GlobalFoundries CEO: EU should support chip-making efforts

GlobalFoundries CEO: EU should support chip-making efforts

Summary: GlobalFoundries chief executive said that Asia is "rolling out the red carpet" for chip manufacturers, while Europe is ultimately losing out in much-needed investment as a result.

TOPICS: Processors, EU

Contract chip-maker GlobalFoundries chief executive Ajit Manocha said European governments should do more to encourage chip manufacturers to set-up shop in the region, rather than going to Asia where they receive large subsidies.

Speaking at an event in San Francisco, Manocha said he had previously tried to convince European policy makers to invest more in companies like his in a bid to stimulate manufacturing of chips and semiconductors in the region, reports the Reuters news agency

He said some governments offer incentives to chip makers to develop in their region, but many EU states are not taking advantage of such investments and, as a result, many are heading to Asia where they, in his worlds, "roll out the red carpet for us."

In August, Samsung threw its weight behind a U.S. plant in Austin, Texas, by renovating a chip-building facility in the region. Reports at the time said the Korean chip-maker and technology giant would invest around $3-4 billion in the plant in order to meet the increasing demand for its smartphones in the country.

Manocha also said that the Asian countries offer "lots of subsidies," and noted how New York State "does a good job," while "Europe is not playing that role properly."

Last fall, New York governor Andrew Cuomo announced plans to invest $400 million in the SUNY College for Nanoscale and Science Engineering, while Intel, IBM, GlobalFoundries, TSMC and Samsung would invest $4.4 billion in the state over the next five years to develop next-generation technologies.

However, some chip-makers remain in European territory, despite the subsidies and state-offered help from Asian regions, such as the Netherlands-based ASML, and STMicroelectronics, Europe's largest chip-maker, which has operations in France and Italy, but also has plants in Singapore.

"We will focus on what is good for the company and good for the customers, but Europe will benefit more if they play a role like the other governments play with us in other countries," Manocha added.

Topics: Processors, EU

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  • GlobalFoundries CEO: EU should support chip-making efforts

    "Contract chip-maker GlobalFoundries chief executive Ajit Manocha said European governments should do more to encourage chip manufacturers to set-up shop in the region, rather than going to Asia where they receive large subsidies."
    contrary to the common mantra that the federal government should keep a hands off approach to managing the us economy and that big government is a drag to the economy, the sad truth of the matter is that us tax dollars were, are and will always be the driving force behind the mighty us economy. without federal support, even the mighty military-industrial complex will collapse and all the forbes 500 will disappear in no time. since day one, the us govt. was doing what the chinese and asian govts. are doing now, i.e. spearhead the development of technology/market. and once that market can sustain/stand on its own, to transfer ownership to the private sector for management. but if the federal funding is severely cut as many wanted to (small government they say), the us competitive advantage will go up in smoke. and as noted in this article, the european GOVERNMENT should step up to the plate to make things happen in their region... the question now, "how can the federal government function with limited funding?" just my one cent musing...
  • Not so much

    What he says is true from a standpoint of the US and Europe being at a competitive disadvantage and if the US companies don't take the handouts, then they are at a disadvantage to Asian companies that do. A few years ago we lost a competition to build a fab in the US and it was built in Singapore instead. Singapore practically paid for the entire building and land.

    One of two things has to happen. The US matches the corporate welfare of the Asian countries or the US figures out a way to make the playing field even, competition wise.. I think the 2nd solution is better but then you get into these trade wars with other countries so it needs to be negotiated.

    As far as the government being the driving force behind innovation, no, not really. If you have more capital, you can take the risk of building a fab but saying reallocating or redistributing wealth to anyone, including the corporations or the poor is good policy is not true. That said, lower taxation that applies to all is one good way of incentivizing manufacturing in the US and makes us more competitive.
    • Disagree

      The policies that say "free market can take care of itself and government involvement is bad" supports these folk demanding our money. We've given and given and keep getting less in return, apart from more " we need to compete" claptrap while our money props up or bails them out.