US-based semiconductor manufacturer GlobalFoundries has announced a $16bn investment to enhance domestic semiconductor production.

This investment will expand the company’s manufacturing and advanced packaging capabilities across its facilities in New York and Vermont.

The investment builds upon GlobalFoundries’ existing US expansion plans, which include more than $13bn to expand and modernise its New York and Vermont facilities.

Additionally, the company has announced funding for its newly launched New York Advanced Packaging and Photonics Centre, the first US-based facility dedicated to silicon photonics packaging.

GlobalFoundries is committing an additional $3bn to advanced research and development initiatives.

These initiatives focus on packaging innovation, silicon photonics, and next-generation GaN technologies.

The company is collaborating with major technology firms such as Apple, SpaceX, AMD, Qualcomm Technologies, NXP, and GM.

These companies will aid GlobalFoundries in reshoring semiconductor production to the US and diversifying their global supply chains.

GlobalFoundries CEO Tim Breen said: “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. 

“The AI revolution is driving strong, durable demand for GF’s technologies that enable tomorrow’s datacentres – 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 US, GF is proud to play its part in accelerating America’s semiconductor leadership.”

In February 2024, the US awarded $1.5bn to GlobalFoundries to expand its semiconductor production as the country looks to boost its domestic chip manufacturing.