US Government Invests $1.5 Billion in Domestic Semiconductor Supply Chains to Strengthen National Security and Create Jobs.
The US government is making major investments in domestic semiconductor manufacturing capabilities.
On Monday, the Biden administration announced it is awarding $1.5 billion to GlobalFoundries, the world’s third-largest contract chipmaker, to expand production in New York and Vermont.
This grant and available loans of $1.6 billion aim to strengthen US supply chains and reduce reliance on foreign chip manufacturers.
________________________________________________________________________
- $1.5 billion awarded to GlobalFoundries to expand US semiconductor manufacturing capabilities.
- New facilities in NY and VT are expected to create over 10,000 high-paying American jobs.
- Investments strengthen national security by enabling domestic production of critical auto, defense, and telecom chips.
________________________________________________________________________
US Government Invests $1.5 Billion in Domestic Semiconductor Supply Chains to Strengthen National Security and Create Jobs.
The funding will allow GlobalFoundries to construct a new semiconductor fabrication facility in Malta, NY, and expand existing operations in Malta and Burlington, VT.
These projects are expected to generate over 10,000 high-paying jobs over the next decade, providing opportunities for American workers in the critical semiconductor industry.
During a press briefing, Commerce Secretary Gina Raimondo emphasized the national security implications of domestic chip production.
The specialized chips GlobalFoundries will manufacture are used in defense technologies like satellites and space communications.
They also have everyday applications in cars, Wi-Fi, and cell phones.
The COVID-19 pandemic exposed vulnerabilities in global supply chains when chip shortages idled auto plants and prevented millions of cars from being built.
Raimondo said the new GlobalFoundries facility in Malta will produce chips not currently made anywhere in the US, helping avoid similar shortages in the future.
An expanded plant in Burlington will be the first US fab capable of high-volume manufacturing of next-gen gallium nitride semiconductors.
These advanced chips power electric vehicles, the electrical grid, smartphones, and other critical technologies.
The GlobalFoundries investment is the third major funding announcement under the CHIPS and Science Act, which provides $39 billion to invigorate domestic semiconductor manufacturing.
As Raimondo said, “We’re just getting started.”
The goal is to reduce reliance on foreign chip suppliers and build a resilient US semiconductor supply chain for the 21st-century economy.
GlobalFoundries CEO Thomas Caulfield also emphasized the need to spur demand for US-made chips, grow the American semiconductor workforce, and compete globally.
The US government’s substantial investment demonstrates a commitment to lead in the technologies and industries of the future.
