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Qualcomm to invest $4.2 billion more to buy chips from GlobalFoundries

Qualcomm and Global Foundations have expanded a purchase agreement for semiconductors manufactured by the secondwhich will make Qualcomm invests 4,200 million dollars more in its purchase. The company has decided to invest more than double what was initially planned, which was 3,200 million dollars, in the purchase of chips from GlobalFoundries until 2028. The new agreement includes that the total spending on chips until said year will be 7,400 million dollars.

His signature comes after the passage last week of the US Chip and Science Act. Among other things, he ensures the supply of American-made wafers to Qualcomm, so he is undoubtedly related to this law, which seeks to increase chip manufacturing in the country. In fact, GlobalFoundries will have to expand its manufacturing capacity on US soil to meet the agreement, which will most certainly mean that the US government will provide money to promote this expansion.

The semiconductors that Qualcomm is going to buy from GlobalFoundries will be manufactured at its plant in the town of Malta (New York), in the United States, the most advanced of the company in the country. They will be models that will be intended to be integrated into 5G transceivers, WiFi, automotive and connectivity for the Internet of Things.

GlobalFoundries has been manufacturing Qualcomm Technologies’ high-performance chips for several years. In 2021, one of its subsidiaries, Qualcomm Global Trading Pte, was among the first GlobalFoundries customers to secure its supply through a long-term agreement covering multiple geographies and technologies.

For Roawen Chen, Vice President and Head of Supply Chain and Operations, Qualcomm Technologies«With demand for 5G, Internet of Things and automotive applications accelerating, a robust supply chain is critical to ensure that innovation in these areas is not interrupted. Our continued collaboration with GlobalFoundries helps us expand the next generation of wireless innovation as we move toward a world where everything and everyone can be intelligently connected.«.

Thomas Caulfield, President and CEO of GlobalFoundrieshas indicated for his part that «GlobalFoundries global manufacturing footprint» allows them to partner with their customers «to meet your capacity needs, where you need it«. In addition, he underlines that his collaboration with Qualcomm Technologies «brings differentiation and innovation in mobile and the Internet of Things on three continents, and this long-term agreement extension provides Qualcomm Technologies with additional US-based manufacturing for a more resilient supply chain«.

Cauldfield added that the ad “secures Qualcomm Technology as a key long-term customer through 2028 at our state-of-the-art factory in New York, which with the US CHIPS Act and state funding, will fuel the expansion of GlobalFoundries’ US manufacturing footprint«.

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