In a strategic move to fortify domestic semiconductor production and bolster supply chains, the Biden administration announces a substantial $1.5 billion award to GlobalFoundries. The world’s third-largest contract chipmaker is set to construct a new semiconductor production facility in Malta, New York, while expanding existing operations in Malta and Burlington, Vermont, according to a preliminary agreement with the Commerce Department.
This significant grant, accompanied by $1.6 billion in available loans, is expected to catalyze an impressive $12.5 billion in overall potential investment across the two states, focusing on enhancing chip production and addressing vulnerabilities laid bare by the COVID-19 pandemic. Officials anticipate the creation of over 10,000 jobs over the next decade, with a commitment to fair wages and benefits, including childcare support.
Commerce Secretary Gina Raimondo emphasizes the critical nature of the chips produced in these facilities, underscoring their significance in national security. These minuscule chips, comparable to a fingernail’s size, play pivotal roles in satellite communication, space technologies, defense applications, and everyday functionalities like automotive safety features and connectivity in Wi-Fi and cellular networks.
GlobalFoundries CEO Thomas Caulfield stresses the industry’s need to escalate efforts in increasing the demand for U.S.-made chips and cultivating a robust domestic semiconductor workforce. The government’s investment aligns with the CHIPS and Science Act, demonstrating a commitment to addressing semiconductor manufacturing challenges on multiple fronts.
With the Malta facility expansion securing chip supplies for vital sectors, including automotive manufacturing, recent collaboration with General Motors further solidifies the commitment to averting chip shortages that hampered production during the pandemic. The Malta facility will produce high-value chips, filling a void in U.S. manufacturing capabilities.
Simultaneously, the revamped Burlington facility is positioned to become the first U.S. site equipped for high-volume manufacturing of next-gen gallium nitride on silicon semiconductors, essential for electric vehicles, the power grid, and smartphones.
Commerce Secretary Raimondo concludes, hinting at more funding announcements in the pipeline, underscoring the government’s commitment to elevating semiconductor manufacturing capabilities and securing resilient supply chains.