U.S. Government Injects $1.5 Billion into Semiconductor Production
Boosting Domestic Chipmaking Capacity
The U.S. Commerce Department has officially sealed a deal worth $1.5 billion to support GlobalFoundries’ expansion of semiconductor production in Malta, New York, and Vermont. This significant investment will enable the world’s third-largest contract chipmaker to increase its manufacturing capacity, serving key industries such as automotive, smart mobile devices, Internet of Things, data centers, and aerospace and defense.
A Major Step Forward for U.S. Manufacturing
GlobalFoundries has committed to investing $13 billion over the next decade in its U.S. manufacturing sites. This partnership with the Commerce Department marks a crucial milestone in the company’s growth strategy, solidifying its position as a leading chipmaker in the country.
Racing Against Time
Commerce Secretary Gina Raimondo emphasized the urgency to finalize agreements with recipients under the $52.7 billion “Chips and Science” program, created in 2022, before the Biden administration’s term ends on January 20. The department is working diligently to complete these deals, recognizing the critical role they play in shaping the country’s technological future.
Enhancing U.S. Auto Industry Capabilities
The Commerce award will support the expansion of GlobalFoundries’ Malta, New York fab by introducing cutting-edge technologies already in use at the company’s Singapore and Germany facilities. This move will provide vital chips for the U.S. auto industry, bolstering its competitiveness and resilience.
New York State Pledges Additional Support
New York state has committed to providing an additional $550 million in support, further underscoring its commitment to fostering a thriving chipmaking ecosystem. GlobalFoundries also plans to build a new fab in Malta, New York, contingent upon market conditions and customer demand, to produce chips for automotive, AI, aerospace, and defense applications.
Securing America’s Technological Edge
GF CEO Thomas Caulfield emphasized the significance of this investment, stating that the company’s essential chips are crucial to U.S. economic, supply chain, and national security. The federal and state funding will ensure that customers have access to American-made chips, enabling them to succeed and thrive in an increasingly competitive landscape.
Commerce Department’s String of Successes
The Commerce Department has made significant strides in recent weeks, finalizing its first major award – a $6.6 billion government subsidy for Taiwan Semiconductor Manufacturing Co’s U.S. unit. This follows a series of notable allocations, including $6.4 billion for Samsung in Texas, $8.5 billion for Intel, and $6.1 billion for Micron Technology.
Leave a Reply