On Monday, an agreement was reached between Qualcomm and GlobalFoundries that will more than increase the size of their current long-term production contract for chips used in 5G transceivers, Wi-Fi, automotive, and Internet of Things (IoT) connectivity.
The chips will be made in GlobalFoundries’ facilities in the US, Germany, Singapore, and France under a multibillion-dollar revenue arrangement.
GlobalFoundries Signing an Agreement
By increasing capacity at GlobalFoundries’ most cutting-edge semiconductor manufacturing facility in Malta, New York, the businesses promised to boost domestic manufacturing. One of GlobalFoundries’ first clients to sign a long-term contract in 2021 that covered several regions and technologies was American chipmaker Qualcomm.
In addition to federal and state assistance, GlobalFoundries Chief Executive Thomas Caulfield stated in a statement that having Qualcomm as a long-term customer of its upstate New York factory through 2028 will help the business increase its U.S. manufacturing presence.
U.S Senate and GlobalFoundries
The U.S. Senate approved comprehensive legislation last month to support the domestic semiconductor industry. The bill includes nearly $52 billion in government subsidies for semiconductor production as well as a $24 billion investment tax credit for chip factories.
As per Senate Majority Leader Chuck Schumer, there will be many more announcements of this like in the future thanks to significant new federal incentives for semiconductor production in the United States. To strengthen its chip sector and lessen reliance on American and Asian suppliers, the European Union has recently loosened funding regulations for new semiconductor plants.
Furthermore, to take advantage of the subsidies, GlobalFoundries and Intel have announced growth plans for both continents, with GlobalFoundries collaborating with STMicroelectronics to construct a $5.7 billion semiconductor facility in France.
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