GlobalFoundries Pledges $16BN US Expansion to Avoid Trump Tariffs

Wedoany.com Report-Jun 9, GlobalFoundries, a major semiconductor manufacturer, announced a $16 billion investment to expand its production facilities in New York and Vermont, responding to potential U.S. tariff policies. The company, originally spun off from AMD in the late 2000s, aims to enhance its semiconductor manufacturing and advanced packaging capabilities to meet growing domestic demand.

The investment supports key clients, including Apple, AMD, and Qualcomm, who seek to increase U.S.-based production. Tim Breen, CEO of GlobalFoundries, stated: “At GlobalFoundries, we are proud to partner with pioneering technology leaders to manufacture their chips in the US, advancing innovation while strengthening economic and supply chain resiliency.” This move aligns with efforts to bolster U.S. manufacturing, reducing reliance on foreign supply chains.

The expansion follows similar steps by competitor TSMC, prompted by proposed tariffs on imported chips from Southeast Asia. Howard Lutnick, U.S. Secretary of Commerce, commented: “GlobalFoundries investment is a great example of the return of US manufacturing for critical semiconductors.” He emphasized the goal of securing domestic semiconductor capacity for future technological needs.

GlobalFoundries is leveraging subsidies from the CHIPS Act to support its growth, particularly at its Malta, New York facility, which focuses on advanced packaging technologies. The company finalized these plans in early January 2025, ahead of potential changes to federal funding programs. Recently, GlobalFoundries launched a new site in New York dedicated to packaging silicon-based photonics chips, a critical component for high-performance electronics.

Tim Cook, Apple’s CEO, expressed support, saying: “GlobalFoundries has supplied semiconductors for Apple products since 2010, and we’re excited to see them expand right here in the United States. These chips are an essential part of Apple products like iPhone, and they’re a powerful example of American manufacturing leadership.” Apple’s long-standing partnership with GlobalFoundries underscores the importance of reliable domestic suppliers.

Similarly, Dr. Lisa Su, AMD Chair and CEO, noted: “As a valued technology partner, we’re pleased to see GlobalFoundries deepen its commitment to US manufacturing. These efforts are critical to building a secure and resilient semiconductor supply chain in the US to support the next wave of innovation in our industry.” AMD’s collaboration with GlobalFoundries highlights the strategic need for a robust U.S.-based semiconductor ecosystem.

The expansion is expected to strengthen the U.S. semiconductor industry, supporting both economic growth and technological innovation. By increasing production capacity, GlobalFoundries aims to meet rising demand for chips used in smartphones, computers, and other advanced technologies, while enhancing supply chain stability for its partners.