The US government's$1.5 billion investment will fund the expansion of GlobalFoundries' (GF) New York plant, including the construction of a new state-of-the-art semiconductor fab and the renovation of its Vermont installation, providing reliable capacity for advanced chip production for automotive and other key sectors.

The Biden administration announced on 19 February 2024, that the US Department of Commerce is granting$1.5 billion to GlobalFoundries (GF) to boost domestic semiconductor production. This funding is part of the CHIPS and Science Act and will support GF projects in New York and Vermont, creating more than 10,000 jobs in the semiconductor ecosystem and supporting hundreds of thousands of additional US jobs throughout the economy. The award will be backed by$1.6 billion in accessible loans, with a total potential investment of$12.5 billion combining private funding across the two states.

Why does it matter?

GF is the world's third-largest contract chip manufacturer, the only US-based pure-play foundry, and a strategic supplier to AMD and Qualcomm. With a global footprint spanning the US, Europe, and Singapore, GF also maintains strong ties with automotive manufacturers and suppliers, including General Motors.

The funding will be used to securely produce more high-value chips for automotive, IoT, telecom, aerospace, satellite, defense, and other essential industries for the US economy and national security.
The commerce department intends to make more funding awards in the next few months as part of Washington's multi-billion-dollar program to strengthen domestic semiconductor production and compete with Beijing.