GlobalFoundries entrance in Essex Junction, Vermont.
Backed by leading tech giants, the investment reinforces domestic semiconductor production and U.S.-based innovation in AI-enabling and power efficient technologies
by Timothy McQuiston, Vermont Business Magazine GlobalFoundries (Nasdaq: GFS) (GF) announced June 4 plans to invest $16 billion to expand its semiconductor manufacturing and advanced packaging capabilities across its facilities in New York and Vermont. GF is thus adding $3 billion to the $13 billion it committed last year, in conjunction with $1.5 billion from the US CHIPS Act. GF stated its investment is a strategic response to the explosive growth in artificial intelligence, which is accelerating demand for next-generation semiconductors designed for power efficiency and high-bandwidth performance across datacenters, communications infrastructure and AI-enabled devices.
GF is collaborating with major technology companies such as Apple, SpaceX, AMD, Qualcomm Technologies, Inc., NXP and GM, that are committed to reshoring semiconductor production to the U.S. and diversifying their global supply chains. These companies partner with GF to support their production of U.S.-made chips, underscoring GF’s role as a trusted supplier of essential semiconductors and a key enabler of supply chain security.
GF’s investment builds upon the company’s existing U.S. expansion plans, including more that $13 billion to expand and modernize its New York and Vermont facilities and funding for its recently launched New York Advanced Packaging and Photonics Center—the first U.S.-based facility of its kind dedicated to silicon photonics packaging. GF is committing an additional $3 billion, which includes advanced research and development initiatives focused on packaging innovation, silicon photonics and next-generation GaN technologies.
In aggregate, these investments represent a $16 billion plan to strengthen U.S. semiconductor leadership and accelerate innovation in AI, aerospace, automotive and high-performance communications.
“At GlobalFoundries, we are proud to partner with pioneering technology leaders to manufacture their chips in the United States—advancing innovation while strengthening economic and supply chain resiliency,” said Tim Breen, CEO of GlobalFoundries. “The AI revolution is driving strong, durable demand for GF’s technologies that enable tomorrow’s datacenters – including GF’s leading silicon photonics, as well as GaN for power applications. Meanwhile at the edge, GF’s proprietary FDX technology is uniquely positioned to support AI functionality with low power consumption. With all these technologies and more manufactured right here in the U.S., GF is proud to play its part in accelerating America’s semiconductor leadership.”
According to Gina DeRossi, Corporate Communications representative at GlobalFoundries: "GF is planning an additional $3B in U.S. investments that include capex and R&D spending covering both New York and Vermont. The Vermont portion of that will be to support the development of GaN. At this time, we are not disclosing specific amounts out of that $3B for New York or Vermont, but I can confirm this is in addition to the nearly $130 million in planned funding (for Vermont) that was already announced."
DeRossi added that: "GF is committing $3B for advanced research and development initiatives focused on packaging innovation, silicon photonics and next-generation GaN technologies, which GF is developing at its Vermont site."
GF announced in February 2024 the US Department of Commerce’s $1.5 billion in planned direct funding for GF, with $125 million of that funding earmarked for modernizing and building out the capacity of GF’s Vermont facility.
The nearly $130 million in planned direct funding as part of the US CHIPS and Science Act and Vermont state funding that will support the modernization of GF’s longest continuously operated fab and the nation’s first and largest Trusted 200mm facility.
The Vermont plant is the first US facility capable of high-volume manufacturing of next-generation gallium nitride (GaN) semiconductors for use in electric vehicles, power grids, data centers, 5G and 6G smartphones and other critical technologies. Today, about 85% of phones have a GlobalFoundries chip in it. Around 1,800 GF employees work at the Vermont Fab.
The bipartisan CHIPS and Science Act of 2022 was signed into law by President Biden. It provided the Department of Commerce with $50 billion for a suite of programs to strengthen and revitalize the U.S. position in semiconductor research, development, and manufacturing—while also investing in American workers. CHIPS for America encompassed two offices responsible for implementing the law: The CHIPS Research and Development Office invested $11 billion into developing a robust domestic R&D ecosystem, while the CHIPS Program Office dedicated $39 billion to provide incentives for investment in facilities and equipment in the United States.
Meanwhile, a separate Vermont program was suspended in May.
The Vermont Gallium Nitride (V-GaN) Tech Hub—a consortium led by the University of Vermont (UVM) and including GlobalFoundries and the State of Vermont—was awarded $23.7 million in federal funding
in January 2025, shortly before President Trump took office. The investment from the U.S. Economic Development Administration was the largest research award in UVM history.
The US Department of Commerce under Trump said in a statement May 16, 2025, that it was suspending the program and a new application process would be offered this summer, for which UVM and other former awardees could reapply:
"In 2022, Congress created the Tech Hubs Program to strengthen U.S. economic and national security by commercializing the technologies of the future. The investments made through this program can ensure that critical industries, companies, and jobs start, grow, and remain in the United States.
