The United States Department of Commerce has announced a preliminary agreement with Global Foundries, aiming to bolster the domestic microchip supply. The agreement includes $1.5 billion in potential funding to support projects in New York and Vermont, expected to create approximately 10,500 jobs.
According to a press release by the Department of Commerce, the funding will be channeled directly through the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act. This act aims to enhance U.S. competitiveness in semiconductor production while also supporting economic and national security capabilities. The CHIPS and Science Act was enacted with the goal of strengthening U.S. supply chains and creating well-paid jobs for Americans. This is the third agreement that the Department of Commerce has made under this act.
"The CHIPS and Science Act set out to make the United States a leader in semiconductor R&D and manufacturing, and with this proposed CHIPS funding, GlobalFoundries could help realize this vision by modernizing and building new chip fabrication facilities to increase its capacity to make current-generation and mature-node chips in the United States while creating thousands of good jobs in New York and Vermont," said Under Secretary of Commerce for Standards and Technology and National Institute of Standards and Technology (NIST) Director Laurie E. Locascio. "By investing in domestic manufacturing capabilities, CHIPS for America is helping secure a stable domestic supply of chips that are found in everything from home electronics to advanced aerospace systems."
In another press release by the Department of Commerce, it was detailed that the $1.5 billion funding will be divided among three projects. The first project involves constructing a large-scale 300 mm fabrication facility in Malta, New York. This facility will produce high-value technologies currently unavailable within the United States. A strategic agreement has also been reached with General Motors, which will ensure a dedicated supply of essential semiconductor technologies and expand an existing fabrication facility in Malta, New York. These two investments are projected to triple the capacity of the Malta campus over the next decade and increase wafer production to 1 million per year once completed.
The third investment focuses on revitalizing an existing fabrication facility in Burlington, Vermont with the aim of commercializing new 200 mm technologies. The agreement also includes a $10 million allocation for dedicated workforce development funding for Global Foundries, intended to develop the local workforce.
