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.<\/p>\n
The announcement follows an expected closed-door meeting between the heads of GlobalFoundaries, Applied Materials, automakers and U.S. government officials.<\/p>\n
Qualcomm’s decision to buy more chips from GlobalFoundries builds on an earlier $3.2 billion deal between the two companies.<\/p>\n
The partnership will ensure the production of chips for use in 5G transceivers, Wi-Fi, automotive and Internet of Things (IoT) connectivity.<\/p>\n
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.<\/p>\n
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.<\/p>\n