Winning the $1.5 billion US government subsidy, GlobalFoundries is looking to power industries like automotive, IoT, and defence with advanced chip manufacturing in New York and Vermont.
On Wednesday, the US Commerce Department announced that it has finalised a $1.5 billion government subsidy for GlobalFoundries to expand its semiconductor production facilities in Malta, New York, and Vermont.
The expansion is set to support industries including automotive, smart mobile devices, Internet of Things (IoT), data centres, and aerospace and defence.
This move completes a preliminary award given in February, following the company’s announcement of a $13 billion investment over the next decade in its U.S. manufacturing sites.
Emphasising the department’s urgency in completing as many final agreements as possible under the $52.7 billion ‘CHIPS and Science’ programme, Commerce Secretary Gina Raimondo noted that the department is working diligently to sanction these agreements before the Biden administration concludes on January 20.
The subsidy will facilitate the expansion of GlobalFoundries’ Malta, New York, facility by adding technologies already utilised in the company’s Singapore and Germany plants. These technologies will help provide chips for the U.S. automotive industry. In addition to federal funding, New York State has pledged $550 million to support the project.
GlobalFoundries also plans to build a new semiconductor fabrication plant in Malta, New York, following market conditions and customer demand. This new facility will focus on producing chips for the automotive, AI, aerospace, and defence industries.
GlobalFoundries’ CEO, Thomas Caulfield, stated that the company’s essential chips are vital to the U.S. economy, supply chains, and national security. In this case, both state and federal funding would play a crucial role in ensuring the continued availability of American-made chips for their customers.
Last week, the Commerce Department also finalised its first major subsidy award, granting $6.6 billion to Taiwan Semiconductor Manufacturing Co’s (TSMC) U.S. unit. This comes just weeks before President-elect Donald Trump, who has criticised the programme, takes office.
Additionally, the Department has allocated $36 billion for chips-related projects, including $6.4 billion for Samsung in Texas, $8.5 billion for Intel, and $6.1 billion for Micron Technology.
Earlier this month, the US government fined GlobalFoundries $500,000 for unlawfully shipping chips to an affiliate of the blacklisted Chinese chipmaker SMIC. GlobalFoundries expressed regret over the unintended incident.
