February 20, 2024: The US government has pledged $1.5 billion to GlobalFoundries to boost semiconductor manufacturing, aiming to shore up domestic supply chains following vulnerabilities exposed by the COVID-19 pandemic.
Under a preliminary agreement with the Commerce Department, GlobalFoundries, the world’s third-largest contract chipmaker, will construct a new semiconductor production facility in Malta, New York, and expand operations in Burlington, Vermont.
This $1.5 billion grant will be supplemented by $1.6 billion in available loans, with the total investment anticipated to reach $12.5 billion across both states.
Funded through the CHIPS and Science Act, these projects are projected to create over 10,000 jobs over the next decade, with fair wages and benefits such as childcare, according to Biden administration officials.
Commerce Secretary Gina Raimondo emphasized the critical role of the chips manufactured by GlobalFoundries in national security, citing their use in satellite communications, defense systems, and everyday applications like automotive safety features and wireless connectivity.
Thomas Caulfield, President and CEO of GlobalFoundries, highlighted the need to bolster demand for US-made chips and expand the domestic semiconductor workforce.
This investment comes amidst GlobalFoundries’ global expansion, including the recent opening of a $4 billion semiconductor plant in Singapore.
Raimondo announced further funding awards under the CHIPS program in the coming weeks and months from the government’s $39 billion initiative to enhance semiconductor manufacturing.
The expansion in Malta will ensure a reliable chip supply for auto manufacturers, including General Motors (GM), aiding in preventing future chip shortages that disrupted automotive production during the pandemic.
Additionally, the new facility in Malta will produce high-value chips not currently manufactured in the US, while the upgraded Burlington facility will become the first in the country capable of high-volume production of next-generation semiconductors crucial for electric vehicles, the power grid, and smartphones.
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