GlobalFoundries Plans Bumper Spend in 2011

AMD's fabrication spin-off, GlobalFoundries, is betting heavily on the future of semiconductor production being outsourced by 'fabless' chip makers. So much so, in fact, that it's planning to spend $5.7 billion on upgrading its facilities this year alone.

The planned expenditure, which is double what the company spent in 2010, was reported to Bloomberg by GlobalFoundries' chief financial officer Robert Krakauer during an interview.

Krakauer claimed that the figure is 'based on customer programs and requests, [and not] speculative.' According to Krakauer, the money will be used to upgrade the company's fabrication facility in Dresden, build an additional facility in New York to begin production in 2012, and lay the groundwork for a new fab in Abu Dhabi.

The latter is likely to be at the behest of the nation's government, which runs the investment arm (ATIC) that holds the majority of shares in the company.

With rival chip fabrication specialist TSMC reporting that its own capital expenditure this year is likely to exceed the $5.9 billion it spent last year, 2011 looks set to be a good year for businesses supplying resources and equipment to semiconductor fabrication firms.

Do you think AMD made the right decision to spin off its fabrication facilities, or does the rapid growth of GlobalFoundries prove that AMD could have made a fortune by hanging on to its facilities? Share your thoughts over in the forums.