"While these opportunities are exciting, all federal investment must be strategic, smart, and result in the best return for the taxpayer. Regrettably, on its way out the door, the prior Administration announced awards to six Tech Hubs, even though the funds were not yet available. Moreover, the process was rushed, opaque, and unfair- administration officials did not make prospective applicants aware of the competition and chose awardees using outdated applications submitted nearly a year earlier. A rushed process using outdated information is no way to invest taxpayer funds.
"At my direction, the Commerce Department is revamping the Tech Hubs program to prioritize national security, project quality, benefit to the taxpayer, and a fair process. The EDA will release a new notice of funding opportunity this summer with the goal of announcing selections in early 2026. To be clear, this decision is not an indictment of the work that the previously selected Tech Hubs are doing. They can compete for funding alongside all other prospective applicants. This decision is about fairness and making prudent choices with hard earned taxpayer dollars. The process will be transparent, fair, and ensure that the American taxpayers are investing in the best technological advancements to bolster the growth of critical industries in the United States," said US Commerce Secretary Howard Lutnick.
For the June 4 announcement by GF, Lutnick said: “GlobalFoundries' investment is a great example of the return of United States manufacturing for critical semiconductors. President Trump has made it a fundamental objective to bring semiconductor manufacturing home to America. Our partnership with GlobalFoundries will secure U.S. semiconductor foundry capacity and technology capabilities for future generations.”
The rapid rise of AI in both the cloud and at the edge is driving the adoption of new technology platforms and 3D heterogeneous integration technologies. These advanced solutions are essential to meet the exponentially growing requirements for power efficiency, bandwidth density and performance. GF is uniquely positioned to lead in this space, with its 22FDX® and silicon photonics capabilities in production in New York and advanced development of differentiated GaN-based power solutions in Vermont.
From left, Senator Leahy, Governor Scott, Senator Welch, Lieutenant Governor Zuckerman and GF CEO Thomas Caulfield discuss the awarding of $125 million to the GF Vermont plant in March 2024 to develop the GaN technology through the federal CHIPS Act. VermontBiz photo
“Today’s announcement is a direct result of President Trump’s leadership and his vision to bring back high-paying manufacturing jobs and reestablish secure, domestic supply chains for critical technologies,” said Dr. Thomas Caulfield, Executive Chairman of GlobalFoundries. “We look forward to continuing to work with the U.S. government to help create the conditions for industry and government to work together and drive meaningful, long-term impact.”
“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.”
A GF press release included quotes from other tech firms.
Tim Cook, Apple’s CEO
“Advanced semiconductors are critical to the advanced satellite capabilities which SpaceX has been pioneering for over two decades. We are excited by the expansion of GlobalFoundries’ manufacturing base right here in the U.S., which is core to Starlink’s growth and our commitment to manufacturing in the U.S., as well as our mission to deliver high-speed internet access to millions of people around the world.”
Gwynne Shotwell, president and COO at SpaceX
“As a strategic supplier of Qualcomm, GlobalFoundries shares our vision for strengthening U.S. chip production capacity. This commitment from GlobalFoundries will help secure a resilient semiconductor supply chain to support the next wave of U.S. technology innovation, especially in areas vital to enabling power efficient computing, connectivity, and edge intelligence.”
Cristiano Amon, president and CEO of Qualcomm Incorporated
“Deepening our partnership with GlobalFoundries aligns with NXP’s hybrid manufacturing strategy, where we work with leading foundry partners to better serve our customers’ strategic technology, capacity and resilience needs. This collaboration allows us to scale efficiently, expand production in the U.S. and continue delivering for our customers. It’s a strong step forward in building a resilient, high-performing semiconductor supply chain in the United States.”
Kurt Sievers, chief executive officer of NXP Semiconductors
“Semiconductors are critical to the future of vehicles, and their importance will only grow. GlobalFoundries’ investment supports our work to secure a reliable, U.S.-based chip supply—essential for delivering the safety, infotainment and features our customers expect.”
Mark Reuss, president of General Motors
Related stories
VermontBiz December 2024: GlobalFoundries Vermont gets another $9.5 million for GaN chips
VermontBiz March 2024: Vermont leaders join GlobalFoundries CEO to celebrate announcement of CHIPS investment in Essex Junction facility
About GF
GlobalFoundries (GF) is a leading manufacturer of essential semiconductors the world relies on to live, work and connect. We innovate and partner with customers to deliver more power-efficient, high-performance products for automotive, smart mobile devices, internet of things, communications infrastructure and other high-growth markets. With our global manufacturing footprint spanning the U.S., Europe, and Asia, GF is a trusted and reliable source for customers around the world. Every day, our talented global team delivers results with an unyielding focus on security, longevity and sustainability. For more information, visit www.gf.com.
MALTA, N.Y., June 4, 2025 – GlobalFoundries
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