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

February 25, 2024

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


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.

AMD website  AMD LinkedIn

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

HPC: HPC, or High Performance Computing, is a type of technology that allows computers to perform complex calculations and process large amounts of data at incredibly high speeds. This is achieved through the use of specialized hardware and software, such as supercomputers and parallel processing techniques. In the computer industry, HPC has a wide range of applications, from weather forecasting and scientific research to financial modeling and artificial intelligence. It enables researchers and businesses to tackle complex problems and analyze vast amounts of data in a fraction of the time it would take with traditional computing methods. HPC has revolutionized the way we approach data analysis and has opened up new possibilities for innovation and discovery in various fields.

Leave a Reply