In addition to the US$12Bn investment it announced in 2024, GlobalFoundries plans to invest another US$4Bn in capital spending and R&D.

US-based chipmaker GlobalFoundries (GF) announced that it would increase its planned investment in US chip production from US$12Bn to US$16Bn. Of the additional US$4Bn, GF will allocate US$1Bn to capital expenditure and US$3Bn to R&D for emerging chip technologies. Funding for R&D will be divided between chip packaging technologies, silicon photonics, and gallium nitride applications.

In response to the rapid increase in demand for chips in generative AI and demand centres, GF has expanded its US operations in line with other chipmakers such as Taiwan Semiconductor Manufacturing Company (TSMC). On 20 November 2024, GF was awarded US$1.46Bn in direct funding by the Biden–Harris administration under the CHIPS and Science Act. A total of US$1.35Bn in funding has been allocated to expanding the production of 300mm current-generation and mature-node technology at the company’s Malta, New York, facility. Additionally, US$125M will be invested in modernising 200mm gallium nitride and silicon–germanium chip production at its Essex Junction, Vermont, location.

The expansion and modernisation of gallium nitride and silicon–germanium-based chips are critical for the establishment of high-end domestic processing efficiencies. Geopolitical and trade tensions have drawn attention to raw material sourcing as China accounts for 99% of global gallium metal production and around 60% of all germanium production. In addition to its dominant control of raw materials, China has also imposed a flat-out ban on gallium and germanium exports to the USA.

Alternative sources of germanium exist, such as the Red Dog mine in Alaska and the Big Hill tailings facility in the Democratic Republic of Congo. However, despite interest in gallium production outside China, few producers are yet to achieve commercial production.