Globalfoundries aims to generate more than US$3.5 billion in revenues in 2010, COO Song-Hwee Chia remarked at a company event held in Taipei on October 13. The target will allow the newcomer to trail closely behind United Microelectronics Corporation (UMC).

Market watchers have estimated UMC's 2010 revenues at NT$121 billion (US$3.92 billion). UMC was ranked by IC Insights as the world's second-largest IC foundry in terms of sales in 2009, following first-ranked Taiwan Semiconductor Manufacturing Company (TSMC).

Globalfoundries expects to see its fourth-quarter 2010 sales grow by a single-digit percentage rate on quarter, Chia said. Strong demand from the wireless communications sector will help offset the negative impact of weak PC demand in the fourth quarter, according to Chia.

Chia revealed that so far in 2010, Globalfoundries has spent US$2.7 billion in capex. The foundry originally set its full-year capex at US$2.5-2.7 billion.

Globalfoundries plans to expand monthly capacity at Fab 7 in Singapore to 50,000 12-inch-equivalent wafers in mid-2011 from 42,000 at present, Chia indicated. Capacity at Fab 1 in Germany will be boosted to 45,000 12-inch-equivalent wafers a month around the end of 2011 and reach 80,000 units in 2012, compared to the current level of 30,000 units, Chia said.

Globalfoundries' new Fab 8, which is on track to come online in 2013, will initially target an annual capacity of 60,000 wafers, Chia added.

Globalfoundries' total installed capacity is expected to reach 400,000 12-inch-equivalent wafers per quarter at the end of 2012, compared to the 150,000 units reached in the first quarter of 2010, according to Chia.

In addition, Chia indicated Globalfoundries currently has no plans to build another chip plant in China, though the market is "attractive" to the company. In the first half of 2010, the Asia-Pacific region contributed 19-20% to Globalfoundries' total sales.

Globalfoundries COO Song-Hwee Chia
Photo: Terry Ku, Digitimes, October 2010