GlobalFoundries secures $1.5B funding boost through U.S. CHIPS Act, propelling semiconductor innovation

GlobalFoundries receives significant funding from the U.S. Department of Commerce and the state of New York to upgrade its chip fabs and construct a new facility, with a focus on meeting the growing demand for U.S.-made chips and supporting the domestic semiconductor industry.

Significant funding agreement between U.S. Department of Commerce and GlobalFoundries
Over $12 billion investment in U.S. sites over the next decade
Creation of 1,500 manufacturing jobs and 9,000 construction jobs

The United States Department of Commerce and GlobalFoundries have announced a significant funding agreement. Under the CHIPS and Science Act, GlobalFoundries will receive $1.5 billion to upgrade its chip fabs in New York and Vermont, as well as construct a new fab module. Additionally, the state of New York will provide over $600 million in funding to support GlobalFoundries’ expansion and modernization efforts over the next decade.

Dr. Thomas Caulfield, president and CEO of GlobalFoundries, expressed his enthusiasm for the investments, stating that they will play a crucial role in making the U.S. semiconductor industry more globally competitive and resilient. He also emphasized the importance of increasing demand for U.S.-made chips and growing the domestic semiconductor workforce.

GlobalFoundries has outlined three projects that will be funded using the subsidies. Firstly, the company plans to expand its Fab 8 in Malta, NY, enabling it to produce chips for the automotive industry using existing technologies from its sites in Germany and Singapore. This expansion is necessary to meet the rising demand for chips in the evolving automotive sector and will ensure the continued utilization of GF’s flagship Malta fab.

In addition to the Malta expansion, GlobalFoundries intends to construct a new state-of-the-art fab on the same campus. This facility will cater to the anticipated demand for U.S.-made essential chips across various markets, including automotive, aerospace, defense, and AI. Over the next decade, this new fab, combined with the expansion of the existing production facility, is expected to triple Malta’s current capacity and increase wafer production to one million per year.

Lastly, GlobalFoundries plans to modernize its Essex Junction facility in Vermont by upgrading infrastructure and expanding capacity. This project will establish the first U.S. facility capable of high-volume manufacturing of next-generation gallium nitride (GaN) semiconductors. GaN chips are essential for applications such as electric vehicles, data centers, power grids, and communication technologies.

Overall, GlobalFoundries is investing over $12 billion in its two U.S. sites over the next decade. The company expects this investment to create more than 1,500 manufacturing jobs and approximately 9,000 construction jobs, providing a significant boost to the local economy.

These funding and expansion efforts align with GlobalFoundries’ commitment to enhancing the competitiveness and resilience of the U.S. semiconductor ecosystem. The company also aims to support sustainable operations and workforce development while meeting the growing demand for U.S.-made chips.

Industry leaders such as AMD, Qualcomm, General Motors, and Lockheed Martin have welcomed the grants, recognizing the importance of a robust U.S. semiconductor supply chain for emerging applications like software-defined vehicles, autonomous vehicles, 5G, AI, HPC, and edge computing.

Sources: U.S. Department of Commerce, GlobalFoundries

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