GlobalFoundries Plans To Invest $16B To Expand US Chip Manufacturing

GlobalFoundries (GFS) announced on Wednesday that it plans to invest $16 billion to expand its semiconductor manufacturing and advanced packaging capabilities across its facilities in New York and Vermont. 

Shares of the company surged over 5% at the opening bell on Wednesday.

GlobalFoundries manufactures essential semiconductors and has a global manufacturing footprint spanning the U.S., Europe, and Asia.

The biggest U.S.-based provider of made-to-order chips said that its decision to expand domestic manufacturing follows “explosive growth in artificial intelligence,” which is accelerating demand for next-generation semiconductors designed for power efficiency and high-bandwidth performance.

The company will invest over $13 billion to expand and modernize its New York and Vermont facilities, and has committed $3 billion to advanced research and development initiatives focused on packaging innovation, silicon photonics, and next-generation GaN technologies.

CEO Tim Breen said the AI revolution is driving demand for technologies that enable future datacenters, including the firm’s silicon photonics, as well as GaN for power applications.

The firm highlighted that it is collaborating with companies like Apple, SpaceX, AMD, Qualcomm, NXP, and General Motors, “that are committed to re-shoring semiconductor production to the U.S. and diversifying their global supply chains.”

GM President Mark Reuss said GlobalFoundries’ investment supports the company’s work to secure a reliable, U.S.-based chip supply, which is essential for delivering the safety, infotainment, and features our customers expect.

Meanwhile, Apple CEO Tim Cook highlighted that GlobalFoundries has supplied semiconductors for Apple products since 2010. “These chips are an essential part of Apple products like iPhone, and they’re a powerful example of American manufacturing leadership,” he said.

According to a Bloomberg report, GlobalFoundries had previously been conservative in its investment approach, spending approximately $1.4 billion on new plants and equipment annually over the last five years.

GlobalFoundries shares declined over 13% in 2025 and 23% in the past 12 months.

Also See: Brookfield Commits $10B To Sweden’s AI Expansion: Retail Sees No Reason To Cheer

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