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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.
“This is terrific news for GlobalFoundries, Qualcomm Technologies and for upstate New York. Just days after we passed my historic, bipartisan CHIPS & Science bill, we can already see the semiconductor industry reinvesting in the United States. This deal to 2028 proves what we have always known – that the industry will grow here when we are competitive with Asia and Europe. With major new federal incentives for microchip manufacturing in the US, I look forward to many more announcements like this to come,” Senate Majority Leader Chuck Schumer said in a press release.
The US Senate last month passed sweeping legislation to subsidize the domestic chip industry, providing about $52 billion in government subsidies for semiconductor production and an investment tax credit for chip plants estimated to be worth $24 billion.
Picture Credit: Financial Express
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