Reshoring chip power with a $16 billion boost, GlobalFoundries ramps up US production to meet AI demand and shield supply chains from global risks.
Semiconductor manufacturer GlobalFoundries is investing $16 billion to scale up its production facilities in New York and Vermont. The funding will support the expansion of chip manufacturing and advanced packaging capabilities at sites in Malta and Essex Junction.
The company announced an additional $3 billion injection into the programme, which adds to the $13 billion previously committed. Key areas of development include silicon photonics, gallium nitride (GaN) technology, and packaging innovation.
This move aligns with a broader push to relocate semiconductor production to the US, following earlier policy efforts under former President Trump. It comes amid increasing industry pressure to secure reliable, domestic chip supply chains.
GlobalFoundries has been adjusting its operations to mitigate the potential impact of proposed tariffs on imported semiconductors. The company’s revised focus includes bolstering US-based output, especially to meet growing demand from the automotive sector.
Mark Reuss, President of General Motors, welcomed the move, citing the crucial role semiconductors play in future vehicle technology. He said that a stable domestic chip supply is vital to their innovation and customer experience.
Newly appointed CEO Tim Breen highlighted the rapid growth of artificial intelligence as a key driver of chip demand. According to a report by Automotive Dive, he noted that technologies like silicon photonics and 3D integration are essential for supporting data centres and AI-enabled systems.
Although GlobalFoundries received over $2 billion in federal support through the CHIPS and Science Act, the company faces uncertainty as the legislation undergoes review. Recently, a $23 million grant for a Vermont-based GaN tech hub, co-founded by the firm, was withdrawn.
Despite funding challenges, GlobalFoundries says its expansion is essential to powering next-generation technologies while reinforcing the US semiconductor supply chain in collaboration with tech leaders such as Apple, GM, and AMD.
