Foundry capacity glut seen in '11

Mark LaPedus, EETimes
1/11/2011 2:42 PM EST

HALF MOON BAY, Calif. - The so-called capital spending ''arms race'' in the foundry business will continue, as leading-edge vendors will boost their expenditures in 2011, according to an analyst.

But also look for a foundry capacity glut in 2011. Foundry Globalfoundries Inc. plans to double its capital spending in 2011 to $5.4 billion, a spokesperson confirmed Monday (Jan. 10). Capex of $5.4 billion would rank Globalfoundries third among chip makers in 2011.

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