Qualcomm signs deal to buy additional chips worth $4.2 billion from GlobalFoundries

GlobalFounderies Inc (NASDAQ: GFS) on Monday said Qualcomm Inc (NASDAQ: QCOM) has agreed to buy an additional $4.2 billion worth of chips from the semiconductor contract manufacturer’s New York factory, bringing its total commitment to $7.4 billion in purchases through 2028.

In a filing with the US Securities and Exchange Commission (SEC), GlobalFounderies said the deal is for 12nm and 14 nm semiconductors to be used in 5G transceivers, Wi-Fi, automotive and Internet of Things (IoT) connectivity.

The deal expands on a prior $3.2 billion purchasing agreement between the two companies.

US chipmaker Qualcomm, which specializes in smartphone chips, was one of GlobalFoundries’ first customers to sign a long-term agreement in 2021.