GlobalFoundries awarded $1.5 billion in Chips Act funding
The US Department of Commerce has awarded GlobalFoundries up to USD 1.5 billion in direct funding to GF through the CHIPS and Science Act.
The award follows the previously signed preliminary memorandum of terms announced in February 2024 and will enable GF to expand its essential chip manufacturing and technology development in the US.
“The idea of strengthening U.S. semiconductor manufacturing has been five-plus years in the making. With bipartisan support, that idea evolved into the CHIPS and Science Act,” says Dr. Thomas Caulfield, president and CEO of GF, in a press release. “GF’s essential chips are at the core of U.S. economic, supply chain and national security. We greatly appreciate the support and funding from both the U.S. Government and the states of New York and Vermont, which we will use to ensure our customers have the American-made chips they need to succeed and win.”
The CHIPS Act funding will support three key projects at GlobalFoundries (GF):
- The expansion of GF's fab in Malta, New York. Adding critical technologies already in production at GF’s Singapore and Germany facilities.
- The modernisation and upgrading of the company's existing fab in Essex Junction, Vermont to boost capacity and become one of the leading sites for high-volume production of next-gen gallium nitride (GaN) semiconductors.
- In alignment with market conditions and customer demand, construct a new state-of-art fab on GF’s Malta, New York, campus to meet expected demand for US-made essential chips across a broad range of markets and applications.
The two New York-based projects are expected to triple the existing capacity of GF’s Malta campus over the next 10-plus years.
Overall, GF will invest over USD 13 billion in these projects, including USD 1.5 billion from the CHIPS Act and USD 550 million from New York State’s Green CHIPS Program. These investments are expected to create nearly 1,000 new manufacturing jobs.
