Qualcomm to buy GF chips for $4.2 billion

On August 9, chip giant Qualcomm announced it would buy an additional $4.2 billion worth of semiconductor chips from U.S. chipmaker GlobalFoundries’ New York factory, bringing its total purchases to $7.4 billion by 2028.

Previously, Qualcomm reached a $3.2 billion purchase agreement with GF, which produces 5G transceivers, Wi-Fi, automotive and Internet of Things (IoT) connectivity chips for Qualcomm.

GF said in a press release that Qualcomm is one of GF's first customers to sign a long-term agreement in 2021 covering multiple factory products and technologies.

GF CEO Thomas Caulfield said in a statement that having Qualcomm as a long-term customer of its upstate New York factory, coupled with government funding, will help expand the company's U.S. presence. manufacturing business.

"As demand for 5G, automotive and IoT applications accelerates, a robust supply chain is critical to ensuring continued innovation in these areas," said Roawen Chen, senior vice president and chief supply chain and operating officer at Qualcomm. GF's continued collaboration will help expand innovation in next-generation wireless."

"Our partnership with Qualcomm enables differentiation and innovation across three continents in mobile and IoT, and the expansion of this long-term agreement provides Qualcomm with additional U.S. manufacturing capabilities to build more resilience," said Caulfield. supply chain.