Qualcomm Boosts Spending On GlobalFoundries Chip Collaboration By $4.2B: Report

Qualcomm Inc QCOM has agreed to buy an additional $4.2 billion in semiconductor chips from GlobalFoundries Inc's GFS New York factory.
The latest contract increased QCOM's total commitment to $7.4 billion in purchases through 2028, Reuters reports.
The deal extends on a $3.2 billion purchasing agreement between the two companies and will produce chips for use in 5G transceivers, Wi-Fi, automotive, and Internet of Things (IoT) connectivity.
QCOM, specializing in mobile phone chips, was one of GlobalFoundries' first customers to sign a long-term agreement in 2021, covering multiple geographies and technologies.
GlobalFoundries Chief Thomas Caulfield said that having Qualcomm as a long-term customer of its upstate New York factory would help, along with federal and state funding, to expand the company's U.S. manufacturing footprint.
The U.S. and Europe have already declared their support for the development of advanced technology for semiconductor chipmaking to ease the global supply crunch and reduce dependence on Asian countries.
Price Action: GFS shares traded higher by 1.35% at $59.99 premarket on the last check Tuesday.