Tags: global foundries | plant closing

Report: GlobalFoundries Halts Operations in China Factory

Report: GlobalFoundries Halts Operations in China Factory
(Matthias Rietschel/AP)

By    |   Wednesday, 20 May 2020 11:43 AM

U.S. semiconductor giant, GlobalFoundries, has stopped operations at a joint venture factory in China, the South China Morning Post is reporting.

The Post said the move deals a potential blow to China’s bid to have a bigger share of the global semiconductor market.

The closing of the company’s only China facility comes amid a growing tech war with the U.S., the news outlet noted.

The factory is located in a hi-tech park in the city of Chengdu. City officials had boasted three years ago that the final total investment in the plant could be $10 billion. The plant was completed in 2018.

According to the Post, the closing of the plant had little to do with the superpower rivalry. But while the plant was hailed as “a miracle” by local media, it just never really got off the ground.

A spokesperson for GlobalFoundries confirmed that the Chengdu plant had stopped operations and was offering workers an “employee optimization plan.”

“The plan is being carried out on the basis of open and transparent communications with the employees and they have been offered various options to choose from based on their personal situations,” a company statement read.

Just two years ago the company, in another statement, had noted: “China, as one of the largest and fastest growing semiconductor markets around the globe, is a high priority for GF.”

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U.S. semiconductor giant, GlobalFoundries, has stopped operations at a joint venture factory in China, the South China Morning Post is reporting.
global foundries, plant closing
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2020-43-20
Wednesday, 20 May 2020 11:43 AM
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