dollar investments made by TSMC and Infineon in the city.
The investment by GlobalFoundries in Dresden, amounting to billions in finance, is a step towards expanding their business in the technology sector. This move is part of a broader strategy to increase production capacity in the European industry, specifically focusing on semiconductors.
With GlobalFoundries' investment, the city of Dresden is now home to three major players investing heavily in the semiconductor finance and technology sectors, transforming Dresden into a significant hub for the global semiconductor business.
