GloFo CEO criticises fab subsidies

One man’s subsidy is another man’s blow to supply chain resilience it seems, as Globalfoundries CEO Tom Caulfield criticises the $20 billion being proposed in German subsidies for fabs.

Caulfield told the FT that, if subsidies disproportionately benefit one company, then “there is a real risk of dependence on a single supplier, market foreclosure and less resilient supply chains as a consequence.”

He may be referring to the $5 billion earmarked for TSMC’s European fab if the deal gets to be approved.

Or he may be angling for a lob-out for GloFo’s fab site in Dresden.

Some may look askance at Caulfield’s comments in view of the €7.4 billion subsidy the ST-GloFo jv fab in Crolles is getting from the French government, the subsidies from New York which GloFo has had for its Malta fab and Caulfield’s enthusiastic welcome for the US Chips Act which is likely to deliver substantial subsidies for his company’s operations.

Caulfield’s comments received a caustic response from the economy minister of Saxony, Martin Dulig, who said: “There will be enough room for all providers to thrive.”