Lead photo: GlobalFoundries’ F8 semiconductor fabrication facility in Malta, New York. (GlobalFoundries photo)

GlobalFoundries announced plans to invest $16 billion in its New York and Vermont operations to strengthen the company’s domestic semiconductor manufacturing.

GF called the investment a move to meet AI-driven demand for next-gen semiconductors optimized for power efficiency and high-bandwidth performance across datacenters, communications and AI devices.

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The company added that it is working with leading tech firms — including Apple, SpaceX, AMD, Qualcomm, NXP and GM — that are focused on reshoring semiconductor manufacturing to the U.S. and diversifying global supply chains.

GF’s investment builds on its $13 billion U.S. expansion, which includes facility upgrades in New York and Vermont and the launch of a silicon photonics packaging center. With an added $3 billion for R&D in packaging, silicon photonics and GaN technologies, GF’s total $16 billion plan aims to boost U.S. semiconductor leadership and drive innovation in AI, aerospace, automotive and high-performance communications.

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“The AI revolution is driving strong, durable demand for GF’s technologies that enable tomorrow’s datacenters – including GF’s leading silicon photonics, as well as GaN for power applications,” GlobalFoundries CEO Tim Breen said in a June 4 news release. “Meanwhile at the edge, GF’s proprietary FDX technology is uniquely positioned to support AI functionality with low power consumption. With all these technologies and more manufactured right here in the U.S., GF is proud to play its part in accelerating America’s semiconductor leadership.”