GFS Stock Bucks Market Weakness: GlobalFoundries To Add Up To 1.8 Million Wafers Of Annual Capacity With 2 New York Fabs

GlobalFoundries said the first fab is expected to involve approximately $10 billion in investment and begin operations in 2029.

• The company said its second facility could receive another roughly $10 billion.
• It estimated that both facilities could add around 1.8 million 300-millimeter wafers of annual U.S. manufacturing capacity once fully operational.
• GlobalFoundries said the expansion has support from customers and industry partners, including Apple, Cirrus Logic and General Motors.

GlobalFoundries (GFS) shares bucked the broader market weakness on Wednesday morning after the company announced that it had been chosen to run two new chip fabrication sites at its New York campus as part of the $21 billion investment push between the U.S. and Japan.

The company said the first fab will receive approximately $10 billion in investment and is expected to begin operations in 2029. A second fab could receive another approximately $10 billion, subject to the initiative's plans.

GFS stock gained nearly 5% in morning trade on Wednesday amid broader weakness in the market after the consumer price index (CPI) year-over-year gain came in hotter than expected at 3.7%, compared to economists’ estimate of 3.6%.

The SPDR S&P 500 ETF Trust (SPY) edged 0.3% lower, while the Nasdaq-100 tracking Invesco QQQ Trust Series 1 (QQQ) fell 0.6%. Both were among the top trending on Stocktwits. Retail sentiment around GFS shares on the platform remained in ‘bullish’ territory over the past day. 

GlobalFoundries said the expansion has support from customers and industry partners, including Renesas Electronics, Tokyo Electron, Apple (AAPL), Cirrus Logic (CRUS) and General Motors (GM).

GlobalFoundries Could Add 1.8M Wafers Of Annual Capacity

GlobalFoundries said its first facility is expected to add approximately 900,000 300-millimeter wafers of annual U.S. manufacturing capacity once it’s fully operational. 

The company added that the second fab could contribute a similar amount, bringing the potential combined addition to roughly 1.8 million wafers annually.

GlobalFoundries also said it expects to break ground on the first facility later in 2026, stating that the site is already permitted and ready for construction. It estimated that the projects could add around 27,000 construction and broader ecosystem jobs, alongside more than 1,000 high-skilled manufacturing positions.

GlobalFoundries To Redirect $955M In CHIPS Act Funding

In addition to the two new chip manufacturing facilities, GlobalFoundries said an amended award under the U.S. CHIPS and Science Act will redirect $955 million toward accelerating investments in silicon photonics, silicon-germanium (SiGe) technology and advanced packaging.

The technologies are used in applications including high-speed communications and advanced semiconductor systems. The investments are aimed at supporting operations at its plants in New York and Vermont.

The company also said the U.S. Department of Commerce will receive an approximately 4% equity stake in GlobalFoundries under a separate agreement.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<