On October 29, U.S.-based semiconductor manufacturer GlobalFoundries (NASDAQ: GFS) announced a major expansion of its European operations, unveiling plans to invest €1.1 billion ($1.28 billion) to increase production capacity at its Dresden, Germany facility. The investment, known as Project SPRINT, will boost annual output to over one million wafers by the end of 2028, positioning the site as the largest of its kind in Europe.

According to the company, the expansion will also upgrade the facility to provide end-to-end European processes and data flows to meet stringent semiconductor security requirements. The project is expected to receive financial backing from the German federal government and the State of Saxony under the European Chips Act, with European Union approval anticipated later this year.

German Chancellor Friedrich Merz hailed the project as a crucial investment in Europe's semiconductor future, noting that Germany aims to be a key player in microelectronics to secure national prosperity and security. GlobalFoundries has invested more than €10 billion in its Dresden site since 2009.

The company's CEO Tim Breen said the expansion aligns with growing customer demand for semiconductor supply chains independent of China and Taiwan. "This investment reinforces our commitment to Europe's semiconductor ecosystem," Breen added.

The announcement came just one day after GlobalFoundries revealed a leadership change. Chief Financial Officer John Hollister has stepped down for personal reasons after serving in the role for just over a year. Sam Franklin, the company's Senior Vice President of Business Finance, Operations, and Investor Relations, has been appointed Interim CFO while a global search for a permanent replacement is underway.

The management reshuffle coincides with GlobalFoundries' aggressive global expansion. In June, the company announced a $16 billion investment to expand semiconductor manufacturing and advanced packaging capabilities at its New York and Vermont facilities. The initiative is part of a broader U.S. effort to reshore chip production and diversify global supply chains, with partners including Apple, SpaceX, AMD, Qualcomm, NXP, and General Motors.

Despite its expansion, GlobalFoundries continues to face profit margin pressures. According to Reuters, the company's adjusted gross margin has remained in the 20 to 30 percent range over the past four years, constrained by pricing challenges and competitive pressures. Analysts expect GlobalFoundries to report a 4 percent decline in quarterly revenue to $1.68 billion and an 8 percent drop in profit to $165.4 million when it announces results on November 12, based on data compiled by LSEG.

While GlobalFoundries does not produce cutting-edge AI chips like TSMC, it plays a critical role in manufacturing complementary components used in automotive, smartphone, and industrial applications — essential segments in the global semiconductor ecosystem.