Winners & Losers of GloFo's China Deal

Junko Yoshida, Chief International Correspondent
EETimes (2/13/2017 06:41 PM EST)

Globalfoundries' $10 billion Chengdu fab announcement is a reminder of China's inexorable arms race for semiconductor production capacity. Who just gained from the deal? Who's losing ground as the fab tsunami sweeps over China?

Globalfoundries’ announcement last week that it intends to build a $10 billion fab in Chengdu, China, came as no surprise to the industry observers following China’s aggressive pursuit of a local soup-to-nuts semiconductor eco-system.

Bill McClean, president of market-watcher IC Insights, told my colleague Rick Merritt, “With TSMC, UMC, and SMIC expanding their foundry capacity in China, I believe that Globalfoundries believes that they need to do something as well.”

Globalfoundries’ move is a reminder of China’s inexorable arms race for semiconductor production capacity.

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