GlobalFoundries has unveiled plans to invest $16 billion to expand its New York and Vermont facilities, aiming to enhance its semiconductor manufacturing and advanced packaging capabilities.

Meeting Semiconductor and AI Technology Needs

The semiconductor manufacturer said Wednesday the investment, with backing from leading technology companies, is meant to reinforce domestic semiconductor production and accelerate the development of artificial intelligence-powered technologies.

GF’s planned expansion of its facilities aims to address the rising demand for advanced power-efficient and high-bandwidth semiconductors in data centers, communications infrastructure and AI-enabled devices. The company will collaborate with AMD, Apple, GM, NXP, Qualcomm Technologies and SpaceX to boost the onshore production of U.S.-made chips, particularly those critical to their supply chain.

The rapid advancement of AI in cloud and edge computing is pushing the development of sophisticated technology platforms and 3D heterogeneous integration capabilities, contributing to the ability to meet growing demands for power efficiency, bandwidth density and performance. GF intends to use its 22FDX and silicon photonics technologies to meet these demands in production in its New York facility. The company will also utilize its advanced development of differentiated GaN-based power capabilities in Vermont.

“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,” said Tim Breen, CEO of GlobalFoundries. “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,” Breen continued.