GlobalFoundries Stock Edges Up Pre-Market As It Expands Packaging Capacity With New Facility: Retail Remains Divided

GlobalFoundries said that this facility will manufacture, process, package, and test its chips entirely onshore in the U.S., in line with the government’s efforts to attract companies to make crucial semiconductor chips in the country.

Shares of GlobalFoundries Inc. (GFS) gained more than 1% in pre-market trade on Friday as the company announced an expansion of its packaging capacity with a new facility in New York.

Governor Kathy Hochul announced on Friday that GlobalFoundries will invest $575 million to set up a new advanced packaging and testing facility in Saratoga County.

GlobalFoundries said that this facility will manufacture, process, package, and test its chips entirely onshore in the U.S., in line with the government’s efforts to attract companies to make crucial semiconductor chips in the country.

The company said it received $20 million in assistance from the State of New York and up to $75 million from the U.S. Department of Commerce.

“We’re proud to partner at the state and federal level on this new center, which is a direct response to our customers asking for more geodiversity in their supply chains and additional support with advanced packaging solutions for GF silicon photonics, Trusted, and 3D/HI offerings,” said Dr. Thomas Caulfield, president and CEO of GlobalFoundries.

Retail sentiment on Stocktwits was in the ‘neutral’ (48/100) territory, while message volume was in the ‘high’ (59/100) zone.

Meanwhile, one user thinks that GlobalFoundries stock’s price action is where investors should go long, given the company’s upcoming manufacturing facility, which is set to break ground this year.

GlobalFoundries’ share price has fallen by nearly 30% in the past six months, but its one-year performance has been relatively more resilient, with a decline of 25%.

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