GlobalFoundries to Receive $1.5B in CHIPS Funding

The U.S. Department of Commerce announced it would provide semiconductor manufacturer GlobalFoundries with up to $1.5 billion through the CHIPS Incentives Program’s initiative for commercial fabrication facilities.

The investment looks to bolster domestic semiconductor manufacturing, reinforce the supply chain, and onshore critical technologies.

Assisting a $13B Investment

According to the Commerce Department, the funding will support GlobalFoundries’ planned $13 billion investment over the next decade in its Vermont and New York manufacturing facilities. The sites produce semiconductor technologies for the aerospace, defense, smart mobile, and automotive sectors.

Creating 10,000 Jobs

The plans include establishing a new facility in New York, upgrading and expanding an existing New York site, and modernizing operations in Vermont. The Commerce Department estimates that the projects will create about 1,000 manufacturing and 9,000 construction jobs.

GlobalFoundries is one of four companies outside China with that level of foundry capabilities and is the only one headquartered in the U.S.

$10B Awarded Thus Far

President Biden signed the CHIPS and Science Act into law in 2022, which provided the Commerce Department with $50 billion for programs designed to strengthen semiconductor development, research, and manufacturing. To date, Chips for America has awarded more than $10 billion and expects to create 125,000 jobs.