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The company plans to enhance semiconductor production for the automotive, aerospace, and AI sectors with the cash infusion.
The Biden administration has announced that it will provide $1.5 billion in funding to semiconductor manufacturer GlobalFoundries, as part of the CHIPS Act. GlobalFoundries, which was spun out from AMD in 2009, will use the funding for three projects.
Firstly, the company plans to construct a new fabrication facility in Malta, New York, with the goal of producing advanced technologies that are currently not available in the US. The facility will enable GlobalFoundries to manufacture chips for various industries, including automotive, aerospace, defense, and AI. Construction is expected to begin in 2025.
Secondly, GlobalFoundries intends to expand its existing facility in Malta by incorporating technology from its plants in Singapore and Germany. This expansion, along with the new fabrication facility, will triple the capacity of the Malta campus over the next decade. The company aims to increase wafer production to 1 million per year across all its plants.
Lastly, a portion of the funding will be used to modernize an existing fab in Burlington, Vermont. This project aims to establish the first US plant capable of high-volume manufacturing of next-generation gallium nitride on silicon semiconductors. The plant will utilize carbon-free energy sources and incorporate an on-site solar system.
These projects, in partnership with public and private entities, will involve an investment of over $12 billion over the next 10 years. The state of New York is also supporting the Malta projects with $575 million in performance-based Green CHIPS tax credits, and the New York Power Authority is investing a minimum of $30 million.
The Department of Commerce expects these projects to create 1,500 manufacturing positions and approximately 9,000 construction jobs over the next decade. The investment aligns with the objectives of the CHIPS Act, which aims to strengthen domestic semiconductor supply chains. GlobalFoundries is one of the few companies outside of China that can provide current and mature foundry capabilities, and it is the only one based in the US.
In addition to this funding, GlobalFoundries has recently secured direct supply agreements with General Motors and Ford to address the chip shortages that have impacted the automotive industry.
External Links:
– GlobalFoundries: https://gf.com/gf-press-release/globalfoundries-and-biden-harris-administration-announce-chips-and-science-act-funding-for-essential-chip-manufacturing/
– Governor of New York supporting the Malta projects: https://www.governor.ny.gov/news/governor-hochul-celebrates-globalfoundries-116-billion-investment-expand-semiconductor