The U.S. Department of Commerce will provide $1.5 billion to build and expand GlobalFoundries semiconductor facilities in New York and Vermont.
The funding is part of a continuing effort to on-shore semiconductor manufacturing capacity to the United States and reduce reliance on China. It is third award under the semiconductor incentives program established by Congress in 2022 through the CHIPS and Science Act with previous awards going to modernize and expand facilities in Colorado, Oregon and New Hampshire.
According to press statements by DoC and GF, the funds would help secure the supply chain for critical automotive semiconductors, as well as establish new leading-edge manufacturing capacity that is currently only located overseas.
The award will support creation of a new funding new state-of-the-art 300 mm fabrication facility at the GF at Malta, New York and expand and modernize existing GF manufacturing sites in New York and Vermont, which produce essential automotive, communications, and defense semiconductor technologies. This expansion will also bolster the supply chain for General Motors with whom GF entered into a strategic long-term supply agreement last year.
The proposed projects would create approximately 1,500 manufacturing jobs and approximately 9,000 construction jobs over the next 10 years. In addition, the Department will also make an additional $1.6 billion in loans available to GF, with the combined potential public and private investment totaling approximately $12.5 billion.