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Released June 05, 2025 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Semiconductor manufacturer GlobalFoundries Incorporated (Malta, New York), which has the support of the Trump administration, plans to boost its investment plan to $16 billion by adding $1 billion in capital spending at its facilities in New York and Vermont. Industrial Info is tracking active and planned projects from the company.
The capital investment will go toward expanding and modernizing a facility in each of the two states, as well as adding a packaging center in New York; an additional $3 billion will go toward funding research and development in chip 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," the company said in a June 4 press release.
Last month, GlobalFoundries reported $166 million in capital expenditures (capex) for the first quarter and reiterated it plans to spend $700 million in full-year 2025.
The company's investment comes as the company currently has provisional governmental funding pledged under the Biden-era CHIPS and Science Act, although the future of that funding remains up in the air.
GlobalFoundries did not mention CHIPS Act funding in the recent press release, and the Trump administration, as of now, has not indicated it plans to eliminate any funding under the legislation.
However, at a June 4 hearing in front of the U.S. Senate Appropriations subcommittee regarding the U.S. Department of Commerce's fiscal-year 2026 budget request, U.S. Commerce Secretary Howard Lutnick said the administration is renegotiating "overly generous" grants under the CHIPS Act.
Still, in the press release, Lutnick expressed support for GlobalFoundries' additional investment as 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."
In November, the company was awarded up to $1.5 billion in direct funding through the CHIPS Act, including funding for two projects at its semiconductor campus in Malta, New York: a proposed $11.6 billion expansion would add a 380,000-square-foot fabrication (fab) building next to the operational 950,000-square-foot fab; although Industrial Info has deemed the project as having a low probability (0-69%) of moving forward as planned with a kickoff date in August, that does not mean it will not move forward at a later date. GlobalFoundries has not announced a specific construction timeline.
A planned $575 million upgrade of the New York campus would add an advanced packaging center, serving as the first U.S.-based facility of its kind dedicated to utilizing silicon photonics--a fabricating technology that uses light-based data transmission, as opposed to what is found in traditional silicon chips. Industrial Info is tracking the project with a medium probability (70-80%) of kicking off in January 2026.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can read detailed information on the expansion and packaging projects.
Another GlobalFoundries project with pledged CHIPS Act funding is an equipment addition at its semiconductor fab in Essex Junction, Vermont, to expand high-volume manufacturing of next-generation gallium nitride (GaN) semiconductors. GaN chips, with their ability to handle high voltages and temperatures, are well-positioned to be used in 5G and 6G cellular communications for cellphones, vehicles and infrastructure such as power grids. Subscribers can click here to read more information on the project, which is expected to kick off in September.
The U.S. Department of Commerce under the Biden administration had provisionally awarded more than $33 billion of the more than $36 billion in proposed incentives under the CHIPS Act. For more information, see July 22, 2024, article - GlobalWafers' U.S. Semiconductor Wafer Manufacturing Plants Receive Government Funding.
Ongoing, pending and retaliatory tariffs are looming over the U.S. semiconductor industry, and GlobalFoundries Chief Executive Officer Tim Breen said on a first-quarter earnings conference call May 6 that the company expects "uncertainties associated with the global supply chain and end market demand dynamics to continue into the second half of 2025 ... it is important to reiterate that for the second half and into 2026, it remains to be seen what the broader environment impact is from tariffs based on consumer demand and industrial demand."
For information on how chipmakers and other manufacturers are reacting to the tariffs, see June 3, 2025, article - Survey: Trade Uncertainties Loom Over U.S. Manufacturers' Capital Investments.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The capital investment will go toward expanding and modernizing a facility in each of the two states, as well as adding a packaging center in New York; an additional $3 billion will go toward funding research and development in chip 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," the company said in a June 4 press release.
Last month, GlobalFoundries reported $166 million in capital expenditures (capex) for the first quarter and reiterated it plans to spend $700 million in full-year 2025.
The company's investment comes as the company currently has provisional governmental funding pledged under the Biden-era CHIPS and Science Act, although the future of that funding remains up in the air.
GlobalFoundries did not mention CHIPS Act funding in the recent press release, and the Trump administration, as of now, has not indicated it plans to eliminate any funding under the legislation.
However, at a June 4 hearing in front of the U.S. Senate Appropriations subcommittee regarding the U.S. Department of Commerce's fiscal-year 2026 budget request, U.S. Commerce Secretary Howard Lutnick said the administration is renegotiating "overly generous" grants under the CHIPS Act.
Still, in the press release, Lutnick expressed support for GlobalFoundries' additional investment as 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."
In November, the company was awarded up to $1.5 billion in direct funding through the CHIPS Act, including funding for two projects at its semiconductor campus in Malta, New York: a proposed $11.6 billion expansion would add a 380,000-square-foot fabrication (fab) building next to the operational 950,000-square-foot fab; although Industrial Info has deemed the project as having a low probability (0-69%) of moving forward as planned with a kickoff date in August, that does not mean it will not move forward at a later date. GlobalFoundries has not announced a specific construction timeline.
A planned $575 million upgrade of the New York campus would add an advanced packaging center, serving as the first U.S.-based facility of its kind dedicated to utilizing silicon photonics--a fabricating technology that uses light-based data transmission, as opposed to what is found in traditional silicon chips. Industrial Info is tracking the project with a medium probability (70-80%) of kicking off in January 2026.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can read detailed information on the expansion and packaging projects.
Another GlobalFoundries project with pledged CHIPS Act funding is an equipment addition at its semiconductor fab in Essex Junction, Vermont, to expand high-volume manufacturing of next-generation gallium nitride (GaN) semiconductors. GaN chips, with their ability to handle high voltages and temperatures, are well-positioned to be used in 5G and 6G cellular communications for cellphones, vehicles and infrastructure such as power grids. Subscribers can click here to read more information on the project, which is expected to kick off in September.
The U.S. Department of Commerce under the Biden administration had provisionally awarded more than $33 billion of the more than $36 billion in proposed incentives under the CHIPS Act. For more information, see July 22, 2024, article - GlobalWafers' U.S. Semiconductor Wafer Manufacturing Plants Receive Government Funding.
Ongoing, pending and retaliatory tariffs are looming over the U.S. semiconductor industry, and GlobalFoundries Chief Executive Officer Tim Breen said on a first-quarter earnings conference call May 6 that the company expects "uncertainties associated with the global supply chain and end market demand dynamics to continue into the second half of 2025 ... it is important to reiterate that for the second half and into 2026, it remains to be seen what the broader environment impact is from tariffs based on consumer demand and industrial demand."
For information on how chipmakers and other manufacturers are reacting to the tariffs, see June 3, 2025, article - Survey: Trade Uncertainties Loom Over U.S. Manufacturers' Capital Investments.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
