The U.S. Department of Commerce has selected GlobalFoundries to receive up to $1.5 billion in direct funding under the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication Facilities intended to bolster the semiconductor supply chain by supporting multiple of the company’s sites across the northeast U.S.
The National Institute of Standards and Technology said Wednesday the CHIPS investment is intended to boost U.S. competitiveness in the semiconductor industry by enhancing GF’s manufacturing facilities in New York and Vermont.
CHIPS Investment Meant to Boost Production, Employment Rate
The $1.5 billion fund will be included in GF’s planned $13 billion investment over the next 10 years or so for the modernization of the company’s existing sites in New York and Vermont. In addition, GF will build a new facility in New York. These facilities manufacture current-generation chips utilized for critical industries such as automotive, smart mobile, aerospace, defense and communications semiconductor technologies.
Aside from strengthening the nation’s supply chain resilience, the investment is expected to generate around 9,000 construction and 1,000 manufacturing jobs. It will also support the Upstate New York Investing in America Workforce Hub, which aims to train New Yorkers for jobs in the semiconductor supply chain.
“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,” said U.S. Secretary of Commerce Gina Raimondo.
Thomas Caulfield, president and CEO of GF, stated, “GF’s essential chips are at the core of U.S. economic, supply chain and national security. We greatly appreciate the support and funding from both the U.S. 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.”
