Qualcomm has agreed to buy another $4.2 billion worth of semiconductor chips from GlobalFoundries’ New York factory. According to a filing on Thursday, the move takes the company’s commitment to $7.4 billion in purchases through 2028.
The announcement follows an expected closed-door meeting between the heads of GlobalFoundaries, Applied Materials, automakers and U.S. government officials.
Qualcomm’s decision to buy more chips from GlobalFoundries builds on an earlier $3.2 billion deal between the two companies.
The partnership will ensure the production of chips for use in 5G transceivers, Wi-Fi, automotive and Internet of Things (IoT) connectivity.
Commenting on the agreement, GlobalFoundries Chief Executive Officer Thomas Caulfield said that Qualcomm is very important as a long-term customer of its New York factory. He also stated that federal and state funds will help expand the company’s manufacturing sites in the United States.
In July, the U.S. Senate passed the CHIPS Act, which will see the U.S. invest about $52 billion in government subsidies for semiconductor production, as well as paving the way for a tax credit for chip plants estimated to be worth $24 billion.
The sources for this piece include an article in Reuters.
