Qualcomm pledges to hike spending to $4.2 billion on GlobalFoundaries chip collaboration

Qualcomm Technologies has pledged to spend an additional $4.2 billion on semiconductor chips manufactured at a GlobalFoundries plant in the US by the end of 2028, increasing the total purchase commitment to $7.4 billion.

Chips for 5G transceivers, Wi-Fi, automobiles and the Internet of Things (IoT) are the subject of the company's new $3.2 billion contract. Qualcomm said it has secured wafer supplies and promises to expand GlobalFoundries' New York facility's capacity.

GlobalFoundries spokesman Erica McGill says semiconductor demand is skyrocketing. McGill said the company is responding to this expansion by signing long-term agreements with existing and new customers and expanding worldwide capacity in conjunction with federal and local governments.


Qualcomm SVP and chief supply chain and operations officer Roawen Chen said the company's ongoing collaboration with GlobalFoundries enables us to develop the next generation of wireless innovation.

GlobalFoundries developed Qualcomm's high-performance chips for years.

Qualcomm became one of GlobalFoundries' first long-term customers in 2021, "covering multiple geographies and technologies". The extension comes less than two weeks after the US Congress enacted the $280 billion CHIPS and Science Act to enhance semiconductor manufacturing capacity.

The amount of $52.7 billion will be dedicated to semiconductor R&D, manufacturing, and workforce development. In a statement, the White House stated that President Joe Biden would sign the bill on August 9.