On June 4, 2025 (local time), GlobalFoundries (GF), one of the largest U.S.-based semiconductor manufacturers, announced a major $16 billion investment to expand its chip manufacturing and advanced packaging capabilities across its New York and Vermont facilities. The company described the move as a strategic response to the explosive growth of artificial intelligence (AI), which is fueling demand for next-generation chips with high bandwidth and energy efficiency for data centers, communications infrastructure, and AI-enabled devices.

The plan includes $13 billion for expanding and modernizing existing fabs and an additional $3 billion to fund R&D in advanced packaging, silicon photonics, and next-generation GaN (gallium nitride) technologies. The investment builds on GF's previously announced U.S. expansion and includes the establishment of the nation's first dedicated silicon photonics packaging facility.

"AI is driving strong, sustained demand for GF's technologies—whether it's our silicon photonics powering tomorrow's data centers or our proprietary FDX platform enabling low-power AI at the edge," said CEO Tim Breen. "With these technologies made in the U.S., we're proud to help accelerate America's semiconductor leadership."

GF is partnering with tech giants including Apple, SpaceX, AMD, Qualcomm, NXP Semiconductors, and General Motors. These companies support the onshoring of chip production to enhance supply chain security and reduce reliance on overseas manufacturing.

Commerce Secretary Howard Lutnick praised the initiative as "a great example of the return of U.S. semiconductor manufacturing." He added that President Trump has made domestic chip production a core policy objective, with GF's expansion helping to secure long-term foundry capacity and technical capabilities within the U.S.

GF's chips are critical components in many devices, responsible for power control and data flow rather than cutting-edge processing. The company, majority-owned by Abu Dhabi's government, has historically been more conservative with capital spending—investing around $1.4 billion per year on average. This new $16 billion commitment marks a major shift in strategy, aimed at capturing high-value niches such as silicon photonics and GaN-based power chips amid surging AI demand.

"Today's announcement is the direct result of President Trump's leadership in restoring high-paying manufacturing jobs and securing domestic supply chains," said GF Executive Chairman Dr. Thomas Caulfield.

Leading customers also weighed in:

 ● Apple CEO Tim Cook noted that GF has supplied chips for Apple products since 2010 and welcomed the company's expanded U.S. presence.

 ● SpaceX President Gwynne Shotwell highlighted the importance of GF's chips to Starlink and advanced satellite functionality.

 ● AMD CEO Lisa Su emphasized the critical role GF plays in building a secure and resilient U.S. chip supply chain.

 ● Qualcomm CEO Cristiano Amon underscored GF's role in supporting energy-efficient computing and connectivity.

 ● NXP CEO Kurt Sievers called the partnership a strong step toward scalable, U.S.-based semiconductor production.

 ● GM President Mark Reuss noted that reliable domestic chip supply is vital for the future of vehicles.

As AI adoption drives demand for power-efficient, high-performance chips, GF's investment positions the company—and the U.S.—to play a central role in the future of global semiconductor manufacturing.