Benzinga | Sep 15, 2021 03:55PM EDT

GlobalFoundries To Ramp Up Auto Chip Production, Discloses Additional $6B Investment: Nikkei Asia

* U.S. chipmaker GlobalFoundries (GF) is on track to at least double its automotive chip output this year and will incur an additional $6 billion to expand its overall production capacity, Nikkei Asia reports.

* Out of the additional $6 billion, $4 billion will cater to its site expansion in Singapore and $1 billion each for developments in the U.S. and Germany.

* However, the expansion plans will materialize from 2023 as it takes time for new investments to turn into capacity and the overall lead time for silicon chips to make it into the auto manufacturers.

* GF will ship more than double the wafers into automotive versus 2020 and plans to expand that capacity in 2022, and beyond, SVP Mike Hogan said.

* Intel Corp (NASDAQ:INTC) dedicated part of its Ireland facility for auto chip production.

* Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM) plans to build a chip manufacturing facility in South Taiwan to cater to the crisis.

* Toyota Motor Corp (NYSE:TM) recently slashed its production guidance due to the crisis.

* Price Action: TSM shares traded lower by 1.18% at $121.64 on the last check Wednesday.