September 29, 2025 /SemiMedia/ — GlobalFoundries said it has signed a final agreement with Chinese foundry Zensemi to strengthen its “China for China” strategy, aiming to provide local chip supply for customers in the country.

The partnership will focus on 40nm CMOS technology for automotive electronics, with GlobalFoundries providing the process know-how while Zensemi handles local wafer production. The move is intended to meet demand for locally manufactured chips and ensure stable delivery within China.

GlobalFoundries CEO Tim Breen said the cooperation reflects both long-standing ties with China and the impact of geopolitical factors. “Local manufacturing enables us to serve Chinese customers more effectively, while also giving them flexibility to leverage our global network when needed,” Breen said.

Founded in 2021 in Guangzhou with a registered capital of 7.275 billion yuan(about 1.0 billion USD), Zensemi is building a 12-inch wafer fab dedicated to sensor products and application-specific ICs.

GlobalFoundries added that the partnership will provide three key benefits: securing local manufacturing capacity for Chinese customers, offering multinational clients multi-site production options across the US, Europe and Asia, and supporting companies that require local chip output in China.