Globalfoundries celebrates expansion of Dresden chip plant

Microchip manufacturer Globalfoundries (GF) has celebrated the topping-out ceremony for the expansion of its plant in Dresden. The company intends to develop and manufacture chips for what are known as Physical AI applications at the facility. These new production capabilities will serve sectors including the automotive industry, aerospace, and defense.

Physical AI refers to AI-powered robots that take over production processes. For sectors with particularly high security requirements, such as critical infrastructure, GF will also offer processes and data flows that operate exclusively within Europe using the new capacities.

The investment for the expansion project, named "Sprint," totals 1.1 billion euros. Of this amount, 495 million euros are in the form of funding from the European Chips Act. Company CEO Tim Breen emphasized at the ceremony that Europe's industrial base relies on chips that are both available and trustworthy, manufactured close to the customers who urgently need them.

The Dresden site currently employs 3,000 people. By the end of 2028, the annual production capacity is planned to increase to over one million 300mm wafers, up from the current figure of approximately 950,000. This expansion further strengthens Dresden's position as a major semiconductor hub, "Silicon Saxony," alongside companies like Infineon and the upcoming TSMC.