Abu Dhabi-controlled Globalfoundries, the microchip giant, has its sights set on world domination as it prepares to double capital spending to $5.4 billion.
Abu Dhabi-controlled microchip giant to invest $5.4bn
Globalfoundries will double its capital spending this year to $5.4 billion (Dh19.83bn) as it makes a strong push to become the world's top microchip foundry.
The company is controlled by Advanced Technology Investment Company (ATIC), an investment firm owned by the Abu Dhabi Government, that holds an 86 per cent stake in the firm. AMD, the chipmaker's former owner, holds the remaining stake in Globalfoundries.
Globalfoundries manufacturers silicon wafers which are later cut out to build microchips that will be installed in a variety of consumers electronic goods such as smartphones, desktop computers and laptops.
Its facility in Dresden in the midst of significant capacity expansion while its New York foundry is in the initial stages of being fitted out for tooling equipment. Each semiconductor tool equipment costs about $10 million each.
"Our 2011 capital expenditure represents a significant increase in our investments and is designed to allow us to accelerate efforts in adding key near-term capacity while enabling a roadmap for sustainable long-term growth in both our 200mm and 300mm operations," said Bob Krakauer, the chief financial officer of Globalfoundries.