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

• Qualcomm Inc (NASDAQ: QCOM) has agreed to buy an additional $4.2 billion in semiconductor chips from GlobalFoundries Inc's (NASDAQ: 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.

See more from Benzinga

• Micron Technology Cuts Q4 Outlook; Earmarks $40B In Chip Manufacturing Over The Decade

• GlobalFoundries Clocks 23% Revenue Growth In Q2; Expands Margins

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