MALTA, N.Y. (NEWS10) – Qualcomm agreed to buy an additional $4.2 billion in semiconductor chips from GlobalFoundries’ Malta factory, bringing its total commitment to $7.4 billion in purchases through 2028, according to a Monday release. The announcement comes after a prior $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.

U.S. chipmaker Qualcomm, which makes mostly mobile phone chips, was one of GlobalFoundries’ first customers to sign a long-term agreement in 2021, covering multiple geographies and technologies. GlobalFoundries Chief Executive Thomas Caulfield said in a statement that having Qualcomm as a long-term customer of its Malta factory would help to expand the company’s nationwide manufacturing footprint.

Congressman Paul D. Tonko cheered the announcement Monday afternoon, saying, “Today’s welcome news is exactly why I fought so hard to deliver robust legislation that drives U.S. semiconductor manufacturing. Our CHIPS and Science Act is a game-changer for our Capital Region and will reinvigorate this critical industry while bringing good-paying jobs and key investments for years to come.”

“[Tuesday], I will join President Biden to celebrate making this transformational bill law,” continued Tonko. “As I look forward to additional pioneering investments like those between GlobalFoundries and Qualcomm, I will continue pushing for action that delivers for American workers, consumers, and communities.”

The global demand for semiconductors is growing at an unprecedented rate, according to Erica McGill, a spokesperson for GlobalFoundries. McGill said the company is responding to this growth through a series of strategic long-term agreements with existing and new customers and simultaneously expanding global capacity to meet customer demand in partnership with federal and local governments. Monday’s announcement is an important step consistent with this collaborative model, she said.