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GlobalFoundries (NASDAQ:GFS) jolted investors Tuesday by announcing a 1.1 billion euros expansion in Dresden alongside the sudden departure of its CFO. The chipmaker expects the site to top one million wafers each year by late 2028. The project, called SPRINT, will receive backing from Germany’s federal government and the State of Saxony under the European Chips Act, with full approval expected later in 2025. Also Read: Why Is Nvidia Investing $1 Billion In Nokia’s AI Future? The move boosts Saxony’s growing status as a powerhouse for microelectronics and reinforces Europe’s push for supply chain stability. GlobalFoundries will add advanced capabilities aimed at secure, Europe-controlled semiconductor processes. German Chancellor Friedrich Merz, during an October 28 visit to the facility, praised the plan as a signal that Germany intends to shape the global chip industry’s next phase. Saxony Minister President Michael Kretschmer called the spending a strong vote of confidence in Silicon Saxony, noting that added capacity strengthens German and European tech independence. He also pointed to chip shortages linked to Nexperia as evidence of risky supply dependencies. Automotive And AI Demand Drives Expansion The new lines will focus on power-efficient chips, embedded security features, and wireless applications used in automotive technology, IoT devices, defense systems and critical infrastructure. Those markets are shifting quickly due to physical AI advances that require specialized semiconductor performance. “Our planned expansion in Dresden is yet another step in GF’s strategy to address these challenges head-on and deliver on our commitment to support Europe’s need for secure supply chains and differentiated technologies,” said Tim Breen, CEO of GlobalFoundries. Dr. Manfred Horstmann, who oversees European fabs for GF, said the cleanroom expansion ensures long-term access to essential chip designs, while Philipp von Hirschheydt, CEO of AUMOVIO SE, said the investment supports the continent’s automotive future. GlobalFoundries has already invested more than 10 billion euros into the Dresden plant since 2009. The company recently joined Germany’s “Made for Germany” initiative, a coalition of firms pledging long-term industrial commitments to the region. CFO Resigns In a separate release, GlobalFoundries said its Chief Financial Officer, John Hollister, has stepped down for personal reasons, effective immediately. Senior Vice President Sam Franklin will serve as interim CFO while the company searches for a permanent successor. According to Benzinga Pro, GFS stock has decreased over 13% in the past year. Investors can gain exposure to the stock via First Trust NASDAQ-100-Technology Sector Index Fund (NASDAQ:QTEC). Price Action: GFS stock was trading lower by 1.93% to $34.74 at last check Tuesday. Read Next: What’s Going On With Sysco Corporation Stock Today? Photo by JHVEPhoto via Shutterstock
