GF unveils semiconductor plant in Singapore

Market: Metals
13/09/23

US-based semiconductor manufacturer GlobalFoundries (GF) on 12 September officially opened its $4bn expanded semiconductor fabrication plant in Singapore, which will further boost its global manufacturing presence and enhance its supply chain resiliency.

Work on the 23,000m² plant started in 2021. It has a production capacity of 450,000 300mm wafers/yr, raising GF's production capacity in Singapore to approximately 1.5mn 300mm wafers/yr.

"We are thrilled to ramp our operations at the Singapore expansion site," said GF's president and chief executive Thomas Caulfield. "This site is instrumental in ensuring that we have the capacity our customers need as they seek to strengthen their supply chains."

"Over the last century, steel and oil were the foundational materials for industrial success. In the 21st century, silicon wafers are the new steel and oil," said Singapore's deputy prime minister Lawrence Wong who attended the plant's opening.

"[This] fab 7h will be the first wafer fab in Singapore capable of manufacturing specialty chips at 28nm...We cannot play in all areas of semiconductors. We probably will not be able to play in a high-end space either. But in specialty chips, I think we have competitive advantages and strengths and we will continue to build on them," he added.

Around 80pc of all electronic manufacturing in Singapore in 2022 was semiconductor manufacturing, according to US International Trade Administration. Singapore in 2022 accounted for about 11pc of the global semiconductor market share and manufactures 20pc of global semiconductor equipment, according to the country's Economic Development Board. Singapore under its Manufacturing 2030 vision aims to cement its position as a global hub for advanced manufacturing and raise its manufacturing value-add by 50pc by 2030.

GF's revenues during April-June were down by 7pc from a year earlier to $1.845bn but generated $146mn of free cash flow despite impacts from cyclical headwinds and continued macroeconomic uncertainty, it said. The firm during the quarter entered into a partnership with US aerospace company Lockheed Martin to produce more microelectronics used in US defence systems.

By Joseph Ho

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26/12/24

Viewpoint: Real, tariffs to hit Brazil steel imports

Sao Paulo, 26 December (Argus) — Steel importers in Brazil are likely to face a tougher market in 2025 as government measures and the Brazilian real's depreciation to the US dollar make products from abroad less attractive. Brazilian steel importers are concerned that tariff-quota and antidumping policy changes made this year by the federal and state governments could raise costs for importing cargoes in 2025, likely exacerbating the impacts of a sharply depreciated Brazilian real relative to the dollar. The concerns come as US president-elect Donald Trump is already raising global trade tensions, with specific focus on Mexico, Canada and China, that could unleash waves of dueling trade measures. After seeing strong import growth in the post-Covid-19 recovery, Brazil steel importers are fretting they may lose momentum. Brazil's steel imports year-to-date November rose by nearly 24.4pc to 5.6mn metric tonnes (t) from the same period a year earlier. They are expected to end the full year 2024 up by 24pc, according to steel association Aco Brasil, after climbing by 50pc in 2023. Apparent consumption rose by 9.6pc to 24mn t in the 11 months through November, while production increased by just 5.6pc to 31.17mn t from a year earlier. Even with a 28pc depreciationof the real to the dollar in the 12 months through 24 December, prices for dollar-denominated steel imports still have a cost advantage over domestically produced steel. But that advantage is narrowing as the real weakens, with the price difference from imports over the domestic market narrowing to just $112/t in the latest assessment for hot-rolled coils (HRC) from $172/t in mid-October . "The dollar's [appreciation to the real] is messing up imports," one market participant told Argus , saying a wider price advantage for importers was necessary to offset issues like the exchange rate risk and the shipping time. Market participants also cited rising borrowing costs in Brazil as an additional challenge for imports, as many buyers rely on financing to purchase material from abroad. Brazil's central bank on 11 December unexpectedly hiked its target interest rate by a full percentage point to 12.25pc , citing the country's uncertain fiscal situation, accelerating inflation and challenging external conditions. Importers recently expressed concerns over Santa Catarina state's decision to no longer grant tax incentives for imports of six different steel and iron products for commercialization or resale in 2025. Although the timeline for implementing the measure was postponed to July and could face changes, importers remain concerned and are monitoring any possible reviews of the decision, sources told Argus . Santa Catarina's main port, Sao Francisco do Sul, accounted for over one-third of every steel product that is imported to Brazil from January to September, according to data from the country's distributors association, INDA, published in September. On the federal front, the government is likely to announce new and renewed antidumping measures for products coming mainly from China, Brazil's largest steel supplier. Another obstacle for importers would be a possible review of the tariff system for steel imports, which was implemented in June 2024 and led to additional tariffs of up to 25pc. The measure proved mostly ineffective at curbing imports into Brazil, and the industry group Aco Brasil said it would ask for adjustments . Despite the challenges, there is still room for importers to bring material to Brazil , as the country lacks steel to supply its domestic demand, another market participant said. "Brazil will always need imports because it still lacks some key home-made products to feed its market," the participant said. By Carolina Pulice Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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China's GFEX launches polysilicon futures contracts

26/12/24

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26/12/24

China's GFEX launches polysilicon futures contracts

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Japan’s crude steel output to recover in FY2025: IEEJ

26/12/24

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26/12/24

Japan’s crude steel output to recover in FY2025: IEEJ

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Viewpoint: US tariffs, new EAFs may alter scrap flows

24/12/24

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24/12/24

Viewpoint: US tariffs, new EAFs may alter scrap flows

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Viewpoint: FeV demand may grow next year

24/12/24

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24/12/24

Viewpoint: FeV demand may grow next year

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