Apple doubles down on us chip supply with GlobalFoundries deal
Malta, Thursday, 14 August 2025.
Apple and GlobalFoundries are strengthening their ties to boost semiconductor manufacturing in the United States. The partnership aims to secure Apple’s chip supply and enhance domestic production. GlobalFoundries will accelerate investments in its Malta, New York facility. This will foster innovation in AI-enabling technologies. Apple’s COO, Sabih Khan, highlighted this collaboration as part of their $600 billion commitment to the US economy. GlobalFoundries also plans a $16 billion investment across New York and Vermont.
Driving semiconductor innovation
The expanded partnership focuses on advancing semiconductor technologies crucial for AI and mobile devices [1][7]. GlobalFoundries’ CEO, Tim Breen, emphasized that this agreement marks a significant step in their decade-long collaboration with Apple [1]. They aim to manufacture vital wireless connectivity and power management solutions [1]. These components are essential for next-generation AI-enabled devices [1]. This collaboration highlights GlobalFoundries’ technological strengths and secure US-based manufacturing capabilities [1]. It also showcases Apple’s confidence in GlobalFoundries’ ability to deliver advanced chips [1].
Investment and expansion plans
GlobalFoundries plans to invest $16 billion to boost semiconductor manufacturing across its New York and Vermont facilities [1][7]. This investment aims to expand advanced packaging capabilities [1]. These efforts align with governmental policies prioritizing American leadership in AI and domestic semiconductor production [1]. The investment should bolster supply chain security [1]. This move underscores a shared commitment to strengthening US semiconductor manufacturing [1]. This will lead to a more resilient onshore supply chain [1].
Market impact and stock analysis
Analysts are closely watching the impact of this partnership on GlobalFoundries’ stock [6]. Simply Wall St community estimates the fair value of GlobalFoundries’ shares to range from $25.20 to $54.14 [6]. GlobalFoundries anticipates $8.9 billion in revenue and $1.4 billion in earnings by 2028 [6]. This projection is based on an annual revenue growth of 9.0% and a $1.515 billion increase in earnings from the current level of -$115.0 million [6]. Investors should monitor how these developments influence GlobalFoundries’ financial performance and market position [GPT].