GlobalFoundries secures $1.5 billion in CHIPS Act funding for US expansion

The Biden administration is granting $1.5 billion in funding to GlobalFoundries to bolster semiconductor production under the CHIPS Act. The company, which spun out from AMD in 2009 and also has access to $1.6 billion in loans from the CHIPS Program Office, will split the cash between three projects.

First, GlobalFoundries will build a new fabrication facility in Malta, New York, where it aims to produce "high value technologies not currently available in the US," the Department of Commerce said in a statement. GlobalFoundries says it will use the facility to build chips for a range of industries and applications, including the automotive, aerospace, defense and AI spaces. Construction is expected to start in 2025.

Secondly, GlobalFoundries plans to expand its existing facility in Malta by incorporating tech from its Singapore and Germany plants with the aim of making more semiconductors for use in cars and trucks. This expansion, combined with the new fab, will enable GlobalFoundries to triple the capacity of its Malta campus over the next decade or so. Once all phases of both projects are complete, GlobalFoundries expects to increase wafer production to 1 million per year across the plants.

Last but not least, the remaining funding will go toward modernizing an existing fab in Burlington, Vermont. The aim is to build the first US plant capable of high-volume manufacturing of next-generation gallium nitride on silicon semiconductors for electric vehicles, smartphones, the power grid and other key technologies. The plant will use entirely carbon-free energy, while an on-site solar system will provide up to nine percent of annual power needs.

Through public-private partnerships, GlobalFoundries plans to invest more than $12 billion into the sites over the next 10-plus years. New York is also supporting the Malta projects with $575 million in performance-based Green CHIPS tax credits, while the New York Power Authority is investing at least $30 million.

The Department of Commerce says the three projects are expected to create 1,500 manufacturing positions and around 9,000 construction jobs over the next 10 years. The positions are slated to pay fair wages and offer benefits including childcare.

Aligned with the broader aims of the CHIPS Act, the investment is designed to improve domestic semiconductor supply chains. GlobalFoundries says that there are only four companies that can deliver "current and mature foundry capabilities" at its scale outside of China, and it's the only one of those based in the US.

Last year, the company reached a direct supply agreement with GM to provide the automaker with US-built processors and help it avoid the kinds of chip shortages that caused a significant slowdown in car manufacturing in the midst of the COVID-19 pandemic. GlobalFoundries agreed to create an exclusive capacity corridor for GM chips. GlobalFoundries struck a chip deal with Ford in 2021 as well.

This article originally appeared on Engadget at https://www.engadget.com/globalfoundries-secures-15-billion-in-chips-act-funding-for-us-expansion-172754429.html?src=rss https://www.engadget.com/globalfoundries-secures-15-billion-in-chips-act-funding-for-us-expansion-172754429.html?src=rss
Établi 1y | 19 févr. 2024, 18:30:11


Connectez-vous pour ajouter un commentaire

Autres messages de ce groupe

Apple, Mastercard and Visa's antitrust lawsuit over payments has been dismissed

Apple, Mastercard and Visa have successfully dodged

10 juil. 2025, 23:20:16 | Engadget
Amazon Prime Day vacuum deals discount the Dyson V15 Detect Plus by $180

Amazon Prime Day has returned for the summer, making it a good time to check to see if any big-ticket gadgets on yo

10 juil. 2025, 23:20:14 | Engadget
You can (finally) buy the Nintendo Switch 2 on Amazon (but don't expect a Prime Day deal)

The scramble to buy the first wave of Nintendo Switch 2 gaming consoles left a lot of fans in the lurch.

10 juil. 2025, 23:20:13 | Engadget
Sony will have gorgeous PlayStation 5 bundles for Ghost of Yōtei

Ghost of Yōtei is one of Sony's bigger AAA releases this year, and the company is marking the upcoming launch with gorgeous

10 juil. 2025, 23:20:12 | Engadget
The Naya Create modular keyboard is now available for purchase

The Naya Create modular keyboard is now available for general purchase after being an exclusive for Kickstarter backers. It features a spli

10 juil. 2025, 21:10:22 | Engadget
Indeed and Glassdoor are cutting more than 1,000 jobs

Job-hunting platforms Indeed and Glassdoor are cutting their workforce, and it may be thanks to good old artificial intelligence. About

10 juil. 2025, 21:10:19 | Engadget