GlobalFoundries Announces $16B U.S. Investment to Reshore Essential Chip Manufacturing and Accelerate AI Growth
- Substantial $16 billion investment demonstrates strong commitment to U.S. manufacturing expansion
- Strategic partnerships with major tech giants including Apple, SpaceX, AMD, Qualcomm, NXP, and GM
- Company well-positioned for AI growth with specialized technologies like 22FDX and silicon photonics
- First U.S.-based facility dedicated to silicon photonics packaging
- $3 billion allocated for advanced R&D initiatives
- Large capital expenditure may impact short-term financial flexibility
- Significant execution risk in implementing multi-billion dollar expansion
- Heavy dependence on AI market growth and demand sustainability
Insights
GlobalFoundries' $16B U.S. investment strengthens its position in AI chip manufacturing while securing critical domestic semiconductor production.
GlobalFoundries'
The investment's focus on silicon photonics, GaN power solutions, and their proprietary 22FDX technology demonstrates a calculated specialization strategy. Silicon photonics is especially critical for high-bandwidth AI applications, enabling dramatically faster chip-to-chip communication in data centers while reducing power consumption. Meanwhile, GaN technology addresses the massive power requirements of AI infrastructure, where efficiency improvements translate directly to operational cost savings.
The backing from tech giants including Apple, SpaceX, AMD, Qualcomm, NXP, and GM is particularly significant. This customer commitment reduces investment risk while validating GF's specialized technology roadmap. These partnerships essentially provide demand guarantees that strengthen GF's position against larger competitors.
From a competitive standpoint, this positions GlobalFoundries to capture high-margin specialized manufacturing that complements rather than directly challenges TSMC's dominance. By focusing on differentiated technologies tailored for specific AI applications both in data centers and edge devices, GF is carving out defensible market segments while aligning with national priorities for semiconductor manufacturing independence.
Backed by leading tech giants, the investment reinforces domestic semiconductor production and U.S.-based innovation in AI-enabling and power efficient technologies
MALTA, N.Y., June 04, 2025 (GLOBE NEWSWIRE) -- GlobalFoundries (Nasdaq: GFS) (GF), working with the Trump Administration and with support from leading technology companies aiming to onshore critical components of their supply chain, today announced plans to invest
GF is collaborating with major technology companies such as Apple, SpaceX, AMD, Qualcomm Technologies, Inc., NXP and GM, that are committed to reshoring semiconductor production to the U.S. and diversifying their global supply chains. These companies partner with GF to support their production of U.S.-made chips, underscoring GF’s role as a trusted supplier of essential semiconductors and a key enabler of supply chain security.
“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. “The AI revolution is driving strong, durable demand for GF’s technologies that enable tomorrow’s datacenters – including GF’s leading silicon photonics, as well as GaN for power applications. Meanwhile at the edge, GF’s proprietary FDX technology is uniquely positioned to support AI functionality with low power consumption. With all these technologies and more manufactured right here in the U.S., GF is proud to play its part in accelerating America’s semiconductor leadership.”
“GlobalFoundries investment is a great example of the return of United States manufacturing for critical semiconductors,” said U.S. Secretary of Commerce, Howard Lutnick. “President Trump has made it a fundamental objective to bring semiconductor manufacturing home to America. Our partnership with GlobalFoundries will secure U.S. semiconductor foundry capacity and technology capabilities for future generations.”
The rapid rise of AI in both the cloud and at the edge is driving the adoption of new technology platforms and 3D heterogeneous integration technologies. These advanced solutions are essential to meet the exponentially growing requirements for power efficiency, bandwidth density and performance. GF is uniquely positioned to lead in this space, with its 22FDX® and silicon photonics capabilities in production in New York and advanced development of differentiated GaN-based power solutions in Vermont.
GF’s investment builds upon the company’s existing U.S. expansion plans, including more than
“Today’s announcement 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,” said Dr. Thomas Caulfield, Executive Chairman of GlobalFoundries. “We look forward to continuing to work with the U.S. government to help create the conditions for industry and government to work together and drive meaningful, long-term impact.”
“GlobalFoundries has supplied semiconductors for Apple products since 2010 and we’re excited to see them expand right here in the United States. These chips are an essential part of Apple products like iPhone, and they’re a powerful example of American manufacturing leadership.”
Tim Cook, Apple’s CEO
“Advanced semiconductors are critical to the advanced satellite capabilities which SpaceX has been pioneering for over two decades. We are excited by the expansion of GlobalFoundries’ manufacturing base right here in the U.S., which is core to Starlink’s growth and our commitment to manufacturing in the U.S., as well as our mission to deliver high-speed internet access to millions of people around the world.”
Gwynne Shotwell, president and COO at SpaceX
“As a valued technology partner, we’re pleased to see GlobalFoundries deepen its commitment to U.S. manufacturing. These efforts are critical to building a secure and resilient semiconductor supply chain in the U.S. to support the next wave of innovation in our industry.”
Dr. Lisa Su, AMD Chair and CEO
“As a strategic supplier of Qualcomm, GlobalFoundries shares our vision for strengthening U.S. chip production capacity. This commitment from GlobalFoundries will help secure a resilient semiconductor supply chain to support the next wave of U.S. technology innovation, especially in areas vital to enabling power efficient computing, connectivity, and edge intelligence.”
Cristiano Amon, president and CEO of Qualcomm Incorporated
“Deepening our partnership with GlobalFoundries aligns with NXP’s hybrid manufacturing strategy, where we work with leading foundry partners to better serve our customers’ strategic technology, capacity and resilience needs. This collaboration allows us to scale efficiently, expand production in the U.S. and continue delivering for our customers. It's a strong step forward in building a resilient, high-performing semiconductor supply chain in the United States.”
Kurt Sievers, chief executive officer of NXP Semiconductors
“Semiconductors are critical to the future of vehicles, and their importance will only grow. GlobalFoundries’ investment supports our work to secure a reliable, U.S.-based chip supply—essential for delivering the safety, infotainment and features our customers expect.”
Mark Reuss, president of General Motors
About GF
GlobalFoundries (GF) is a leading manufacturer of essential semiconductors the world relies on to live, work and connect. We innovate and partner with customers to deliver more power-efficient, high-performance products for automotive, smart mobile devices, internet of things, communications infrastructure and other high-growth markets. With our global manufacturing footprint spanning the U.S., Europe, and Asia, GF is a trusted and reliable source for customers around the world. Every day, our talented global team delivers results with an unyielding focus on security, longevity and sustainability. For more information, visit www.gf.com.
©GlobalFoundries Inc., GF, GlobalFoundries, the GF logos and other GF marks are trademarks of GlobalFoundries Inc. or its subsidiaries. All other trademarks are the property of their respective owners.
Forward-looking Information
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Media Contact:
Erica McGill
erica.mcgill@gf.com
FAQ
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