Shares of semiconductor manufacturing foundry company GlobalFoundries (NASDAQ: GFS) rocketed 11.7% higher on Monday, as of 3:52 p.m. ET despite much of the chip sector selling off on the heels of Nvidia's (NASDAQ: NVDA) negative earnings pre-announcement.

GlobalFoundries defied the sector by announcing an extension of its supply agreement with mobile chip giant Qualcomm (NASDAQ: QCOM). The announcement followed a positive week for GlobalFoundries stock during which it benefited from heightened tensions between Taiwan and mainland China since the company is based in the U.S. and Europe, and not in East Asia.

There was a summit held today in Washington D.C. hosted by leading CEOs of chip companies like GlobalFoundries and chip consumers like Ford (NYSE: F), along with members of the Biden administration, to celebrate the passing of the CHIPS Act. It was at that event that GlobalFoundries announced the new extension of its long-term agreement with Qualcomm.

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Source Fool.com