Artificial Intelligence GlobalFoundries commits $3bn to microchip research By Valentina Pasquali June 5, 2025, 9:41 AM Reuters/Brendan McDermid GlobalFoundries previously planned to spend $13 billion to upgrade its factories in New York and Vermont GlobalFoundries backed by Mubadala Already spending $13bn for upgrade Shares down 21% since last year GlobalFoundries, the Mubadala-backed chip manufacturer, said on Wednesday it will significantly hike research spending in the US over the next few years due to “explosive” demand for artificial intelligence and the advanced semiconductors that power it. The multi-billion-dollar investment comes as the New York state-based company works with the White House and various technology peers to “onshore critical components of their supply chain,” according to a press release. US commerce secretary Howard Lutnick said in a statement that GlobalFoundries’ enhanced commitment marks a “great example” of chip manufacturing returning to the US and that it will secure domestic production and know-how “for future generations.” GlobalFoundries previously planned to spend $13 billion to upgrade its factories in New York and Vermont, according to the press release It is now adding $3 billion more to research and develop next-generation semiconductor packaging, silicon photonics and other innovations. The company did not provide a timeline for the delivery of the additional funds. “With all these technologies and more manufactured right here in the US, GF is proud to play its part in accelerating America’s semiconductor leadership,” said chief executive Tim Breen. GlobalFoundries is separately slated to put €1.1 billion ($1.26 billion) into its production facility in the German city of Dresden, with generous financial support from German state and federal authorities, local media reported also on Wednesday. Gulf FDI into US states goes well beyond usual suspects Mubadala’s US portfolio hit by GlobalFoundries slump US-driven trade war forces Mubadala to change ‘assumptions’ Abu Dhabi’s sovereign wealth fund Mubadala owns a majority 81.5 percent stake in the Nasdaq-listed chip maker, which is the world’s third largest foundry by revenue. That investment declined 14 percent, or $2.7 billion, in the first quarter of 2025 amid increasing market volatility sparked by President Donald Trump’s global trade war. It stood at $16.6 billion at the end of March. GlobalFoundries’ share price was up 2.3 percent at market close, but remains down 21.3 percent from this time last year. Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later
