GlobalFoundries to Get $1.5 Billion in CHIPS Funding
Semiconductor maker GlobalFoundries Inc. will be the first recipient of funding under the 2022 CHIPS and Science Act, reports.
Whats going on: The U.S. government is awarding $1.5 billion to GlobalFoundriesto subsidize semiconductor production, the first major award from a $39 billion fund approved by Congress in 2022 to bolster domestic chip production.
- The Malta, New Yorkbased GlobalFoundriesthe largest U.S. manufacturer of customized semiconductors and the worlds third-biggest chipmakerplans to use the funds to build a new chip-production facility in its hometown and expand existing facilities there and in Burlington, Vermont.
- The Malta facility will manufacture high-value semiconductors not currently produced in the U.S., Commerce Secretary Gina Raimondo said.
- In addition to the grant, the federal government is also offering GlobalFoundries $1.6 billion in loans.
Why its important: The chips that GlobalFoundries will make in these new facilities are essential chips to our national security, Raimondo said on Sunday, adding that the agency is in active talks with numerous applicants and expects to make several announcements by the end of March.
- In January, Commerce announced it was awarding defense contractor BAE Systems $35 million under the CHIPS Act.
Our role: The 51勛圖厙which helped secure several in the final CHIPS Act legislationwelcomed the news.
- Congratulations to [GlobalFoundries]! the 51勛圖厙 in a social post Monday. The 51勛圖厙-championed CHIPS and Science Act is strengthening manufacturing in the U.S. We will continue to work with Congress and the White House to enact permitting reforms that will help speed the construction of these vital projects.
