GlobalFoundries has announced that it will be investing $16B to expand US chip manufacturing

The new CEO of GlobalFoundries Inc., Tim Breen, has announced that the company will be making a $16B investment into chip manufacturing within the U.S. Apple Inc., Qualcomm Inc., and General Motors Co. have come together to back their semiconductor supplier, GlobalFoundries in its $16B investment plan. 

GlobalFoundries Inc., the largest U.S.-based producer of made-to-order semiconductor chips, has announced a $16B investment plan.

The investment is aimed at expanding the company’s domestic manufacturing capacity and advancing chip technology. The company’s investment is in line with President Donald Trump’s policy push for technological self-reliance and reshoring the semiconductor industry.

GlobalFoundries commits $16B investment to local chipmaking

In a statement released on Wednesday, GlobalFoundries revealed that $13B will go toward expanding its existing manufacturing plants in Malta, New York, and EssexJunction, Vermont.

The remaining $3B will be invested in U.S.-based research and development, which will focus on advanced packaging and next-generation chip technologies, including optical components and gallium nitride-based power chips.

“Supply security matters,” GlobalFoundries’ new CEO, Tim Breen said, emphasizing the importance of a resilient supply chain and domestic manufacturing. “Requests for more production out of US plants have increased during the last six months. There is a clear signal that customers want to reduce dependence on any single region,” he added.

Over the past five years, the company has averaged annual capital expenditures of just $1.4B which is considered a modest figure compared to the tens of billions spent by competitors such as Intel Corp. and Samsung Electronics Co.

The company’s new $16 billion plan will be put toward scaling up in response to what the company describes as an “explosive growth in artificial intelligence and digital infrastructure.”

President Trump has commended the announcement as a victory for his administration’s industrial policy.

“This is exactly what we’ve been working for—bringing critical manufacturing back to the United States,” he said during a campaign stop in Ohio.

GlobalFoundries is a niche producer in the semiconductor chip market

GlobalFoundries’ chips perform essential roles in data centers, communications equipment, automotive electronics, and consumer devices.

Rather than trying to outpace Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung in the race to develop ultra-miniature transistors, GlobalFoundries specializes in “essential chips” that control power flow, manage connectivity, and facilitate sensor integration in everything from smartphones to electric vehicles.

According to Breen, this niche is becoming increasingly important as industries are looking to balance their performance with reliability and cost-efficiency. The company is also channeling its efforts into innovative technologies like combining chips with optical data links, which would improve the speed and reduce energy usage.

The company is also doubling down on gallium nitride, which is a material that is set to revolutionize power management.

The $16B investment is backed by major GlobalFoundries clients, including Apple Inc., Qualcomm Inc., and General Motors Co. These companies have expressed a strong interest in securing more local and resilient supply chains, particularly after pandemic-era shortages and geopolitical tensions have previously disrupted global chip availability.

The company has, so far, declined to provide a precise spending timeline. Breen stated in his address that flexibility is key. “We’ll scale based on demand,” he explained. This flexibility allows the company to adapt to any relevant changes in the market conditions and emerging technologies without having committed itself to fixed infrastructures or timelines.

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