Globalfoundries is expanding its Dresden semiconductor plant for 1.1 billion euros and also wants to benefit from the current chip supply crisis.
Nov. 28, 2025, Oct. 28, 2025 –
Chip contract manufacturer Globalfoundries (GF) is providing insight into the construction work at its Dresden semiconductor plant. The manufacturer plans to invest 1.1 billion euros in the expansion, bringing total investments over the decades to a good 11 billion euros. GF expects subsidies for part of the expansion. However, it began at its own risk even before approval.
With the expansion called Sprint, GF is increasing its production capacity in Dresden from the current approximately 950,000 exposed wafers per year to 1.1 million. The expansion is expected to reach its full capacity by the end of 2028. The expanded production could start up as early as 2027.
Chancellor Friedrich Merz traveled to Dresden at the invitation of his CDU colleague and Saxon Prime Minister Michael Kretschmer. The discussion there also includes the assurance that GF is to receive "significant" funding as part of the EU Chips Act. Only the EU Commission still needs to approve. The officials are not yet revealing how high the funding share could be.
Meanwhile, GF is seizing the opportunity: GF can also manufacture components that are currently scarce due to the Nexperia blockade. The Dutch government has taken control of the local chip manufacturer under an emergency law. The Chinese parent company Wingtech subsequently stopped deliveries from its Chinese packaging plants to Europe. Since the chips are only packaged in these Chinese plants, Europe is left without usable Nexperia components. This affects, among others, the automotive industry.