HomeNewsThe shortage of chips continues! The production capacity of American wafer foundry has been sold out in 2023.

The shortage of chips continues! The production capacity of American wafer foundry has been sold out in 2023.

Thomas Caulfield, chief executive of GlobalFoundries, said that since August last year, the company's capacity had been insufficient, with capacity utilization exceeding 100%, and all capacity would be sold out by the end of 2023, stressing that GE Core would pursue supply rather than demand over the next five to 10 years.

The situation facing the wafer foundry is how to convince investors that the company is in a growing trend of chip demand, and that that demand will not disappear after the supply problems caused by the epidemic are alleviated. The company still has room for profit growth.
At the same time, whether GE core can improve its profitability to gain investor support after spending billions of dollars on capital expenditure.
GlobalFoundries, formerly known as AMD's chip manufacturing division, was spun off in 2009 and is now Mubadala Investment Co, the Abu Dhabi sovereign investment fund, according to public sources.

All, headquartered in the United States.

At present, it is the fourth largest chip foundry in the world after TSMC, Samsung Electronics and United Power.
AMD is one of its main customers.

Due to underinvestment in the market in the past, such chips are facing the most serious shortage.

For me, ,GlobalFoundries is pleased to have larger companies serve the single-digit nano-process market, and we will do our best in differentiation technology. "

Caulfield made it clear that it will focus on mature process chip manufacturing in the future, because the wafer foundry manufacturer found that this year continues to haunt the entire industry chip shortage, the most shortage is not advanced process chips, but mature node process chips such as power management IC, display IC, network IC, and so on.

Caulfield said that in 2018, the company made a major strategic decision to stop developing advanced chip manufacturing processes invested by contract manufacturers such as TSMC and Samsung, and focus on relatively mature but still critical processes, which made the development of the core different.
The business model of contract manufacturers has low profit margins and faces high labor, equipment and raw material costs.

In its prospectus, ,GlobalFoundries said its gross margin in the first half of 2021 was close to 11 per cent.