Answer
$(y^2+4)(y+2)(y-2)$
Work Step by Step
Using $a^2-b^2=(a+b)(a-b)$ or the factoring of the difference of two squares, then,
\begin{array}{l}
y^4-16
\\=
(y^2+4)(y^2-4)
\\=
(y^2+4)(y+2)(y-2)
.\end{array}
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