GlobalFoundries commits $16B to support AI chip production
Major GlobalFoundries expansion targets AI and defence applications
#USA #semiconductors - Mubadala-backed semiconductor manufacturer GlobalFoundries has unveiled a $16 billion investment programme to expand its domestic chip production capabilities across New York and Vermont facilities. The expansion is part of a strategy to reshore semiconductor production to the U.S. and diversifying their global supply chains, whilst capitalising on the surge in demand for AI-enabling chips and power-efficient technologies. The company is collaborating with major technology companies such as Apple, SpaceX, AMD, Qualcomm Technologies, Inc., NXP and GM to support production of U.S.-made chips.
SO WHAT? - The Global Foundries plan represents one of the largest single investment commitment in US semiconductor manufacturing capacity since the Biden administration's 2022 CHIPS Act, which authorised roughly $280 billion in new funding for the semiconductor sector. The company’s investment supports AMD, Apple and Qualcomm as demand for advanced processors soars. The move also supports the expansion of domestica chip manufacturing, further to President Trump’s call to bring critical technology manufacture back to the USA. The move also
Here are some key details of the planned investment:
GlobalFoundries will invest $16 billion across its existing New York and Vermont facilities, building upon $13 billion in previously announced expansion plans to modernise domestic semiconductor production capabilities.
The investment targets AI-driven demand for advanced semiconductors, focusing on the company's proprietary 22FDX technology for low-power AI applications and silicon photonics for high-bandwidth datacenter requirements.
Major technology partners including Apple, SpaceX, AMD, Qualcomm Technologies, Inc., NXP and GM are committed to sourcing US-manufactured chips through this expanded production capacity.
GlobalFoundries operates the first US-based facility dedicated to silicon photonics packaging through its recently launched New York Advanced Packaging and Photonics Center.
The expansion includes $3 billion specifically allocated to advanced research and development initiatives targeting packaging innovation, silicon photonics, and next-generation gallium nitride (GaN) power technologies.
GlobalFoundries has served as a strategic semiconductor supplier since 2008, originally founded through a partnership between AMD and Abu Dhabi's Advanced Technology Investment Company (no integrated within Mubadala).
The company's 22FDX and silicon photonics capabilities are already in production at New York facilities, with advanced GaN power solutions under development in Vermont.
Trump administration officials have positioned this investment as central to America's semiconductor independence strategy, with Commerce Secretary Howard Lutnick recently highlighting national security implications.
ZOOM OUT - GlobalFoundries was established in 2008 through a partnership between semiconductor company AMD and Abu Dhabi's Advanced Technology Investment Company (now integrated into Abu Dhabi sovereign wealth fund Mubadala), which invested $2.1 billion. AMD fully divested its ownership in 2012, transforming from shareholder to customer, whilst Mubadala now controls 81% of the $21 billion market capitalisation company. Now the world's third-largest semiconductor foundry by revenue, GlobalFoundries specialises in manufacturing integrated circuits for smart mobile devices, automotive, aerospace and defence, consumer IoT, datacentres and communications infrastructure. San Diego-based AI, Edge and wireless chip manufacturer Qualcomm serving as its largest customer through significant 5G chip supply agreements.
[Written and edited with the assistance of AI]