GlobalFoundries Announces $16 Billion U.S. Investment to Reshore Essential Chip Manufacturing and Accelerate AI Growth

Published: 2025-06-04 10:21:42 ET GFS

Published on 06/04/2025 at 10:21

GlobalFoundries working with the Trump Administration and with support from leading technology companies aiming to onshore critical components of their supply chain, announced plans to invest $16 billion to expand its semiconductor manufacturing and advanced packaging capabilities across its facilities in New York and Vermont. GF's investment is a strategic response to the explosive growth in artificial intelligence, which is accelerating demand for next-generation semiconductorors designed for power efficiency and high-bandwidth performance across datacenters, communications infrastructure and AI-enabled devices. 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. 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 $13 billion to expand and modernize its New York 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. GF is committing an additional $3 billion, which includes advanced research and development initiatives focused on packaging innovation, silicon photonics and next-generation GaN technologies.

In aggregate, these investments represent a $16 billion plan to strengthen U.S. semiconductor leadership and accelerate innovation in AI, aerospace, automotive and high-performance communications.