GlobalFoundries Boosts U.S. Investment, Adds China Fabs to Meet Auto Chip Demand
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GlobalFoundries Inc. is deepening its manufacturing investments in both the United States and China as it seeks to navigate escalating geopolitical tensions and tap into rising demand from the auto industry.
The U.S.’s largest contract chipmaker has secured subsidies under the CHIPS and Science Act without ceding equity — a key departure from a recent Intel Corp. agreement — according to Mike Hogan, chief business officer at GlobalFoundries. “We can’t control tariff policies, so the best approach is to expand our global footprint and give customers more options,” Hogan told Caixin during the company’s 2025 technology summit on Sept. 24.
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- GlobalFoundries is expanding manufacturing in the U.S. and China to address geopolitical tensions and rising auto chip demand.
- The company secured $1.5 billion in CHIPS Act subsidies, increasing its U.S. investment commitment to $16 billion over 10 years, while partnering with Guangzhou Zen Semiconductor in China.
- In Q2, overall revenue grew 3% to $1.69 billion, with automotive chip revenue up 36% to $368 million; it held a 4.2% global foundry market share.
- GlobalFoundries Inc.
- GlobalFoundries Inc. is expanding investments in both the US and China to navigate geopolitical tensions and meet rising auto industry demand. The company, the largest contract chipmaker in the US, secured $1.5 billion in CHIPS Act subsidies and plans to invest $16 billion in the US. In China, it partnered with Guangzhou Zen Semiconductor Corp. to serve the local market, especially in EVs. GlobalFoundries was the world's fifth-largest foundry in Q1.
- Intel Corp.
- Intel Corp. entered an agreement in August to give the U.S. government a 9.9% stake in exchange for subsidies under the CHIPS and Science Act. This contrasts with GlobalFoundries, which secured subsidies without ceding equity. The article highlights how GlobalFoundries' approach differs from Intel's in navigating government funding.
- Guangzhou Zen Semiconductor Corp.
- Guangzhou Zen Semiconductor Corp. is a "Guangzhou-based foundry" with whom GlobalFoundries announced a partnership on September 1. This collaboration aims to provide GlobalFoundries with "local foundry partners" in China, especially in response to the growing demand from the automotive chip sector. GlobalFoundries will retain full ownership of its core process technologies within this partnership.
- TSMC
- TSMC (Taiwan Semiconductor Manufacturing Company) is mentioned as the world's largest foundry in the first quarter, according to market research firm TrendForce. It held a leading position with a market share greater than GlobalFoundries, Samsung, SMIC, and UMC.
- Samsung
- Samsung is mentioned as the second-largest foundry globally in the first quarter, trailing Taiwan's TSMC and ahead of China's SMIC and Taiwan's UMC. It holds a significant position in the highly competitive semiconductor manufacturing market.
- SMIC
- SMIC is mentioned as one of the world's largest foundries, trailing TSMC and Samsung, but ahead of UMC, with a market share greater than GlobalFoundries' 4.2%. This indicates its significant position in the global semiconductor manufacturing landscape, particularly within China.
- UMC
- UMC (联华电子) is mentioned as one of the world's largest foundries. According to TrendForce, UMC was the fourth-largest foundry globally in the first quarter, following TSMC, Samsung, and SMIC, and ahead of GlobalFoundries.
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