GlobalFoundries and Qualcomm doubling their existing strategic global long-term semiconductor manufacturing agreement. Securing wafer supply is important during these upredictable times. Not only the demand fulfilling but also to ensure both US based companies help each other in protecting mutual business and even rising US share of chip market.
The release by GlobalFoundries says this agreement secures wafer supply and commitments to support U.S.-based manufacturing through capacity expansion at GF’s most advanced semiconductor manufacturing facility, in Malta, New York.
With the mobile phone segment getting too crowded and saturated with lesser profit margin, Qualcomm is venturing into automotive domain in a big way due to huge prospects in that market. Shortage of chips in automotive is more severe than other markets. To ensure consistent supply of chips, semiconductor chip vendors look for reliable partners who can allot dedicated fab time for making their chips. Globalfoundries FDSOI fab is more suitable for automotive domain.
Globalfoundries says In 2021, Qualcomm Global Trading Pte. Ltd (QGT), a subsidiary of Qualcomm Technologies, was one of GF’s first customers to secure their supply with a long-term agreement covering multiple geographies and technologies where that agreement secured 22FDX capacity at GF’s Dresden facility and will now include capacity at GF’s recently announced facility in Crolles, France, making QGT an anchor customer in GF’s leading European proprietary technology. QGT has also secured capacity in GF’s market leading 8SW radio-frequency silicon-on-insulator (RFSOI) technologies for Sub 6GHz 5G front-end module (FEM) which will be primarily manufactured in GF’s Singapore facilities, where site expansion plans are well underway with full ramp expected in early 2023, adds Globalfoundries.
Today’s announcement specifically extends QGT’s U.S. based collaboration with GF in FinFET for 5G transceivers, Wi-Fi, Automotive and IoT connectivity. GF’s FinFET platforms provide a best-in-class combination of performance, power and area that are well-suited for high-end Mobile, Automotive and IoT applications, says Globalfoundries in it release.
“This is terrific news for GlobalFoundries, Qualcomm Technologies and for upstate New York. Just days after we passed my historic, bipartisan CHIPS & Science bill, we can already see the semiconductor industry reinvesting in the United States. This deal to 2028 proves what we have always known – that the industry will grow here when we are competitive with Asia and Europe. With major new federal incentives for microchip manufacturing in the U.S., I look forward to many more announcements like this to come,” said Senate Majority Leader Chuck Schumer.
“With accelerating demand for 5G, Automotive and IoT applications, a robust supply chain is critical for ensuring innovation in these areas remains uninterrupted,” said Dr. Roawen Chen, Senior Vice President and Chief Supply Chain and Operations Officer, Qualcomm Technologies, Inc. “Our continued collaboration with GF helps us to expand the next generation of wireless innovation as we move toward a world where everyone and everything can be intelligently connected.”
“GF’s global manufacturing footprint enables us to partner with our customers to meet their capacity needs, where they need it,” said Dr. Thomas Caulfield, president and CEO of GF. “Our collaboration with Qualcomm Technologies delivers differentiation and innovation in mobile and IoT spanning three continents, and this long-term agreement extension provides Qualcomm Technologies with additional U.S. based manufacturing for a more resilient supply chain.”
“Today’s announcement from our CEO Summit in Washington, D.C. secures Qualcomm Technologies as a key long-term customer through 2028 in our most advanced fab in upstate New York, which together with U.S. CHIPS and state funding, will fuel expanding GF’s U.S. manufacturing footprint. We applaud the bipartisan efforts and leadership demonstrated by Senator Schumer and the incredible support of Commerce Secretary Raimondo to bring back chip manufacturing to America,” added Dr. Caulfield.