GlobalFoundries and Biden-Harris Administration unite to fund vital chip manufacturing with CHIPS and Science Act.

February 20, 2024

The U.S. Department of Commerce has announced a $1.5 billion investment in GlobalFoundries, a leading semiconductor manufacturer, to expand its manufacturing capacity and capabilities for essential chips in industries such as automotive, aerospace, and defense.

  • Significant investment of $1.5 billion in GlobalFoundries, a leading semiconductor manufacturer
  • Expansion of manufacturing capacity and capabilities to produce essential chips for various industries
  • Creation of over 1,500 manufacturing jobs and approximately 9,000 construction jobs

The U.S. Department of Commerce has announced a significant investment of $1.5 billion in GlobalFoundries (GF), a leading semiconductor manufacturer, as part of the U.S. CHIPS and Science Act. This funding will enable GF to expand its manufacturing capacity and capabilities to produce essential chips for various industries, including automotive, IoT, aerospace, defense, and more.

GF, headquartered in New York, is the only U.S.-based pure play Foundry with a global manufacturing footprint. With facilities in the U.S., Europe, and Singapore, GF is well-positioned to meet the growing demand for semiconductor chips. This investment makes GF the first semiconductor pure play foundry to receive such a substantial award from the CHIPS and Science Act, which aims to strengthen American semiconductor manufacturing and national security.

The funding will support three major projects for GF. Firstly, GF plans to expand its existing fab in Malta, NY, by incorporating critical technologies already in use at its facilities in Singapore and Germany. This expansion is crucial for meeting the increasing demand for semiconductor chips in the automotive industry as vehicles become more reliant on electronic systems.

Secondly, GF will construct a new state-of-the-art fab on its Malta campus to meet customer demand for U.S.-made essential chips in various markets like automotive, aerospace, defense, and AI. With the semiconductor market expected to double over the next decade, this new fab will play a vital role in capturing a significant portion of the market share.

Lastly, GF will modernize its longest continuously operated fab in Essex Junction, Vermont. This project involves upgrading existing facilities and expanding capacity to establish the first U.S. facility capable of high-volume manufacturing of next-generation gallium nitride (GaN) semiconductors. GaN semiconductors are crucial for electric vehicles, power grids, data centers, 5G and 6G smartphones, and other critical technologies.

Over the next ten years, GF plans to invest more than $12 billion across its two U.S. sites through public-private partnerships with support from the federal and state governments, as well as its ecosystem partners and strategic customers. These investments are expected to create over 1,500 manufacturing jobs and approximately 9,000 construction jobs.

To support these projects, Governor Hochul has announced planned direct funding of $575 million for New York State Green CHIPS. Additionally, there will be $15 million in funding for NYS Workforce Development activities for GlobalFoundries and $30 million for NYS Infrastructure upgrades and Energy incentives provided by the New York Power Authority.

Dr. Thomas Caulfield, president and CEO of GF, expressed his appreciation for the proposed funding, stating that it will play a crucial role in strengthening the U.S. semiconductor ecosystem and making it more globally competitive and resilient. He emphasized the need to increase the demand for U.S.-made chips and grow the semiconductor workforce.

Secretary of Commerce Gina Raimondo highlighted the importance of semiconductors in various industries and their economic and national security implications. She mentioned the chip shortages during the COVID-19 pandemic that led to price increases for consumers and disrupted automobile manufacturing. The CHIPS and Science Act aims to onshore critical technologies like semiconductors to ensure a robust domestic chip supply chain.

Senator Schumer, who played a key role in creating the CHIPS and Science Act, expressed his satisfaction with GlobalFoundries’ plans for expansion and job creation. He emphasized the importance of investing in legacy chips that are essential for America’s auto industry and national defense to prevent future supply chain issues.

Governor Hochul praised the investment from GlobalFoundries, stating that it is a game-changer for New York State. She credited the pro-business policies, commitment to innovation, and highly skilled workforce for attracting high-tech manufacturers like GF to the state.

GF is also investing in initiatives to attract and cultivate semiconductor talent. The company recently announced a student loan repayment program to help employees and new recruits pay off student loan debt. GF is partnering with universities and community colleges across the country to build a diverse workforce and semiconductor talent pipeline.

The design and construction plans for GF’s expansions and modernizations will prioritize sustainable operations and comply with the company’s sustainability goals.

Various customers, government officials, and academia have celebrated the news of the funding. Dr. Lisa Su, Chair and CEO of AMD, commended GlobalFoundries for its commitment to strengthening the domestic chip supply chain. General Motors President Mark Reuss highlighted the importance of semiconductors in vehicles and expressed support for GF’s investment in New York.

Jim Taiclet, chairman, president, and CEO of Lockheed Martin, praised GF’s essential technology and its contribution to Lockheed Martin’s secure supply chain. Dr. Roawen Chen, Chief Supply Chain and Operations Officer at Qualcomm Technologies, Inc., welcomed the funding as it allows for increased chip production capacity.

Government officials, including Senator Peter Welch, Governor Phil Scott, Congressman Paul Tonko, and Chancellor John B. King Jr. of the State University of New York, expressed their excitement about the investment and its positive impact on regional economic development and workforce development.

This significant investment in GlobalFoundries is expected to bolster the U.S. semiconductor industry, strengthen national security, and create thousands of jobs. With the expansion of manufacturing capacity, GF will be well-equipped to meet the growing demand for essential chips in critical industries.

GlobalFoundries and Biden-Harris Administration unite to fund vital chip manufacturing with CHIPS and Science Act.


Background Information

About AMD: AMD, a large player in the semiconductor industry is known for its powerful processors and graphic solutions, AMD has consistently pushed the boundaries of performance, efficiency, and user experience. With a customer-centric approach, the company has cultivated a reputation for delivering high-performance solutions that cater to the needs of gamers, professionals, and general users. AMD's Ryzen series of processors have redefined the landscape of desktop and laptop computing, offering impressive multi-core performance and competitive pricing that has challenged the dominance of its competitors. Complementing its processor expertise, AMD's Radeon graphics cards have also earned accolades for their efficiency and exceptional graphical capabilities, making them a favored choice among gamers and content creators. The company's commitment to innovation and technology continues to shape the client computing landscape, providing users with powerful tools to fuel their digital endeavors.

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About Qualcomm: Qualcomm, a leading American global semiconductor and telecommunications equipment company, has played a pivotal role in shaping the modern technology landscape. Founded in 1985, Qualcomm has been at the forefront of innovation, particularly in the realm of mobile communications and wireless technology. The company's advancements have been instrumental in the evolution of smartphones, powering devices with their Snapdragon processors that deliver exceptional performance and efficiency. With a strong commitment to research and development, Qualcomm has enabled the growth of 5G technology, paving the way for faster and more connected experiences.

Qualcomm website  Qualcomm LinkedIn

Technology Explained

Foundry: A foundry is a dedicated manufacturing facility focused on producing semiconductor components like integrated circuits (ICs) for external clients. These foundries are pivotal in the semiconductor industry, providing diverse manufacturing processes and technologies to create chips based on designs from fabless semiconductor firms or other customers. This setup empowers companies to concentrate on innovative design without needing substantial investments in manufacturing infrastructure. Some well-known foundries include TSMC (Taiwan Semiconductor Manufacturing Company), Samsung Foundry, GlobalFoundries, and UMC (United Microelectronics Corporation).

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