Global Foundries Plan to Invest $16 Billion in US

The New York headquartered Global Foundries (GF), working with the US government and with support from leading technology companies aiming to onshore critical components of their supply chain, has announced last week that it will invest $16 billion to expand its semiconductor manufacturing and advanced packaging capabilities across its facilities in New York and Vermont.

The UAE’s sovereign wealth fund (SWF) Mubadala holds majority stake in GF and the investment is part of the Emirates’ plans to invest $1.3 trillion in the US in various sectors such as AI infrastructure, semiconductors, energy, and manufacturing under a 10-year bilateral investment agreement.

GF’s investment is a strategic response to the explosive growth in artificial intelligence, which is accelerating demand for next-generation semiconductors 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 are partnering with GF to support their production of the US-made chips, underscoring GF’s role as a trusted supplier of essential semiconductors and a key enabler of supply chain security.

Global Foundries CEO Tim Breen said that they were proud to partner with pioneering technology leaders to manufacture their chips in the US, advancing innovation while strengthening economic and supply chain resiliency.

He said that the AI revolution was 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.

Uniquely Positioned                       

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 US, GF is proud to play its part in accelerating America’s semiconductor leadership, he said.

Tthe US Secretary of Commerce Howard Lutnick said that the investment is a great example of the return of the US manufacturing for critical semiconductors.

He said that the US President Donald Trump has made it a fundamental objective to bring semiconductor manufacturing home to America and their partnership with GF will secure the US 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 US 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 Center is the first US-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, this investment represents a $16 billion plan to strengthen US semiconductor leadership and accelerate innovation in AI, aerospace, automotive and high-performance communications.

GF Executive Chairman Dr Thomas Caulfield said that the investment is a direct result of President Trump’s leadership and his vision to bring back high-paying manufacturing jobs and re-establish secure, domestic supply chains for critical technologies.