The Biden administration is providing $1.5 billion in funding to bolster semiconductor production under the . The company, which was spun off from AMD in 2009 and also has access to $1.6 billion in loans from the CHIPS Program Office, will split the cash among 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. will use the facility to build chips for a variety of industries and applications, including the automotive, aerospace, defense and artificial intelligence spaces. Construction is expected to begin in 2025.
Secondly, GlobalFoundries plans to expand its existing facilities in Malta by incorporating technology from its plants in Singapore and Germany with the aim of manufacturing more semiconductors for use in cars and trucks. This expansion, combined with the new factory, will allow GlobalFoundries to triple the capacity of its Malta campus over the next decade or so. Once all phases of both projects are completed, GlobalFoundries expects to increase wafer production to 1 million per year across all plants.
Last but not least, the remaining funds will go toward modernizing an existing factory in Burlington, Vermont. The goal is to build the first U.S. plant capable of high-volume manufacturing of next-generation gallium nitride on silicon semiconductors for electric vehicles, smartphones, the power grid and other key technologies. The plant will use completely carbon-free energy, while an on-site solar system will provide up to nine percent of annual energy needs.
Through public-private partnerships, GlobalFoundries plans to invest more than $12 billion in the sites over the next 10 years. New York is also Malta projects $575 million in performance-based Green CHIPS tax credits, while the New York Power Authority is investing at least $30 million.
The Commerce Department says the three projects are expected to create 1,500 manufacturing jobs and about 9,000 construction jobs over the next 10 years. The positions are technology/us-awards-15-bln-globalfoundries-domestic-semiconductor-production-2024-02-19/?taid=65d36f501ba9b1000160fc0a&utm_campaign=trueAnthem:+Trending+Content&utm_medium=trueAnthem&utm_source=twitter” rel=”nofollow noopener” target=”_blank” data-ylk=”slk:slated;elm:context_link;elmt:doNotAffiliate;cpos:5;pos:1;itc:0;sec:content-canvas”> pay fair wages and offer benefits, including child care.
Aligned with the broader goals of the CHIPS Act, the investment is designed to improve domestic semiconductor supply chains. GlobalFoundries says there are only four companies that can offer “current, mature foundry capabilities” at its scale outside of China, and it is the only one based in the US.
Last year, the company to provide the automaker with American-made processors and help it avoid the types of chip shortages that caused a significant slowdown in auto manufacturing amid the COVID-19 pandemic. GlobalFoundries agreed to create a dedicated capacity broker for GM chips. GlobalFoundries also in 2021.
