SAN FRANCISCO, June 4 (Reuters) - Chip manufacturer

GlobalFoundries ( GFS ) said on Wednesday it planned to increase

its investment plans to $16 billion, allocating an additional $1

billion to capital spending and $3 billion to research in

several emerging chip technologies.

The Malta, New York-based company said it is working with

the Trump administration to bring chip manufacturing technology

and various components of that supply chain onto U.S. soil.

The chip manufacturer attributed the expansion to the boom

in artificial intelligence hardware, a trend that has also

benefited other chipmakers such as Taiwan Semiconductor

Manufacturing Co. ( TSM )

"The AI revolution is driving strong, durable demand for

GF's technologies that enable tomorrow's data centers,"

GlobalFoundries ( GFS ) Chief Executive Tim Breen said in a statement.

The $1 billion capital spending boost is expected to support

factory expansions in New York and Vermont, and is in addition

to the $12 billion the company said in 2024 it planned to invest

over the next 10 plus years.

GlobalFoundries ( GFS ) did not disclose a specific timeframe for

the additional funding it announced on Wednesday.

The $3 billion in research and development GlobalFoundries ( GFS )

said it will spend will be split into three areas: chip

packaging technologies, silicon photonics that can be used to

make quantum computing processors, and gallium nitride which is

used in electric vehicles and other power-related applications.

In April, Intel ( INTC ) and TSMC showed off their latest

chip manufacturing and packaging capabilities at events,

including the capability to stitch together multiple chips into

a dinner-plate-sized device.