[News] GlobalFoundries Commits $16B to Strengthen U.S. Semiconductor Manufacturing

According to a report from Economic Daily News, citing Bloomberg, GlobalFoundries—the largest contract chipmaker in the U.S.—announced on June 4 that it will invest USD 16 billion to boost domestic chip production. The company is the latest to publicly commit billions of dollars toward expanding semiconductor manufacturing in the U.S, the report notes.

The company plans to allocate USD 13 billion to expand its existing facilities in New York and Vermont, while committing an additional USD 3 billion to research initiatives in the U.S. focused on advanced technologies.

The R&D investment will focus on three key areas: chip packaging, silicon photonics, and gallium nitride (GaN)—a material commonly used in electric vehicles and high-power applications like AI servers, according to Reuters.

Citing new CEO Tim Breen, the report notes that customer demand for increased production from U.S. facilities has risen over the past six months. At the same time, the company stated it will not provide a detailed spending timeline, opting instead to stay flexible in order to align output with market demand.

The chipmaker said it is making these investments with the support of key customers such as Apple, Qualcomm, and General Motors, according to Bloomberg, citing its press release.

As Bloomberg notes, the company—majority-owned by Abu Dhabi’s government—had taken a cautious investment approach, averaging just USD 1.4 billion annually over the past five years on new facilities and equipment. That’s modest compared to the tens of billions spent by industry giants like Intel and Samsung.

GlobalFoundries was previously rumored to team up with UMC in the mature node segment to counter the rise of Chinese competitors. However, the speculation was quickly dismissed, as UMC clarified that no merger is currently underway, according to Liberty Times and Economic Daily News.

TrendForce‘s latest research shows that in Q4 2024, GlobalFoundries saw a rise in wafer shipments and maintained its position as the world’s fifth-largest foundry.

Tech Companies Announce Investments in U.S. Manufacturing

GlobalFoundries isn’t alone in ramping up U.S. investments. According to a White House press release, Apple has pledged USD 500 billion, while NVIDIA plans to invest the same amount over four years to build AI infrastructure. IBM has committed USD150 billion, and TSMC has announced a USD 100 billion investment in U.S. chip production—bringing its total U.S. investment to USD 165 billion, according to its own press release.

Read more

• 4Q24 Global Top 10 Foundries Set New Revenue Record, TSMC Leads in Advanced Process Nodes, Says TrendForce
• [News] UMC Denies GlobalFoundries Merger Rumors Amid U.S. Manufacturing Push, China Competition

(Photo credit: GlobalFoundries)