Chip manufacturer GlobalFoundries said on Wednesday it planned to increase its investment plans to $16 billion, allocating an additional $1 billion to capital spending and $3 billion to research in several emerging chip technologies.

The Malta, New York-based company said it is working with the Trump administration to bring chip manufacturing technology and various components of that supply chain onto U.S. soil. The chip manufacturer attributed the expansion to the boom in artificial intelligence hardware, a trend that has also benefited other chipmakers such as Taiwan Semiconductor Manufacturing Co.

The $1 billion capital spending boost is expected to support factory expansions in New York and Vermont, and is in addition to the $12 billion the company said in 2024 it planned to invest over the next 10 plus years.

GlobalFoundries did not disclose a specific timeframe for the additional funding it announced on Wednesday.

The $3 billion in research and development GlobalFoundries said it will spend will be split into three areas: chip packaging technologies, silicon photonics that can be used to make quantum computing processors, and gallium nitride which is used in electric vehicles and other power-related applications.

Source: Finance.yahoo