The GlobalFoundries semiconductor expansion is a $16 billion manufacturing program based at Malta, New York and Essex Junction, Vermont. Since the plan was unveiled, the company has signed a technology licensing agreement with TSMC covering 650 volt and 80 volt gallium nitride processes for its Vermont fab, with volume production now targeted for late 2026.
Why the GlobalFoundries Semiconductor Expansion Still Matters
That momentum carried into 2026. GlobalFoundries drew roughly $375 million in fresh federal funding reported in May to widen manufacturing and add jobs. The push mirrors a broader onshoring wave, including King Yuan Electronics and its $1.4 billion US chip testing plant, as both fabrication and testing capacity edge closer to American customers.
Project Overview
- Project Name: GlobalFoundries Semiconductor Expansion
- Location: Malta, New York and Essex Junction, Vermont, United States
- Project Value: $16 billion in total, comprising more than $13 billion for facility expansion and $3 billion for research and development, per GlobalFoundries
- Client / Owner: GlobalFoundries (Nasdaq GFS)
- Key Components: A new 300mm fab plus advanced packaging and photonics work in New York, and gallium nitride production in Vermont
- Federal Support: $1.5 billion CHIPS and Science Act award, with roughly $375 million in additional federal funding reported in May 2026
- Recent Development: TSMC gallium nitride technology licensing agreement signed in November 2025, with volume production targeted for late 2026
- Jobs: Approximately 9,000 construction jobs and more than 1,100 manufacturing jobs across both sites, per the CHIPS award terms
- Strategic Impact: Strengthens domestic chip supply for AI, automotive, aerospace, and defense markets
Project Team
- Owner and Operator: GlobalFoundries
- Technology Licensing Partner: TSMC for gallium nitride processes in Vermont
- Federal Funders: U.S. Department of Commerce under the CHIPS and Science Act, and the U.S. Department of Defense Trusted Access Program Office
- State Support: New York State Green CHIPS program and the State of Vermont
- Named Customers and Partners: Apple, SpaceX, AMD, Qualcomm Technologies, NXP, and General Motors
- Research Partner: University of Vermont through the Vermont Gallium Nitride Tech Hub
Reported 5th June 2025: GlobalFoundries, a leading U.S.-based semiconductor manufacturer, has revealed a landmark $16 billion semiconductor manufacturing investment to boost domestic chip production. This strategic move will significantly expand the company’s operations in New York and Vermont. Notably, this funding builds on GlobalFoundries’ previous commitment of more than $13 billion aimed at modernizing its U.S. facilities. The new round of investment highlights the company’s continued leadership in strengthening America’s semiconductor capabilities.
Expansion of Advanced Packaging and Photonics Facilities
In addition to the factory expansions, GlobalFoundries announced funding for the newly established New York Advanced Packaging and Photonics Centre. This facility is the first of its kind in the U.S. dedicated to silicon photonics packaging, a critical technology in enabling high-speed data transmission. Moreover, the company is allocating an additional $3 billion specifically for cutting-edge research and development. These R&D efforts will focus on innovative packaging solutions, silicon photonics, and next-generation gallium nitride (GaN) technologies.
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Strong Industry Partnerships for a Resilient Supply Chain
GlobalFoundries isn’t working alone. Through strategic collaborations with tech giants like Apple, SpaceX, AMD, Qualcomm Technologies, NXP, and General Motors, the company aims to accelerate semiconductor reshoring efforts. These partnerships are key to creating a more secure and diversified supply chain. As the demand for chips surges, driven by artificial intelligence (AI), cloud computing, and edge devices, GlobalFoundries is positioning itself as a cornerstone of U.S. innovation and supply chain resiliency.
Supporting National Goals and Semiconductor Leadership
This investment comes at a pivotal time. In early 2024, the U.S. government awarded GlobalFoundries $1.5 billion in federal funding to help scale up semiconductor production. According to CEO Tim Breen, the company is proud to play its part in bolstering national capabilities. “The AI revolution is fueling sustained demand for our technologies,” Breen said, citing the importance of domestic manufacturing. With this bold investment, GlobalFoundries is not only expanding its footprint but also reinforcing America’s global leadership in semiconductor manufacturing.
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Project Overview: GlobalFoundries Semiconductor Expansion
Total Investment: $16 billion committed to expanding U.S. semiconductor production capabilities.
Facilities Involved:
New York and Vermont campuses: Upgrades and expansions to existing chip manufacturing infrastructure.
New York Advanced Packaging and Photonics Centre: First U.S.-based facility dedicated to silicon photonics packaging.
Research and Development (R&D):
$3 billion allocated to advanced R&D.
Focus areas include:
Packaging innovation
Silicon photonics
Next-generation GaN (gallium nitride) technologies
Key Partners:
Collaborations with major tech companies:
Apple
SpaceX
AMD
Qualcomm Technologies
NXP Semiconductors
General Motors
Federal Support:
$1.5 billion grant awarded by the U.S. government in February 2024 under domestic chip manufacturing incentives.
Strategic Goals:
Reshore semiconductor production to the U.S.
Enhance supply chain resiliency
Support AI, cloud computing, and edge-device technologies
Economic and Technological Impact:
Creation of high-tech jobs
Acceleration of innovation in semiconductor and photonics sectors
Strengthened U.S. leadership in global chip manufacturing
Also Read US National Semiconductor Technology Center finds home in California with first-of-its-kind facility
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