GlobalFoundries is making a $16 billion bet on bringing more chip manufacturing back to the U.S.
The company announced Wednesday that it will expand its semiconductor production and advanced packaging work at its New York and Vermont factories. The goal is to meet growing demand for chips that power artificial intelligence, cloud computing, electric vehicles, and communications.
GlobalFoundries works with the Trump Administration and major tech companies, including Apple, SpaceX, AMD, Qualcomm, NXP, and General Motors. These companies want to make more chips in the U.S. and reduce dependence on overseas suppliers.
“At GlobalFoundries, we are proud to partner with pioneering technology leaders to manufacture their chips in the United States, advancing innovation while strengthening economic and supply chain resiliency,” said Tim Breen, CEO of GlobalFoundries.
“GlobalFoundries investment is a great example of the return of United States manufacturing for critical semiconductors,” said U.S. Secretary of Commerce Howard Lutnick.
GlobalFoundries will build on its ongoing U.S. expansion, which already includes more than $13 billion for upgrades in New York and Vermont and a new packaging center in New York. The company is adding another $3 billion for further research and development.
The effort comes as AI drives demand for new chips that can handle more data and use less power. GlobalFoundries said its factories in New York are producing silicon photonics chips, while its Vermont site is working on gallium nitride-based power chips.
“GlobalFoundries has supplied semiconductors for Apple products since 2010, and we’re excited to see them expand right here in the United States,” said Apple CEO Tim Cook.