The Clap
Qualcomm (NASDAQ: QCOM) will invest $4.2 billion in chips from GlobalFoundries (NASDAQ: GFS).
The Deets
This investment will bring the total commitment up to $7.4 billion in purchases until 2028. The chips will be used to produce 5G transceivers, Wi-Fi, automotive, and IoT connectivity.
For GlobalFoundries, having Qualcomm as a long-term customer will help them expand and increase manufacturing.
Why this Matters
The US Senate is set to subsidize the domestic semiconductor industry, providing $52 billion in subsidies.
Intel and GlobalFoundries agreed to an expansion plan in order to benefit from the subsidies.