GlobalFoundries to build $10 billion chips plant in Chengdu

California-based chip maker GlobalFoundries plans to build a $10 billion advanced semiconductor factory in Chengdu, China. The factory is to make modern microchips, memory chips and flat-panel displays.

New York Times reports that the new advanced factory is only the most recent in an array of investments by major multinationals, into China with the support of the Chinese government. In 2013 Beijing announced a major initiative to expand the country’s ability to produce microchips. New government guidelines urge Chinese electronics makers to buy chips made in China.

China’s central and provincial governments have spent billions of dollars on investments and subsidies. The government has said China will spend about $100 billion to bring chip factories and research facilities to China. The GlobalFoundries plant is being built in cooperation with the Chengdu municipal government. The enterprise is based in Santa Clara, Calif. The company has semiconductor plants across the world.

Further reading on NY Times

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