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GlobalFoundries Abandons Chengdu Wafer Fab
By Yvonne Geng, EETimes (May 26, 2020)
SHENZHEN, China — GlobalFoundries has finally given up on its wafer fab planned in Chengdu. The company filed official notices of closure, along with documents certifying the last 74 employees will be offered severance pay.
The fab was never brought online, but GF held on to the possibility of opening it. As recently as half a year ago, when asked if GlobalFoundries remained committed to the plant, GF executive vice president of finance Tim Breen insisted that “the Chengdu factory will not be sold, this is just a market rumor.”
In 2016, GF and Chongqing municipality signed a memorandum formed a joint venture to set up a local plant. Shortly afterward, GF reported a large financial loss. The project was put on hold, and then collapsed entirely. After the project fell through, Chongqing’s neighboring city Chengdu moved in to cut a deal with GlobalFoundries in late-2016.
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