According to a filing made public on Monday, Qualcomm Technologies, Inc. agreed to purchase an extra $4.2 billion in semiconductor chips from GlobalFoundries’ (GF, Nasdaq: GFS) New York facility, raising its total commitment to $7.4 billion in purchases through 2028.

The two companies’ previous $3.2 billion purchase deal has been expanded by the announcement, which will result in the production of chips for 5G transceivers, Wi-Fi, automotive, and Internet of Things (IoT) connectivity.

U.S. chipmaker Qualcomm, which specializes in mobile phone chips, was one of GlobalFoundries’ first customers to sign a long-term agreement in 2021, covering multiple geographies and technologies, according to a press release published by the firms.

In addition to federal and state support, GlobalFoundries Chief Executive Thomas Caulfield stated in a statement that having Qualcomm as a long-term client of its upstate New York factory will aid in growing the business’s U.S. manufacturing footprint.

The U.S. Senate passed strict laws last month to support the domestic semiconductor industry. The bill includes nearly $52 billion in government subsidies for semiconductor production as well as a $24 billion investment tax credit for chip factories.

“With major new federal incentives for microchip manufacturing in the United States, I look forward to many more announcements like this to come,” said Senate Majority Leader Chuck Schumer.

In order to enhance its chip sector and reduce dependence on American and Asian suppliers, the European Union has recently loosened funding regulations for new semiconductor plants.

In order to take advantage of the subsidies, Intel and GlobalFoundries have announced growth plans on both continents, with GlobalFoundries collaborating with STMicroelectronics to construct a $5.7 billion semiconductor facility in France.

The story came as the leaders of GlobalFoundries, Applied Materials, and the automaker Ford Motor and General Motors Co. were preparing to meet with U.S. government representatives on Monday for a conference behind closed doors to discuss administration plans to invest in semiconductors.

Following Samsung Electronics Co. Ltd. and Taiwan Semiconductor Manufacturing Co. Ltd., GlobalFoundries is the third-largest foundry in the world by revenue, but it falls to second place when Samsung‘s foundry division, which produces chips for other parts of the South Korean company, is excluded.

The company, which is mostly owned by Mubadala Investment Co., a sovereign wealth fund of Abu Dhabi, raised $2.6 billion through an IPO on the Nasdaq last year.