The US Commerce Department has awarded up to $1.5bn in direct funding for GlobalFoundries to boost production of semiconductors.

This direct funding is part of the CHIPS Incentives Programme’s Funding Opportunity for Commercial Fabrication Facilities.

The award follows a preliminary memorandum of terms announced in February 2024, and the completion of the Department’s due diligence.

This investment will support GlobalFoundries' planned $13bn investment in its US manufacturing sites over the next decade.

The investment includes a new facility in New York, the expansion and modernisation of an existing New York facility, and the modernisation of operations in Vermont.

This initiative is expected to create approximately 9,000 construction jobs and 1,000 manufacturing jobs across all of the sites.

US Secretary of Commerce Gina Raimondo said: “By investing in GF’s domestic manufacturing capabilities, we are helping to secure a stable domestic supply of chips that are found in everything from home electronics to advanced weapons systems.

“Thanks to President Biden’s leadership and because of CHIPS for America, we are strategically strengthening every part of the semiconductor supply chain to ensure we meet our national security objectives and have the ability to out-compete and out-innovate the rest of the world.”

The Department's investment aims to increase domestic manufacturing capacity for semiconductors, while strengthening supply chain resilience.

GF president and CEO Dr Thomas Caulfield said: “The idea of strengthening US semiconductor manufacturing has been five-plus years in the making. With bipartisan support, that idea evolved into the CHIPS and Science Act.

“GF's essential chips are at the core of US economic, supply chain and national security. We greatly appreciate the support and funding from both the US Government and the states of New York and Vermont, which we will use to ensure our customers have the American-made chips they need to succeed and win.”

"GlobalFoundries awarded $1.5bn subsidy" was originally created and published by Verdict, a GlobalData owned brand.

 

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