GlobalFoundries (GFS-US), the largest specialty chip manufacturer in the United States, announced on Wednesday (October 4) its plan to invest up to $16 billion to expand production and R&D within the U.S. This move reflects the surge in demand for artificial intelligence (AI) and supply chain security considerations, emphasizing continued collaboration with the Trump administration to push for the growth of the U.S. semiconductor industry.

According to the latest statement from GlobalFoundries, the company plans to allocate $13 billion to expand its existing factories in New York and Vermont, with an additional $3 billion earmarked for R&D in advanced packaging and other emerging technologies in the United States. CEO Tim Breen stated that specific spending timelines were not provided, and adjustments will be made based on market supply and demand to meet customer requirements.

Breen noted that customers are seeking more local production to reduce dependence on specific regional suppliers, stating that “supply security is essential.” In particular, demand for domestic production among U.S. customers has noticeably increased over the past six months. He emphasized that the AI wave has boosted the demand for high-performance, low-power chips in data centers and communication devices, which strategically responds to this expansion plan.

GlobalFoundries primarily manufactures critical chips known as “mature process” technologies. While not the most advanced in the industry, these chips are essential components for power management and data flow control, key elements in emerging markets such as AI, electric vehicles, and quantum computing.

The company intends to focus on niches such as photonic technology, gallium nitride materials, and packaging technologies, which are becoming important areas in the semiconductor industry. GlobalFoundries is headquartered in Malta, New York, and was once a chip manufacturing division of AMD (AMD-US). After merging with Chartered Semiconductor, it has become a global foundry spanning the United States, Germany, and Singapore.

Currently, the majority of its shares are held by the Abu Dhabi government. Over the past five years, GlobalFoundries has averaged capital expenditures of about $1.4 billion annually, far below the hundreds of billions spent annually by Intel (INTC-US) and Samsung. However, benefiting from growing demands in AI and automotive electronics, GlobalFoundries has decided to increase its investment efforts.

Breen mentioned that the newly added $3 billion R&D budget will be directed toward three main areas: advanced semiconductor packaging, silicon photonics technology applicable in quantum processors, and gallium nitride technology for electric vehicles and other power management applications. GlobalFoundries noted that this new initiative has received support from major clients such as Apple (AAPL-US), Qualcomm (QCOM-US), and General Motors (GM-US).

President Trump views this as a testament to the success of his industrial policies, vigorously promoting local supply chains in the United States. Although no specific implementation timeline was provided for this investment, analysts believe that as AI and geopolitical risks continue to rise, GlobalFoundries' strategic expansion will help strengthen the resilience of the U.S. semiconductor supply chain.