News: Microelectronics
30 June 2025
US-based GlobalFoundries investing extra $3bn for R&D on silicon photonics, advanced packaging and GaN
GlobalFoundries of Malta, NY, (GF, the only US-based pure-play foundry with a global manufacturing footprint including facilities in the USA, Europe and Singapore) plans to invest another $3bn in its expansion of semiconductor manufacturing and advanced packaging capabilities across its facilities in New York and Vermont.
This brings the total to $16bn, after it announced last November that it was investing $13bn over the next 10-plus years across its two US sites, aided by $1.5bn in direct funding through the US CHIPS and Science Act (proposed in February 2024 and confirmed in November) plus more than $550m in support from the New York State Green CHIPS Program, as well as funding and support from Vermont, GF ecosystem partners and key strategic customers, and other incentives.
The investments support three projects:
- Expansion of GF’s existing fabrication plant in Malta, NY, by adding critical technologies already in production at GF’s Singapore and Germany facilities, to enable a secure and reliable supply of domestically manufactured essential chips for the US auto industry.
- Modernization and upgrading of GF’s existing fab in Essex Junction, Vermont, to expand production capacity and create a facility capable of high-volume manufacturing of gallium nitride on silicon (GaN-on-Si) semiconductors on 200mm-diameter wafers, for use in electric vehicles, data centers, IoT, smartphones and other critical applications.
- In alignment with market conditions and customer demand, construction of a new fab on GF’s campus in Malta, NY (leveraging the site’s existing infrastructure and ecosystem, enabling rapid and efficient construction), in order to meet expected demand for US-made essential chips across a broad range of markets and applications including automotive, artificial intelligence (AI) in the data center and at the edge, as well as aerospace & defense.
Combined, these projects are expected to create nearly 1000 direct manufacturing jobs and more than 9000 construction jobs. The two New York-based projects are expected to triple the existing capacity of GF’s Malta campus, in alignment with expected market requirements and customer demand.
GF says that its investment is a strategic response to the explosive growth in AI, which is accelerating demand for next-generation semiconductors designed for power efficiency and high-bandwidth performance across data centers, 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 USA and diversifying their global supply chains”. These companies are partnering with GF to support their production of US-made chips, underscoring GF’s role as a trusted supplier of essential semiconductors and a key enabler of supply chain security, the firm adds.
“The AI revolution is driving strong, durable demand for GF’s technologies that enable tomorrow’s data centers – including GF’s leading silicon photonics, as well as GaN for power applications,” says GlobalFoundries’ CEO Tim Breen. “Meanwhile at the edge, GF’s proprietary FDX technology is uniquely positioned to support AI functionality with low power consumption,” he adds.
“GlobalFoundries investment is a great example of the return of United States manufacturing for critical semiconductors,” comments US Secretary of Commerce Howard Lutnick. “President Trump has made it a fundamental objective to bring semiconductor manufacturing home to America. Our partnership with GlobalFoundries will secure US 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 solutions are essential to meet the exponentially growing requirements for power efficiency, bandwidth density and performance. GF reckons that it is uniquely positioned to lead in this space, with its 22FDX and silicon photonics capabilities in production in New York and development of differentiated GaN-based power solutions in Vermont.
GF’s investment builds on its existing US expansion plans, including more than $13bn 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 US-based facility of its kind dedicated to silicon photonics packaging. The additional $3bn includes advanced R&D initiatives focused on packaging innovation, silicon photonics and next-generation GaN technologies. The total $16bn plan aims to accelerate innovation in AI, aerospace, automotive and high-performance communications.
“GlobalFoundries has supplied semiconductors for Apple products since 2010 and we’re excited to see them expand right here in the United States,” comments Apple’s CEO Tim Cook. “These chips are an essential part of Apple products like iPhone,” he adds.
“Advanced semiconductors are critical to the advanced satellite capabilities which SpaceX has been pioneering for over two decades,” says SpaceX’s president & COO Gwynne Shotwell. GlobalFoundries’ expansion of its manufacturing base in the USA is “core to Starlink’s growth and our commitment to manufacturing in the US, as well as our mission to deliver high-speed internet access to millions of people around the world,” she adds.
“As a strategic supplier of Qualcomm, GlobalFoundries shares our vision for strengthening US chip production capacity,” notes Qualcomm’s president & CEO Cristiano Amon. “This commitment from GlobalFoundries will help secure a resilient semiconductor supply chain to support the next wave of US technology innovation, especially in areas vital to enabling power-efficient computing, connectivity, and edge intelligence,” he adds.
“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,” notes NXP’s CEO Kurt Sievers. “This collaboration allows us to scale efficiently, expand production in the US 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,” he adds.
“Semiconductors are critical to the future of vehicles, and their importance will only grow,” says GM’s president Mark Reuss. “GlobalFoundries’ investment supports our work to secure a reliable, US-based chip supply — essential for delivering the safety, infotainment and features our customers expect.”
GlobalFoundries’ gains $9.5m more in US funding for Vermont 200mm GaN-on-Si chip production
GlobalFoundries’ $1.5bn US CHIPS Act funding confirmed by Department of Commerce
