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

The Biden administration is providing $1.5 billion in funding to strengthen semiconductor manufacturing under . The company, which split from AMD in 2009 and received a $1.6 billion loan from the CHIPS Program Office, will split the money between three projects.

First, GlobalFoundries will build a new manufacturing facility in Malta, New York, where it aims to produce “high-value technologies not currently available in the United States,” the Commerce Department said in a statement. it will use the facility to create chips for a range of industries and applications, including automotive, aerospace, defense and artificial intelligence. Construction is expected to start in 2025.

Second, GlobalFoundries plans to expand its existing facility in Malta by combining technology from its Singapore and German plants to produce more semiconductors for use in cars and trucks. This expansion, along with the new fab, will allow GlobalFoundries to triple the capacity of the Malta campus over the next ten years. After all phases of both projects are completed, GlobalFoundries expects to increase wafer production across the plants to 1 million per year.

Finally, the remaining funding will be used to modernize the existing fab in Burlington, Vermont. The goal is to build the first U.S. plant capable of producing high-volume next-generation gallium nitride on silicon semiconductors for electric cars, smartphones, the power grid and other key technologies. The plant will use completely carbon-free energy, with an on-site solar system supplying nine percent of its annual energy needs.

Through the public-private partnership, GlobalFoundries plans to invest more than $12 billion in the sites over the next 10 years. New York too Malta projects $575 million in performance-based Green CHIPS tax credits, with the New York Energy Department investing at least $30 million.

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

Consistent with the broader goals of the CHIPS Act, the investment is intended to improve domestic semiconductor supply chains. GlobalFoundries says there are only four companies outside of China that can provide “current and mature foundry capabilities” at its scale, and it is the only one based in the United States.

Last year the company to provide the automaker with U.S.-made processors and help avoid chip shortages that have caused a significant slowdown in auto production amid the COVID-19 pandemic. GlobalFoundries has agreed to create an exclusive capacity corridor for GM chips. GlobalFoundries Also in 2021.

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