The Biden administration has announced a $1.5 billion award to GlobalFoundries, a semiconductor company, to support the expansion of its domestic chip production facilities in New York and Vermont.
This move is part of the government’s effort to revitalize semiconductor manufacturing in the United States under the 2022 CHIPS and Science Act. The law allows the government to invest over $52 billion to boost domestic chip production and advance research and development in the semiconductor industry.
Commerce Secretary Gina Raimondo emphasized the importance of the chips produced by GlobalFoundries, noting their role in powering military equipment, electric vehicles, and smartphones and improving internet connectivity.
Biden (Credits: Mint)
The government’s financial support includes both direct funding and loans, with the total investment expected to reach approximately $12.5 billion.
GlobalFoundries plans to use the funding to construct a new advanced chip factory in Malta, New York, expand production at its existing facility in Malta through a strategic agreement with General Motors and revitalize its plant in Burlington, Vermont. These projects are anticipated to create 1,500 manufacturing jobs and 9,000 construction jobs over the next decade.
Senate Majority Leader Chuck Schumer, who played a key role in crafting the legislation supporting semiconductor manufacturing, highlighted the critical role of semiconductors in the U.S. economy and national security, comparing them to food in terms of importance. Semiconductor chips are essential components in various products, including laptops, cars, home appliances, and medical equipment.
