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GlobalFoundries (NASDAQ:GFS) will receive a $1.5B grant from the U.S. government to boost domestic semiconductor manufacturing, as part of the U.S. CHIPS and Science Act.
Through the funding, GlobalFoundries will expand its existing fab in Malta, New York by adding technologies already in production in the company’s Singapore and Germany facilities geared towards enabling the U.S. auto industry.
The company will also construct a new state-of-art fab on the Malta campus to meet expected customer demand for U.S.-made chips for applications including automotive, aerospace, defense and AI.
In addition, GlobalFoundries will modernize its facility in Essex Junction, Vermont.
Based on demand, the company plans to invest over $12B over the next 10 plus years across its two U.S. sites through public-private partnerships and funding from governments.
In support of the two Malta, New York projects, Governor Hochul announced $575M in planned direct funding for New York State Green CHIPS, and a $15M funding for NYS Workforce Development activities for GlobalFoundries. In addition, $30M for NYS Infrastructure upgrades and Energy incentives provided by the New York Power Authority.
The company said that the investments are expected to create over 1,500 manufacturing jobs and about 9,000 construction jobs over the life of the projects.
“This will triple production capacity of GlobalFoundries’ already massive campus in Saratoga County, spur billions in public-private investment, and help bring thousands of new good-paying manufacturing and union construction jobs to the Capital Region,” said Senator Chuck Schumer
Last week, it was reported that Intel (INTC) was in discussions with the Biden administration to get over $10B in subsidies for making semiconductors.
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