The Globalfoundries Chips Act is a significant development in the US semiconductor industry. It aims to support the growth of this critical sector by providing funding and incentives to domestic chip manufacturers.
The Act focuses on increasing domestic production and reducing reliance on foreign suppliers. This is a crucial step towards achieving the goal of self-sufficiency in the US semiconductor industry.
The Chips Act allocates $52 billion in funding to support the development of new chip manufacturing facilities in the US. This investment will create jobs and stimulate economic growth in local communities.
By supporting the growth of domestic chip manufacturers, the Globalfoundries Chips Act will help to reduce the US's reliance on foreign chip suppliers and improve the country's overall economic competitiveness.
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Global Foundries Receives Funding
Global Foundries has been awarded up to $1.5 billion in direct funding through the CHIPS and Science Act.
This funding will enable Global Foundries to expand its chip manufacturing and technology development in the US, across various end-markets including automotive, smart mobile devices, IoT, data centres, and aerospace and defence.
Additional reading: Who Owns Global Foundries
The award follows a preliminary memorandum of terms announced in February 2024.
The funding will support the modernisation of Global Foundries' existing fab in Essex Junction, Vermont, to expand production capacity and create one of the world's leading facilities capable of high-volume manufacturing of next-generation GaN semiconductors.
The money will also go towards the expansion of Global Foundries' existing Malta, New York, fab by adding technologies already in production at GF's Singapore and Germany facilities.
Funding may also go towards the construction of a new state-of-the-art fab on GF's Malta, New York, campus to meet expected demand for US-made essential chips.
These projects represent more than $13 billion of investment over the next 10-plus years across Global Foundries' two US sites.
This investment includes the $1.5 billion CHIPS and Science Act award, more than $550 million in support from the New York State Green CHIPS Program, as well as funding and support from Vermont, GF ecosystem partners and key strategic customers, and other incentives.
Combined, these investments are expected to create close to 1,000 direct manufacturing jobs and more than 9,000 construction jobs over the life of these projects.
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Global Foundries Gets Subsidies
Global Foundries has secured up to $1.5 billion in direct funding from the US Department of Commerce through the CHIPS and Science Act. This award will enable the company to expand its chip manufacturing and technology development in the US.
The funding will support the modernisation of GF's existing fab in Essex Junction, Vermont, to expand production capacity and create one of the world's leading facilities capable of high-volume manufacturing of next-generation GaN semiconductors. Money will also go towards expansion of GF's existing Malta, New York, fab by adding technologies already in production at GF's Singapore and Germany facilities.
GF's president and CEO, Thomas Caulfield, said the company greatly appreciates the support and funding from the US Government and the states of New York and Vermont. He stated that GF's essential chips are at the core of US economic, supply chain, and national security.
This investment represents more than $13 billion of investment over the next 10-plus years across GF's two US sites. The projects are expected to create close to 1,000 direct manufacturing jobs and more than 9,000 construction jobs over the life of these projects.
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