US awards US$1.5 billion to GlobalFoundries for domestic semiconductor production
- Expansion projects are expected to create 1,500 manufacturing jobs and 9,000 construction jobs over a decade, said the Biden administration
- Commerce Secretary Gina Raimondo said: ‘The chips that GlobalFoundries will make … are essential chips to our national security’
The US government is awarding US$1.5 billion to GlobalFoundries to expand semiconductor production, the Biden administration said on Monday, in a bid to strengthen domestic supply chains after the Covid-19 pandemic exposed weaknesses.
GlobalFoundries, the world’s third-largest contract chip maker, will build a new semiconductor production facility in Malta, New York, and expand existing operations there and in Burlington, Vermont, according to a preliminary agreement with the Commerce Department.
The US$1.5 billion grant will be accompanied by US$1.6 billion in available loans, with the funding expected to generate US$12.5 billion in overall potential investment across the two states, the department said.
The projects, funded under the Chips and Science Act, are expected to create 1,500 manufacturing jobs and 9,000 construction jobs over a decade, said Biden administration officials, adding that the positions will pay fair wages and offer benefits like childcare.
