GlobalFoundries has entered into a preliminary agreement for $1.5 billion in funding as part of the CHIPS and Science Act
February 19, 2024, the Biden-Harris Administration announced a preliminary agreement with GlobalFoundries (GF) for approximately $1.5 billion in funding under the CHIPS and Science Act. This investment aims to enhance U.S. supply chain resilience, boost competitiveness in semiconductor production, and support economic and national security. The funding will facilitate the construction of a new state-of-the-art facility, expand capacity, and modernize GF’s manufacturing sites in New York and Vermont, focusing on automotive, communications, and defense semiconductors.
The funding will be allocated to three projects:
Malta, New York – New 300 mm Fab: A new fabrication facility expected to produce high-value technologies not currently made in the U.S., leveraging existing infrastructure to speed up the production start.
Malta, New York - Capacity Expansion for Automotive: The expansion of the existing Malta facility, including a strategic agreement with General Motors to secure a dedicated semiconductor supply, is expected to triple the campus's capacity over the next decade.
Burlington, Vermont – Fab Revitalization: Revitalization of a Burlington facility to commercialize new 200 mm technologies and become the first U.S. facility for high-volume manufacturing of next-generation Gallium Nitride on Silicon, crucial for electric vehicles, power grids, and advanced telecommunications. The Vermont site will also focus on sustainability, using 100% carbon-neutral energy and developing an onsite solar system.
The CHIPS and Science Act provides $52.7 billion for American semiconductor research, development, manufacturing, and workforce development. This includes $39 billion in manufacturing incentives, including $2 billion for the legacy chips used in automobiles and defense systems, $13.2 billion in R&D and workforce development, and $500 million to provide for international information communications technology security and semiconductor supply chain activities. It also provides a 25 percent investment tax credit for capital expenses for manufacturing of semiconductors and related equipment.
