GlobalFoundries secures $1.5 billion funding from CHIPS Act for semiconductor projects in NY and VT, boosting U.S. supply chain and national security.
GlobalFoundries (GF) and U.S. Department of Commerce have announced award agreement of up to $1.5 billion on CHIPS Act Funding for three projects, two in NY and one in VT.
“The concept of boosting U.S semiconductor production has been, in progress for over five years now ” mentioned Dr. Thomas Caulfield who serves as the president and CEO of GF company.” Backed by both parties’ approval it eventually transformed into the CHIPS and Science Act ” he added.” The vital chips produced by GF play a role, in the stability, supply chain and national security of the United States. “We are very thankful for the assistance and financial backing we have received from the U.S Government, as the states of New York and Vermont to guarantee that our customers have access, to high quality American made chips that will help them achieve success and emerge victorious.”
Separately, GF secured $550M from New York state, which is mostly in the form of tax credits, as well as additional funding from Vermont. Companies applying for the federal program are also required to shore up support from state governments.
GlobalFoundries’ CHIPS and Science Act funding will support three major projects;
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The expansion of GlobalFoundries, existing Fab in Malta, New York.
Here they will add 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 U.S. auto industry.
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Modernization and upgrading of GF’s existing fab in Essex Junction, Vermont.
To enhance production capacity and establish a world-class facility for high-volume manufacturing of next-generation gallium nitride (GaN) semiconductors, supporting critical applications such as electric vehicles, data centers, IoT devices, smartphones, and more.
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Construction of a new state-of-art fab on GF’s Malta, New York, campus
This will enable GF to address the anticipated demand for U.S.-made essential chips across diverse markets and applications, including automotive, AI in data centers and edge computing, as well as aerospace and defense sectors.
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Over the decade or more the two projects based in New York are set to triple the capacity of GFs Malta campus, in line with anticipated market needs and customer requests. Building the fab will take advantage of the infrastructure and ecosystem in place at the GF site allowing for a swift and effective transition from construction, to manufacturing.
The total cost of the three projects
These projects collectively account for, over $13 billion in investments scheduled for the decade at GFs two locations. The funding encompasses the $1.5 billion CHIPS and Science Act grant in addition to over $550 million contributed by the New York State Green CHIPS Program along with backing from Vermont and GFs network of partners and key customers, as various incentives.
GlobalFoundries Projects in NY and VT: Jobs
These investments are anticipated to result in 1,000 manufacturing positions and, over 9,000 construction jobs, throughout the duration of these projects.
GF’s facilities, in New York and Vermont have received Trusted Foundry accreditation. Produce chips in collaboration, with the U.S government.
GF plans to invest in fostering semiconductor talent in New York and Vermont through initiatives, like curriculum development and internship programs to nurture a workforce for the future.
In line, with GF’s enduring dedication to our communities and the environment GFs blueprints for expanding and updating facilities, in New York and Vermont will embody the company’s sustainability objectives for operations.
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GlobalFoundries Secures funding from CHIPS and Science Act for Three Projects
Projects Overview
Funding Award: Up to $1.5 Billion from CHIPS and Science Act
Additional State Funding: $550 Million from New York State
Total Investment: Over $13 Billion across decade-long projects
Key Project Components
1. Malta, NY Fab Expansion
Location: Existing GlobalFoundries Fab in Malta, New York
Objectives:
Add technologies from Singapore and Germany facilities
Secure domestic chip supply for U.S. auto industry
Capacity Increase: Projected to triple campus capacity
2. Essex Junction, VT Fab Modernization
Location: GlobalFoundries Facility in Essex Junction, Vermont
Focus Areas:
Enhance production capacity
Develop world-class gallium nitride (GaN) semiconductor manufacturing
Key Applications:
Electric vehicles
Data centers
IoT devices
Smartphones
3. New State-of-the-Art Fab Construction
Location: Malta, New York Campus
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Strategic Markets:
Automotive
AI and Data Centers
Edge Computing
Aerospace and Defense
Economic Impact
Job Creation:
Manufacturing Positions: 1,000
Construction Jobs: Over 9,000 throughout project duration
Investment Sources:
CHIPS and Science Act Grant: $1.5 Billion
New York State Green CHIPS Program: $550 Million
Vermont State Support
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GlobalFoundries secures funding from CHIPS Act for Projects in NY and VT: Strategic Advantages
Trusted Foundry Accreditation in both NY and VT facilities
Collaboration with U.S. Government
Sustainable facility design
Workforce development initiatives
Workforce Development Plans
Curriculum development programs
Internship opportunities
Talent cultivation in New York and Vermont
Sustainability Commitment
Facility expansions aligned with company’s environmental objectives
Planned to have sustainable operations design
Project Timeline
Duration: Decade-long investment and expansion
Phased Implementation: Gradual capacity increase and facility upgrades
Project Status
Funding Secured
Initial Implementation Phases Underway
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