The Biden-Harris Administration, in conjunction with the US Department of Commerce, has announced a $1.5bn funding to GlobalFoundries to bolster essential chip manufacturing in the US.
A part of the CHIPS and Science Act, the funding will allow GF to produce more essential chips for automotive, aerospace, defence, and other vital markets.
The investment will be allocated across GF’s three key projects, including a new 300mm fabrication facility and capacity expansion in Malta, New York, and the revitalisation of a Burlington, Vermont fab.
The projects in Malta, New York include constructing a new 300mm fab and expanding the existing facility, which includes a strategic agreement with General Motors.
These projects aim to triple Malta's capacity over the next decade and increase wafer production to one million per year.
Furthermore, the Burlington, Vermont project will revitalise a fab to manufacture next-generation technologies, with a focus on sustainability and carbon-neutral energy use.
These three initiatives are expected to generate approximately 1,500 manufacturing jobs and 9,000 construction jobs over ten years.
The $1.5bn grant awarded to GlobalFoundries will be complemented by $1.6bn in accessible loans. This financial backing is projected to catalyse a total potential investment of $12.5bn spanning across the two states.
To support the two projects in the US state, New York Governor Kathy Hochul unveiled a financial package including a $575m allocation towards the New York State Green CHIPS project.
Additionally, $15m has been earmarked to support NYS Workforce Development initiatives specifically tailored for GlobalFoundries.
Furthermore, there's a commitment of $30m for NYS Infrastructure upgrades and Energy incentives, facilitated by the New York Power Authority (NYPA).
US vice-president Kamala Harris said: “Semiconductors are the brain of modern technology. While they are no larger than a fingernail and no thicker than a piece of paper, they are essential to every electronic device that we currently use – from computers and televisions to cars and washing machines.
“Thanks to our Administration’s CHIPS and Science Act, we are announcing the Department of Commerce’s preliminary agreement with GlobalFoundries, which will award approximately $1.5bn to expand domestic production of semiconductors, strengthen US supply chains, and create thousands of good paying jobs right here in America.”
