GlobalFoundries CEO: EU should support chip-making efforts

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.
Written by Zack Whittaker, Contributor

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.

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