US-based semiconductor manufacturer GlobalFoundries, owned by Abu Dhabi’s sovereign fund Mubadala Investment Company, and Apple have deepened their partnership as part of the global tech giant's pledge to invest in US manufacturing.
The announcement comes after Apple on Wednesday said it intends to invest an additional $100 billion in the US, bringing its total investment commitment to $600 billion in the next four years.
In its pledge, Apple also announced the American Manufacturing Programme to boost its supply chain and help move advanced manufacturing to the US. GlobalFoundries is among the first partners in the programme that also include Texas Instruments, Samsung and Broadcom.
“This is part of our $600 billion commitment to the US over the next four years, and we couldn’t be more excited about the future of American innovation,” Apple chief operating officer Sabih Khan said in a statement.
Apple's investment announcement came after President Donald Trump had threatened to impose tariffs on the company for manufacturing its flagship iPhones outside the US.
During a call with analysts after reporting earnings last week, Apple chief executive Tim Cook said a “vast majority” of its iPhones are made in India. Mr Trump doubled India's tariff rate to 50 per cent earlier on Wednesday.
GlobalFoundries investments
GlobalFoundries said its partnership with Apple will allow it to speed up investment at its facility in Malta, New York state.
“This is a testament to GF’s technology differentiation, coupled with our unique secure and onshore capabilities, and the trust Apple has placed in GF to deliver and build the advanced chips that power its next-generation smart mobile technologies,” GlobalFoundries chief executive Tim Breen said in a statement.
The UAE-backed company in June also teamed up with Apple, SpaceX, AMD, Qualcomm, NXP and General Motors as part of its plans to invest $16 billion to expand its semiconductor manufacturing and advanced packaging in New York and Vermont.
GlobalFoundries said that investment commitment, which came after the US President's visit to the UAE, was the result of collaboration with the Trump administration and support from leading technology companies.
The company on Wednesday said its partnership with Apple, as well as its $16 billion planned investment, is supported by the Trump administration's efforts to prioritise US leadership in artificial intelligence, including manufacturing semiconductors domestically.
