GlobalFoundries Commits $16 Billion to Boost US AI Chip Production

GlobalFoundries is investing $16 billion to expand US production and research facilities, driven by growing demand for AI technologies and supply chain security. The company will allocate $13 billion to existing plants in NY and VT and $3 billion to emerging technologies. This expansion focuses on producing essential chips for AI, electric vehicles, and quantum computing. The move is expected to bolster the US semiconductor supply chain and address rising geopolitical risks.

GlobalFoundries (GF), a leading manufacturer of essential semiconductors, has announced a significant investment of $16 billion to expand its US production and research facilities. This strategic move is driven by the growing demand for AI technologies and the need to bolster the US semiconductor supply chain, addressing rising geopolitical risks [1].

The investment will be allocated as follows: $13 billion for existing plants in New York and Vermont, and an additional $3 billion for emerging technologies. This expansion focuses on producing essential chips for AI, electric vehicles, and quantum computing, underscoring GF's commitment to innovation and security in critical technologies [1].

The company's CEO, Tim Breen, stated that the investment is a response to the explosive growth in artificial intelligence, which is accelerating demand for next-generation semiconductors designed for power efficiency and high-bandwidth performance. GF is collaborating with major technology companies such as Apple, SpaceX, AMD, Qualcomm Technologies, Inc., NXP, and GM, which are committed to reshoring semiconductor production to the US and diversifying their global supply chains [1].

The expansion includes advanced research and development initiatives focused on packaging innovation, silicon photonics, and next-generation GaN technologies. This investment builds upon GF's existing U.S. expansion plans, including more than $13 billion to expand and modernize its New York and Vermont facilities and funding for its recently launched New York Advanced Packaging and Photonics Center—the first U.S.-based facility of its kind dedicated to silicon photonics packaging [1].

The move is expected to strengthen the US semiconductor leadership and accelerate innovation in AI, aerospace, automotive, and high-performance communications. GF's investment is a direct result of President Trump's leadership and his vision to bring back high-paying manufacturing jobs and reestablish secure, domestic supply chains for critical technologies [1].

References:
[1] https://investors.gf.com/news-releases/news-release-details/globalfoundries-announces-16b-us-investment-reshore-essential