Following the extension, GlobalFoundries said that the total long-term deal with Qualcomm represents global revenue of more than $7bn through 2028 across multiple technologies


GlobalFoundries and Qualcomm extend chips supply deal. (Credit: GlobalFoundries)

GlobalFoundries (GF) has extended a long-term agreement with Qualcomm under which the latter will buy more than $4bn worth wafers from the former’s semiconductor manufacturing facility in Malta, New York

Following the extension, GlobalFoundries said that the total long-term deal with Qualcomm represents global revenue of over $7bn through 2028 across various technologies.

According to the parties, the expanded supply agreement comes after the recent passage of the $280bn US CHIPS and Science Act bill and secures wafer supply and commitments to support chip manufacturing in the US.

Since many years, GlobalFoundries has been manufacturing the feature rich, high-performance chips of Qualcomm Technologies.

Last year, Qualcomm Technologies’ subsidiary Qualcomm Global Trading was one of GlobalFoundries’ first customers to secure supply of chips with a long-term agreement that covers various geographies and technologies.

The 2021 agreement gave 22FDX capacity at GlobalFoundries’ Dresden facility in Germany. It will now include capacity at the company’s recently announced plant in Crolles, France, which makes Qualcomm Global Trading an anchor customer in GlobalFoundries’ European proprietary technology.

Besides, Qualcomm Global Trading secured capacity in GlobalFoundries’ 8SW radio-frequency silicon-on-insulator (RFSOI) technologies for Sub 6GHz 5G front-end module (FEM). These will be manufactured mainly at the latter’s facilities in Singapore, where site expansion plans are in progress with full ramp up anticipated in early 2023.

GlobalFoundries president and CEO Thomas Caulfield said: “GF’s global manufacturing footprint enables us to partner with our customers to meet their capacity needs, where they need it.

“Our collaboration with Qualcomm Technologies delivers differentiation and innovation in mobile and IoT spanning three continents, and this long-term agreement extension provides Qualcomm Technologies with additional U.S. based manufacturing for a more resilient supply chain.”

The latest announcement by the parties particularly increases the US-based collaboration of Qualcomm Global Trading with GF in FinFET for 5G transceivers, Internet of Things (IoT), Wi-Fi, and Automotive connectivity.

Qualcomm Technologies senior vice president and chief supply chain and operations officer Roawen Chen said: “With accelerating demand for 5G, Automotive and IoT applications, a robust supply chain is critical for ensuring innovation in these areas remains uninterrupted.

“Our continued collaboration with GF helps us to expand the next generation of wireless innovation as we move toward a world where everyone and everything can be intelligently connected.”