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The Biden administration announced on Monday that the US government will award $1.5 billion to GlobalFoundries (GFS.O) to bolster domestic semiconductor production, aiming to enhance national supply chains.
Under a preliminary agreement with the Commerce Department, GlobalFoundries, the world's third-largest contract chipmaker, will establish a new semiconductor production facility in Malta, New York, and expand existing operations in Malta and Burlington, Vermont.
The grant will be complemented by $1.6 billion in available loans, with the funding projected to catalyse $12.5 billion in overall potential investment across both states.
According to officials from the Biden administration, the projects, funded through the CHIPS and Science Act, are expected to create over 10,000 jobs over a decade, offering fair wages and benefits including childcare.
Commerce Secretary Gina Raimondo emphasised the critical role of the chips manufactured by GlobalFoundries in national security, citing their usage in satellite and space communications, defence, automotive safety systems, and everyday applications like Wi-Fi and cellular connections.
GlobalFoundries' President and CEO, Thomas Caulfield, highlighted the need to boost demand for US-made chips and cultivate a skilled domestic semiconductor workforce.
Raimondo emphasised that this announcement is the government's third under the CHIPS initiative, with more funding awards expected in the coming weeks and months from the $39 billion programme aimed at bolstering semiconductor manufacturing.
The expansion in Malta will ensure a stable chip supply for auto suppliers and manufacturers, including General Motors (GM), helping to prevent chip shortages that disrupted automotive production during the COVID-19 pandemic.
Raimondo emphasised that the new facility in Malta will produce high-value chips currently not manufactured in the United States. Additionally, the renovated facility in Burlington will become the first US site capable of high-volume manufacturing of next-generation gallium nitride on silicon semiconductors, used in electric vehicles, the power grid, and smartphones.
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