Gilead launches next-generation manufacturing hub amid $32B spend
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Gilead Sciences has broken ground on a pharmaceutical manufacturing hub at its Foster City, California headquarters, marking a milestone in its $32 billion commitment to strengthen domestic operations through 2030. The project reflects Gilead’s ambition to scale biologics manufacturing and a broader industry movement to reinforce supply chains in response to policy shifts and tariff pressures.
Gilead’s California hub sets the stage for long-term investment
The new Foster City facility will span five stories and cover 180,000 square feet. It is designed to advance biologics production with flexible pilot labs, robotics integration, and real-time monitoring systems. The hub will also support therapies still in development, giving Gilead the ability to adapt quickly to new product demands.
Alongside this project, Gilead is building a research center dedicated to accelerating drug discovery and a biologics plant to expand domestic production. Together, these facilities represent a decisive step in reshoring pharmaceutical activity and embedding advanced engineering in the US biotech sector.
Billions pledged to strengthen US pharmaceutical supply chains
In May 2025, Gilead added $11 billion to its US investment program, bringing the total to $32 billion through the end of the decade. Of this, $4 billion is directed to new labs and equipment, $5 billion to technical operations and research, and $2 billion to digital and engineering initiatives.
The company estimates that these projects will generate more than $43 billion in economic value across the US over five years. By 2028, Gilead expects to create around 800 direct roles and more than 2,200 indirect jobs, underscoring the importance of high-skill employment to regional economies.
Competitors join the race to expand domestic manufacturing
Gilead’s initiative is part of a wider surge in biopharmaceutical investment. Eli Lilly has announced $27 billion in new facilities, Johnson & Johnson is committing $55 billion, and Roche has pledged $50 billion across diagnostics and drug manufacturing. AstraZeneca has targeted $50 billion by 2030, Novartis $23 billion for 10 new sites, and Sanofi $20 billion in expansions. Biogen has announced a $2 billion project in North Carolina.
This wave of announcements shows how quickly the sector is responding to shifting policy. Companies are not only expanding capacity but also ensuring that US facilities play a more central role in global production networks.
Why US policy and global pressure are reshaping pharma strategy
The scale of these investments reflects the influence of government policy and trade dynamics. Potential tariffs on imported drugs, alongside incentives for domestic production, are pushing companies to accelerate onshoring. The pandemic exposed vulnerabilities in global supply chains, prompting both regulators and manufacturers to prioritize resilience.
Technology is also central to this strategy. Robotics, AI-driven process monitoring, and digitally integrated production are now core to how facilities are designed. For Gilead, embedding these capabilities in its California hub ensures that its supply chain is both adaptive and efficient.
Gilead’s new hub is more than an expansion project; it signals the company’s long-term confidence in US-based production. At the same time, it places Gilead within a competitive landscape where peers are making equally ambitious moves. The result is a reshaped pharmaceutical sector that emphasizes domestic resilience, economic contribution, and advanced technology.
For policymakers, this wave of investment aligns with national goals to reduce dependence on imports and strengthen the US position as a leader in biopharmaceutical innovation. For the industry, it marks a new phase of growth that blends science, infrastructure, and policy in ways that will define global healthcare manufacturing for decades.
Sources
Fierce Pharma