The US government has awarded a $1.5 billion grant to GlobalFoundries under a broader initiative to enhance domestic semiconductor production.
This funding, part of the CHIPS and Science Act initiative approved by Congress in 2022, will facilitate the construction of a new semiconductor production site in New York, and the expansion of operations in Vermont.
Combined, these investments are expected to create over 1,500 manufacturing jobs and about 9,000 construction jobs over the life of the projects.
“These proposed investments, along with the investment tax credit (ITC) for semiconductor manufacturing, are central to the next chapter of the GlobalFoundries story and our industry,” said Dr. Thomas Caulfield, president and chief executive of GlobalFoundries.
“They will also play an important role in making the US semiconductor ecosystem more globally competitive and resilient and cements the New York Capital Region as a global semiconductor hub.
“With new onshore capacity and technology on the horizon, as an industry, we now need to turn our attention to increasing the demand for US-made chips, and to growing our talented U.S. semiconductor workforce.”
Voices across the US semiconductor industry chimed in with their support of the funding.
“We are pleased that GlobalFoundries will be receiving a $1.5 billion investment from the US CHIPS and Science Act,” said Dr. Lisa Su, chair and chief executive of fabless chipmaker AMD.
“GlobalFoundries is a strategic supplier and key enabler of AMD’s high-performance computing products. The planned investment demonstrates the commitment of the U.S. government to strengthen the domestic chip supply chain for economic growth and ensure the long-term competitiveness of the U.S. semiconductor ecosystem.”
Clients and partners of GlobalFoundries, including Qualcomm, Lockheed Martin and General Motors, also celebrated the funding.
“We are pleased that GlobalFoundries will be receiving a $1.5 billion investment from the U.S. CHIPS and Science Act,” said Dr. Lisa Su, Chair and CEO of AMD.
“GlobalFoundries is a strategic supplier and key enabler of AMD’s high-performance computing products. The planned investment demonstrates the commitment of the U.S. government to strengthen the domestic chip supply chain for economic growth and ensure the long-term competitiveness of the U.S. semiconductor ecosystem.”
Vermont Governor Phil Scott said it was “huge news for Vermont and the region”.
“The CHIPS Act funding will help encourage innovation and expansion of this vital sector in our state and across the country. I’m proud of the work my team has done with GF and others to assist and I want to thank the Biden Administration and our congressional delegation for their continued partnership.”