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GlobalFoundries’ $16B Boost to U.S. Chip Production

GlobalFoundries Invests $16 Billion to Boost U.S. Chip Production

GlobalFoundries, one of the leading U.S. semiconductor manufacturers, is set to invest $16 billion in expanding its production capabilities across the country. The company has earmarked $13 billion for enhancing existing facilities in New York and Vermont and an additional $3 billion for developing new technologies. This significant investment underscores the increasing demand for localized semiconductor production.

A Calculated Move with Major Backing

With substantial support from major clients like Apple, Qualcomm, and General Motors, GlobalFoundries joins a growing list of companies committed to bolstering U.S. manufacturing infrastructure. CEO Tim Breen emphasized that these investments respond to a surge in demand for localized production, addressing a critical need to diversify supply beyond single-region dependencies.

Strategic Shift in Supply Chain Localization

In a conversation with reporters, Breen revealed that the number of orders for U.S.-made chips has surged over the past six months. He highlighted that customers are keen to reduce reliance on suppliers in specific regions, viewing local production as essential to supply chain security.

Investment Compared to Industry Peers

GlobalFoundries’ current investment significantly exceeds its previous annual average of $1.4 billion spent on capacity expansion and equipment upgrades over the last five years. Although still behind industry leaders like Intel and Samsung in spending, this move positions GlobalFoundries as a critical player in strengthening America’s semiconductor sector against potential supply chain disruptions.

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