GlobalFoundries plans to allocate $13 billion to expand existing plants in New York and Vermont, as well as allocate another $3 billion to research in advanced packaging and other technologies in the United States, the company said in a statement.
GlobalFoundries is another company publicly pledging billions to boost U.S. electronics manufacturing — a claim President Donald Trump has touted as proof that his policies are working. The chipmaker said it is making the investment with the approval of customers including Apple Inc., Qualcomm Inc. and General Motors Co.
New CEO Tim Brin said the company is not providing a detailed breakdown of when the money will be spent and will remain flexible to match supply with demand. The focus on the U.S. is “a recognition that there is unmet demand today,” he said in an interview.
According to Brin, chip customers are looking to expand local production and want to reduce dependence on suppliers whose production is concentrated in one place.
Globalfoundries, based in Malta, New York, makes so-called core chips for semiconductor and electronics manufacturers. Such components don’t require advanced manufacturing but perform vital tasks like managing power and data flow inside devices.
Source: Bloomberg