The Biden-Harris administration has earmarked a $1.5 billion investment to bolster US semiconductor production, with a focus on expanding GlobalFoundries’ (GF) facilities in New York and Vermont. This initiative, part of the CHIPS and Science Act, aims to enhance domestic chip manufacturing capabilities, particularly for critical sectors like automotive, IoT, and defense.
Announced on February 19, 2024, by the US Department of Commerce, the grant to GF is poised to create over 10,000 jobs in the semiconductor sector and bolster hundreds of thousands of additional jobs across the US economy. Leveraging $1.6 billion in accessible loans and potential private funding totaling $12.5 billion, the investment underscores the government’s commitment to fortifying the nation’s semiconductor supply chain.
As the world’s third-largest contract chip manufacturer and the sole US-based pure-play foundry, GF plays a pivotal role in the semiconductor ecosystem. With strong ties to key industries and strategic partnerships with leading companies like AMD and Qualcomm, GF’s expansion will bolster chip production for critical applications, safeguarding national security interests and economic resilience.
The funding infusion will enable GF to scale up the production of high-value chips vital for various sectors, including automotive, telecom, aerospace, and defense. This move aligns with the broader initiative to strengthen domestic semiconductor manufacturing and bolster competitiveness vis-à-vis global counterparts, particularly China.