GlobalFoundries Secures $1.5 Billion in CHIPS Act Funding for U.S. Expansion

The Biden administration provides $1.5 billion in funding to support semiconductor production under the . The company, which spun off from AMD in 2009 and also has access to $1.6 billion in loans from the CHIPS program office, will split the money among three projects.

First, GlobalFoundries will build a new manufacturing facility in Malta, NY, where it aims to produce “high-value technologies not currently available in the United States,” the Commerce Department said in a statement. it will use the facility to build chips for a range of industries and applications, including automotive, aerospace, defense and AI. Construction is expected to start in 2025.

Second, GlobalFoundries plans to expand its existing facilities in Malta by integrating technology from its factories in Singapore and Germany with the aim of manufacturing more semiconductors for use in cars and trucks. This expansion, combined with the new manufacturing facility, will allow GlobalFoundries to triple the capacity of its Malta campus over the next decade. Once all phases of both projects are completed, GlobalFoundries plans to increase wafer production to 1 million per year across all factories.

Finally, the remaining funding will be used to upgrade an existing factory in Burlington, Vermont. The goal is to build the first U.S. factory capable of mass-producing next-generation gallium nitride on silicon semiconductors for electric vehicles, smartphones, the power grid and other key technologies. The plant will use completely carbon-free energy, while an on-site solar system will provide up to nine percent of annual electricity needs.

Through public-private partnerships, GlobalFoundries plans to invest more than $12 billion in the sites over the next ten years. New York is also Malta projects with $575 million in performance-based Green CHIPS tax credits, while the New York Power Authority is investing at least $30 million.

The Commerce Department says the three projects are expected to create 1,500 manufacturing jobs and about 9,000 construction jobs over the next 10 years. The positions are technology/us-awards-15-bln-globalfoundries-domestic-semiconductor-production-2024-02-19/?taid=65d36f501ba9b1000160fc0a&utm_campaign=trueAnthem:+Trending+Content&utm_medium=trueAnthem&utm_source=twitter” rel=”nofollow noopener” target=”_blank” data-ylk=”slk:slated;elm:context_link;elmt:doNotAffiliate;cpos:5;pos:1;itc:0;sec:content-canvas”> pay fair wages and provide benefits, including child care.

Aligned with the broader goals of the CHIPS Act, the investment is designed to improve domestic semiconductor supply chains. GlobalFoundries says there are only four companies capable of providing “current, mature foundry capabilities” at scale outside of China, and it is the only one based in the United States.

Last year, the company supplying the automaker with U.S.-made processors and helping it avoid the type of chip shortage that has caused a significant slowdown in auto manufacturing amid the COVID-19 pandemic. GlobalFoundries has agreed to create an exclusive capacity corridor for GM chips. GlobalFoundries in 2021 as well.