By Dean Seal
Shares of GlobalFoundries Inc. were up 7.7% to $57.20 in early trading Monday after the company disclosed the extension of a supply deal with a Qualcomm Technologies Inc. subsidiary.
The contract chip maker and Qualcomm said they were more than doubling their existing long-term semiconductor manufacturing agreement, which will run through 2028.
The agreement covers the companies' collaboration for 5G receivers, wi-fi, automotive and internet-of-things connectivity.
"With accelerating demand for 5G, automotive and IoT applications, a robust supply chain is critical for ensuring innovation in these areas remains uninterrupted," said Roawen Chen, Qualcomm's supply chain and operations chief.
U.S. Senate Majority Leader Chuck Schumer praised the extension, noting that it comes on the heels of the Senate approving the CHIPS and Science Act of 2022, which aims to foster a domestic semiconductor industry.
"With major new federal incentives for microchip manufacturing in the U.S., I look forward to many more announcements like this to come," he said.
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(END) Dow Jones Newswires
August 08, 2022 11:39 ET (15:39 GMT)Copyright (c) 2022 Dow Jones & Company, Inc.