Key Points:
- The U.S. government allocates $1.5 billion to GlobalFoundries to expand semiconductor production as part of efforts to fortify domestic supply chains.
- GlobalFoundries will build a new semiconductor production facility in Malta, and expand existing operations in Malta and Burlington.
- The grant will be complemented by $1.6 billion in available loans, fostering an overall potential investment of $12.5 billion across the two states.
- Over 10,000 jobs are expected to be created over a decade, with a focus on offering fair wages and benefits to employees.
The United States government has announced a $1.5 billion award to GlobalFoundries (GFS.O) to bolster semiconductor production as part of efforts to enhance domestic supply chains. This move, unveiled by the Biden administration on Monday, aims to strengthen the nation’s capabilities in semiconductor manufacturing.
Under the agreement with the Commerce Department, GlobalFoundries, the world’s third-largest contract chipmaker, will establish a new semiconductor production facility in Malta, New York, and expand its existing operations in Malta and Burlington, Vermont. The grant will be supplemented by $1.6 billion in available loans, fostering an overall potential investment of $12.5 billion across the two states.
Officials from the Biden administration anticipate that these projects, funded through the CHIPS and Science Act, will create over 10,000 jobs over a decade, offering fair wages and benefits like childcare to employees.
Gina Raimondo, United States Secretary of Commerce, emphasized the critical role of the chips produced by GlobalFoundries in national security, citing their application in satellite communication, defense systems, automotive safety features, and everyday consumer electronics. The expansion of the Malta facility is particularly significant for ensuring a stable supply of chips for auto suppliers and manufacturers, including General Motors (G.M.), according to Raimondo.
Raimondo highlighted that this funding initiative marks the government’s third CHIPS announcement, with further funding awards expected in the coming weeks and months from the $39 billion program aimed at boosting semiconductor manufacturing.
