In June 2025, GlobalFoundries (GF) unveiled an ambitious plan to invest $16 billion in its U.S. operations—with over $13 billion earmarked for scaling and modernizing fabrication sites in New York and Vermont, and $3 billion dedicated to research and development in advanced domains such as packaging, silicon photonics, and GaN power technologies.
This move reflects a calculated response to converging forces in the semiconductor sector: skyrocketing demand for AI-specific chips, national imperatives for supply chain sovereignty, and the technical limits of conventional scaling. GF’s announcement frames the investment as both an expansion of production capacity and a pivot toward integrated technology leadership.
A significant portion of the new funding is focused on advanced packaging and photonics, areas where chipmakers increasingly place value to overcome interconnect and bandwidth bottlenecks. GF’s strategy suggests it sees future differentiation not in raw transistor nodes, but in how chips talk to each other and external systems.
Parallel to this expansion, GF is deepening its collaborations in mixed-signal and power sectors. In August 2025, GF and Cirrus Logic announced an expanded partnership to develop next-generation BCD (Bipolar-CMOS-DMOS) process technologies domestically, alongside efforts in GaN-on-silicon platforms. This reinforces GF’s pivot toward more integrated, power-efficient solutions across RF, analog, and power domains.
Financially, GF is showing strong momentum. In Q2 2025, it achieved $1.688 billion in revenue, with gross margins around 24.2%. The company is also progressing toward acquiring MIPS—a move that will allow GF to integrate RISC-V and AI IP directly into its manufacturing portfolio. These steps position GF not merely as a “foundry,” but as a vertically capable microelectronics innovator.
For microelectronics suppliers and system architects, the implications are substantial. GF’s investment signals that advanced packaging and hybrid integration will be strategic battlegrounds. Firms should expect a shift in the supply chain’s center of gravity toward U.S.-based packaging and assembly capabilities. Moreover, buyers of microcomponents will want to align with packaging-savvy suppliers and anticipate more stringent integration challenges—and opportunities.