Long-term contracts (LTA) secure Qualcomm chips from the semiconductor plants of the contract manufacturer Globalfoundries many years into the future. The order is worth over US$4 billion and follows agreements that have previously stood. Qualcomm will rely on almost all of Globalfoundries' options.
Also, in many cases Qualcomm's technology portfolio does not require the most advanced manufacturing, apart from the well-known Snapdragon SoCs, but adapted production chains. This includes both FinFET and SOI wafers, and Qualcomm is also responsible for 22FDX production.
That agreement secured 22FDX capacity at GF's Dresden facility and will now include capacity at GF's recently announced facility in Crolles, France, making QGT an anchor customer in GF's leading European proprietary technology. QGT has also secured capacity in GF's market leading 8SW radio-frequency silicon-on-insulator (RFSOI) technologies for Sub 6GHz 5G front-end module (FEM) which will be primarily manufactured in GF's Singapore facilities, where site expansion plans are well underground with full ramp expected in early 2023.
Today's announcement specifically extends QGT's U.S. based collaboration with GF in FinFET for 5G transceivers, Wi-Fi, Automotive and IoT connectivity. GF's FinFET platforms provide a best-in-class combination of performance, power and area that are well-suited for high-end Mobile, Automotive and IoT applications.