GlobalFoundries (GFS) shares gained Wednesday when the maker of so-called essential semiconductors announced it would invest more than $16 billion to increase its production in the U.S.

The Malta, N.Y.-based company said the move comes in response to President Donald Trump’s effort to build more chips domestically, and the booming demand for more 澳洲幸运5官方开奖结果体彩网:artificial intelligence (AI) products. GlobalFoundries supplies a wide range of tech companies, including Apple (AAPL) and Advanced Micro Devices (AMD). 

The firm explained that more than $13 billion of the spending would be to expand and modernize its current facilities in New York and Vermont, and fund its recently launched New York Advanced Packaging and Photonics Center. An additional $3 billion will be dedicated to advanced research and development initiatives focused on "packaging innovation, silicon photonics and next-generation GaN technologies." GaN stands for gallium nitride, used especially for power devices.

CEO Tim Breen noted the company is proud to "partner with pioneering technology leaders to manufacture their chips in the United States—advancing innovation while strengthening economic and supply chain resiliency." Breen added the skyrocketing growth of AI is driving "strong, durable demand" for GlobalFoundries technologies.

Even with today's roughly 2.5% gains, shares of GlobalFoundries are down about 12% year-to-date.