GlobalFoundries Gets $1.5 Billion Federal Funding

GlobalFoundries Gets $1.5 Billion Federal Funding

GlobalFoundries was awarded $1.5 billion in funding by the US government through the CHIPS and Science Act. The company will use the funds to expand existing manufacturing capacity in Vermont and New York, as well as create a new facility in the latter.

In the new facility, the chipmaker will manufacture next-generation gallium nitride semiconductors for use in electric vehicles, power grids, data centers, and 5G and 6G smartphones, among others. Sites will also be used to produce chips essential for automotive, IoT, AI, and other vital areas.

Longer-term, GlobalFoundries said it expects to invest more than $12 billion over more than ten years through public-private partnerships, with support from central and state governments, and ecosystem partners. Thomas Caulfield, president and CEO of GlobalFoundries, said the investment will play an important role in making the US semiconductor sector more globally competitive and resilient.

“With new onshore capacity and technology on the horizon, as an industry, we now need to turn our attention to increasing the demand for US-made chips and to growing our talented US semiconductor workforce,” Caulfield said.