GlobalFoundries to Invest $8 Billion in Dresden Plant, HB Says

GlobalFoundries Inc. plans to invest $8 billion to double capacity at its chipmaking plant in Dresden, Germany, newspaper Handelsblatt reported.

(Bloomberg) — GlobalFoundries Inc. plans to invest $8 billion to double capacity at its chipmaking plant in Dresden, Germany, newspaper Handelsblatt reported.

The chipmaker is seeking the same level of government support as its rival Taiwan Semiconductor Manufacturing Co. will get for a planned plant in the city, Chief Executive Officer Thomas Caulfield told the paper on the sidelines of a customer event in Munich.

TSMC approved the construction of a €10 billion ($10.5 billion) facility this summer, and the German government is expected to provide as much as €5 billion in subsidies for the fab, Bloomberg News has reported. Governments around the world are competing for new chip factories in an effort to secure more control over the manufacturing of components critical to global supply chains.

Chancellor Olaf Scholz’s ruling coalition has also agreed to provide €10 billion in aid for a new Intel Corp. plant in Magdeburg in a push to shore up the country’s tech sector and secure supplies.

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