Qualcomm Technologies agreed to spend an additional $4.2 billion on semiconductor chips produced at a GlobalFoundries factory in the US, raising its total purchase commitment to $7.4 billion until the end of 2028.

The move builds on a previous $3.2 billion purchasing agreement between the companies and focuses on the production of chips for use in 5G transceivers, Wi-Fi, automotive and IoT.

Qualcomm stated it had secured wafer supply and commitments “to support US-based manufacturing through capacity expansion” at GlobalFoundries’ facility in New York state.

Roawen Chen, Qualcomm SVP and chief supply chain and operations officer, said the company’s “continued collaboration with GlobalFoundries helps us to expand the next generation of wireless innovation as we move toward a world where everyone and everything can be intelligently connected”.

GlobalFoundries noted it had manufactured Qualcomm’s high-performance chips for many years.

In 2021, Qualcomm became one of GlobalFoundries’ first customers to secure a supply with a long-term agreement, “covering multiple geographies and technologies”.

The extension of the pair’s agreement also comes less than two weeks after the US Congress passed the $280 billion CHIPS and Science Act, with a key focus on boosting semiconductor manufacturing capacity in the nation.

Around $52.7 billion is being allocated to boost semiconductor research, development, manufacturing, and workforce development.

In a statement, the White House revealed President Joe Biden is due to sign the bill into law today (9 August).