US-based semiconductor firm GlobalFoundries, which is under the ownership of Abu Dhabi’s Mubadala Investment Company, declared on Wednesday its intention to invest $16 billion to augment semiconductor production and advanced packaging facilities in New York and Vermont.
As per a statement released by the UAE-supported firm, they are partnering with tech giants such as Apple, SpaceX, AMD, Qualcomm, NXP, and General Motors for this initiative.
“These corporations are collaborating with GlobalFoundries to facilitate their manufacturing of US-produced chips, highlighting GF’s position as a reliable provider of necessary semiconductors and a crucial factor in supply chain security,” noted the company.
GlobalFoundries attributed this investment initiative to consultations with the administration of former President Donald Trump, as well as “support from leading technology firms aiming to secure vital components of their supply chains domestically.”
Apple’s CEO, Tim Cook, expressed his approval of the investment plan, emphasizing that GlobalFoundries has been supplying the tech company with chips since 2010. He remarked, “We are thrilled to see them expand within the US, as these chips are essential for Apple products like the iPhone and showcase the strength of American manufacturing.”
Mark Reuss, President of General Motors, echoed similar sentiments, praising the investment for its potential to bolster the US supply chain. He stated, “Semiconductors are pivotal to the future of vehicles, and their significance will only increase,” adding that GlobalFoundries’ investment is vital for ensuring a reliable American chip supply, crucial for meeting safety and infotainment expectations for customers.
The announcement of this investment follows a recent event in which UAE President Sheikh Mohamed and Mr. Trump observed the launch of a new 5GW UAE-US AI Campus project in Abu Dhabi during Trump’s visit to the Emirates in May. This campus will offer five gigawatts of capacity for AI data centers, establishing a regional hub for US hyperscalers to provide low-latency services to nearly half of the population within 3,200 kilometers of the UAE.
The development of the AI campus arose after concerns from US tech companies and UAE officials over new chip export regulations introduced during the final days of former President Joe Biden’s administration. Many critics felt that these rules imposed undue restrictions on the UAE’s peaceful AI goals. However, following the announcement of the AI campus, experts have indicated that fears surrounding chip accessibility have been largely alleviated.
During a congressional hearing on Wednesday, Senator Christopher Coons raised concerns with Commerce Secretary Howard Lutnick about the potential dependency on the Middle East for computing resources stemming from the newly announced deal. Lutnick, who characterized the GlobalFoundries investment as a pivotal move towards reviving US semiconductor manufacturing, concurred that over half of the computing must occur on domestic soil.
“The agreement with the UAE stipulates that if a substantial number of chips are bought, investments in US-based data centers must be made equivalent to the number of chips procured. Therefore, this investment must possess dual relevance,” Lutnick explained during the congressional discussion.
Regarding the GlobalFoundries investment, CEO Tim Breen emphasized its significance for the United States. “With a broad array of technologies being produced right here in the US, GlobalFoundries takes pride in contributing to the acceleration of America’s semiconductor dominance.