GlobalFoundries (GF) said it has submitted two applications to the US Department of Commerce for funding under the US CHIPS and Science Act Funding program.
The semiconductor maker noted in a statement that it is a longstanding partner to the US government and the leading supplier of securely manufactured essential chips for the US aerospace and defense industry.
The CHIPS Act provides $52.7 billion in subsidies and funding for US semiconductor research, development, manufacturing, and workforce development. It also provides a 25% investment tax credit for capital expenses for the manufacturing of semiconductors and related equipment.
The Act, signed into law by President Joe Biden in 2022, is aimed at securing domestic supply, creating high-skilled manufacturing jobs and spurring private investment.
“As the leading manufacturer of essential semiconductors for the US government, and a vital supplier to the automotive, aerospace and defense, IoT and other markets, GF has submitted our applications to the CHIPS Program Office to participate in the federal grants and investment tax credits enabled by the US CHIPS and Science Act,” GF senior director of global government affairs at GF.
“This federal support is critical for GF to continue growing its U.S. manufacturing footprint, strengthening U.S. economic security, supply chain resiliency, and national defense.”
GlobalFoundries shares were little changed at $56.80 by 1pm ET on Monday.
Contact the author at stephen.gunnion@proactiveinvestors.com