GlobalFoundries Commits $16 Billion To US Chip Expansion As AI Drives Demand

GlobalFoundries Inc. GFS plans to inject $16 billion into expanding its semiconductor manufacturing and packaging operations across New York and Vermont facilities.

What Happened: The company announced on Wednesday that it aims to boost domestic chipmaking.

The funding includes $13 billion for facility expansion and $3 billion for R&D. The focus is on silicon photonics, GaN power technologies, and advanced packaging.

The announcement comes after the launch of the New York Advanced Packaging and Photonics Center—the first U.S.-based facility dedicated to silicon photonics packaging.

Also Read: Taiwan Semiconductor’s Japan Chip Factory Faces Delays, While U.S. Expansion Takes Priority

Why It Matters: CEO Tim Breen said the AI boom is fueling demand for GF’s technologies. The company makes a proprietary FDX platform and silicon photonics solutions.

GlobalFoundries aims to support next-gen data centers and edge devices with energy-efficient, high-performance chips built in America.

Commerce Secretary Howard Lutnick said the move exemplifies America’s latest reshoring efforts under the Trump administration.

Industry leaders, including Apple Inc‘s AAPL Tim Cook, SpaceX‘s Gwynne Shotwell, Advanced Micro Devices Inc.‘s AMD Lisa Su, and Qualcomm‘s QCOM Cristiano Amon, voiced support, citing the importance of a reliable U.S. semiconductor supply chain.

Related ETFs: iShares Semiconductor ETF SOXX and VanEck Semiconductor ETF SMH.

Price Action: GFS shares are trading higher by 1.50% at $37.42 on the last check on Wednesday.

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