GlobalFoundries confirms $1.5b CHIPS Act funding
GlobalFoundries and the US Department of Commerce have announced an award of up to $1.5 billion in direct funding to GF through the CHIPS and Science Act.
The award follows the previously signed preliminary memorandum of terms announced in February 2024 and will enable GF to expand its chip manufacturing and technology development in the US, across a range of end-markets including automotive, smart mobile devices, IoT, data centres, and aerospace and defence.
One of the key project's GF’s CHIPS award will support is modernisation of GF’s existing fab in Essex Junction, Vermont, to expand production capacity and create one of the world’s leading facilities capable of high-volume manufacturing of next-generation GaN semiconductors for use in electric vehicles, data centres, IoT, smartphones and other critical applications.
Money will also go towards expansion of GF’s existing Malta, New York, fab by adding technologies already in production at GF’s Singapore and Germany facilities, to enable a secure and reliable supply of domestically manufactured essential chips for the US auto industry.
Funding may also go towards the construction of a new state-of-art fab on GF’s Malta, New York, campus to meet expected demand for US-made essential chips across a broad range of markets and applications including automotive, AI in the data centre and at the edge, as well as aerospace and defence.
“The idea of strengthening US semiconductor manufacturing has been five-plus years in the making. With bipartisan support, that idea evolved into the CHIPS and Science Act,” said Thomas Caulfield, president and CEO of GF. “GF’s essential chips are at the core of US economic, supply chain and national security. We greatly appreciate the support and funding from both the US 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.”
In aggregate, these projects represent more than $13 billion of investment over the next 10-plus years across GF’s two US sites. This investment includes the $1.5 billion CHIPS and Science Act award, more than $550 million in support from the New York State Green CHIPS Program, as well as funding and support from Vermont, GF ecosystem partners and key strategic customers, and other incentives.
Combined, these investments are expected to create close to 1,000 direct manufacturing jobs and more than 9,000 construction jobs over the life of these projects.
GF’s fabs in New York and Vermont are both Trusted Foundry accredited and manufacture secure chips in partnership with the US government.
