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2021-06-22

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Chipmaker GlobalFoundries plans $6 billion expansion in Singapore, U.S., Germany

SINGAPORE (Reuters) - Chipmaker GlobalFoundries said on Tuesday it will spend $6 billion to expand c

Chipmaker GlobalFoundries plans $6 billion expansion in Singapore, U.S., Germany

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The unlisted company's Singapore operations contribute about a third of its revenue.\n\"I think the next five to eight years, we're going to be chasing supply not demand as an industry,\" GlobalFoundries CEO Thomas Caulfield told a media briefing. He added that the company was prioritising automotive customers.\nTuesday's expansion is in addition to the company's previously announced plan to invest $1.4 billion in 2021 alone to expand its manufacturing capacity.\nThe chip shortage, which began in earnest in late December, was caused in part by automakers miscalculating demand for semiconductors in the pandemic. It was aggravated by electronics manufacturers placing more chip orders as work-from-home practices fuelled a surge in sales of computers and other devices.\nLarge chipmakers including Intel Corp have warned that the shortage will last well into next year. 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Chipmaker GlobalFoundries plans $6 billion expansion in Singapore, U.S., Germany

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