GlobalFoundries (GFS) is expanding its plant in Dresden, Germany, to meet increasing client demand for semiconductors that are not made in China or Taiwan, Bloomberg reported Tuesday, citing GlobalFoundries Chief Executive Tim Breen in an interview.

The chipmaker has earmarked $1.1 billion to boost the Dresden plant's chip production, with the first phase targeted for completion in 2028 to add 10% capacity, Bloomberg quoted Breen as saying.

GlobalFoundries has received an initial provision from the German government to start the project's buildout, but Breen said the company is still waiting to see if the expansion will be given subsidies under the EU Chips Act, according to the report.

GlobalFoundries did not immediately respond to MT Newswires' request for comment.

Shares of the company fell 1.8% in recent trading.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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