This is an old news release. More than a year old. Reading and re-reading as I tend to do, I often find other things In have missed in the first read. I was telling something to someone on the board the other day about our POET club at work and how we have a chart on a whiteboard with many, many lines and squiggles and showing Ajits potential value to the POET brand. Yes we speculate on many things. This includes numbers, factors, and future planning. What struck me was the last line of the news release. I have highlighted it in black block letters.Does this or is it a strong further indication of whom our foundry will be ?

So....am i reaching here ?

TAIPEI—Contract chip maker Globalfoundries Inc. will spend $4.5 billion to boost production capacity this year, anticipating a burst in orders for chips used in low-cost smartphones.

Despite its bullish outlook, plans for the company's new Abu Dhabi plant remain on hold, suggesting demand in the larger market for semiconductors remains soft.

Globalfoundries will use its capital-spending budget this year to boost capacity at existing facilities in New York and Germany, Chief Executive Ajit Manocha said in an interview Wednesday.

"Our capital spending for 2014-15 will be much higher than this year," Mr. Manocha added, because the company's manufacturing technology has been tapped for many customers' designs. In 2012, capital spending totaled $3.8 billion.

The company, which is owned by Abu Dhabi-funded Advanced Technology Investment Co., expects double-digit revenue growth this year, as it produces more chips to power smartphones and tablets that are selling briskly in China and the U.S., Mr. Manocha said.

Globalfoundries doesn't disclose revenue figures, but research company Gartner estimates the company's revenue last year at $4.20 billion, up 17% from $3.58 billion in 2011.

The rise of smartphones and tablets has boosted demand for smaller and more-powerful chips, which help make devices sleeker and more energy efficient. Chip makers like Globalfoundries are migrating to finer process technology—measured in ever-decreasing nanometers—to meet this demand.

"We definitely see low-cost smartphones gaining ground in China and emerging markets. We are also gaining market share in China," said Mr. Manocha.

He said Chinese mobile-chip design company Fuzhou Rockchip Electronics Co. has engaged the company to manufacture tablet chips using 28-nanometer technology.

The Silicon Valley-headquartered company, which sprang from Advanced Micro Devices Inc. 's manufacturing operations and later combined with Singapore-based Chartered Semiconductor Manufacturing Ltd., employs about 13,000 people globally and has manufacturing facilities in Singapore, Dresden, Germany and Saratoga County, New York.

Last year, it overtook Taiwan's United Microelectronics Corp. to become the world's second-largest contract chip maker by revenue, after Taiwan Semiconductor Manufacturing Co. It has more than 150 customers, including AMD, Broadcom Corp. , Qualcomm Inc. and STMicroelectronics NV.

To continue expanding its market share, Globalfoundries will invest in advanced production technology where it has seen strong demand, said Mr. Manocha. He said the company plans to start mass production using the more advanced 20-nanometer technology later this year and tri-gate 14-nanometer technology in early 2015.

Globalfoundries will focus on maximizing output from existing plants first, Mr. Manocha said.

"We want to achieve optimal scale in New York and Germany first to tap the growth in mobile devices. When to break ground on Abu Dhabi would depend on market conditions and business demand," he said. The company plans to double its production capacity in New York to 60,000 wafers per month in the next 18 months.

Research company IDC predicts the semiconductor industry's revenue will increase by 3.5% this year after shrinking 2.2% to $295 billion in 2012. Bright spots for the semiconductor market include smartphones, tablets, set-top boxes and automotive electronics, which IDC expects will continue to drive growth over the coming years.

Earlier this year, Globalfoundries acquired a manufacturing facility from Taiwanese chip maker ProMos Technology Co. in Hsinchu, Taiwan, for an undisclosed sum. Mr. Manocha said the company is moving the manufacturing tools it acquired from ProMos to its plant in Singapore.

Globalfoundries is open to acquisition opportunities, but isn't actively seeking deals, Mr. Manocha said.

Write to Lorraine Luk at lorraine.luk@dowjones.com