News & Analysis

GlobalFoundries to receive $1.5 billion from the US CHIPS and Science Act

19th February 2024
Paige West

The US Department of Commerce has unveiled a $1.5 billion funding initiative for GlobalFoundries (GF) under the US CHIPS and Science Act.

This strategic investment aims to bolster GF's manufacturing prowess, allowing for an increase in production capabilities to securely meet the burgeoning demand for critical semiconductors across essential sectors like automotive, IoT, aerospace, and defence.

Marking its 15th anniversary, New York-based GF stands out as the only US-centric foundry with a widespread manufacturing presence across the US, Europe, and Singapore. This funding marks GF as the inaugural semiconductor foundry to clinch a substantial award from the CHIPS and Science Act, an initiative crafted to reinforce US semiconductor manufacturing, ensuring supply chain robustness, and enhancing national security. The investment is earmarked for three pivotal GF projects:

  1. The expansion of GF's Malta, NY, fabrication plant integrates cutting-edge technologies from its facilities in Singapore and Germany, particularly to support the US automotive industry's shift towards electronic systems. This expansion aims to fortify supply chain resilience amidst the escalating semiconductor demand, ensuring robust delivery capabilities for automotive clients like General Motors and diversifying the Malta fab's technology and market scope
  2. The development of a new state-of-the-art fabrication plant within the Malta campus is set to address the anticipated demand for domestically produced chips. This facility will cater to a wide spectrum of sectors, leveraging existing infrastructure for a seamless transition from construction to operational status. With the semiconductor market projected to double in the coming decade, GF's new fabrication plant is poised to capitalize on the mature, essential chip segment, significantly increasing Malta campus's capacity.
  3. Modernisation efforts at GF's Essex Junction, Vermont facility, renowned as the country's first and most extensive Trusted 200mm plant, which will see upgrades to accommodate high-volume manufacturing of next-gen gallium nitride (GaN) semiconductors. These advancements will serve critical applications across various sectors, including electric vehicles and telecommunications

GF plans a total investment exceeding $12 billion over the next decade at its US sites, supported by a mix of public-private partnerships and contributions from federal and state governments, alongside strategic customer, and partner ecosystems.

In conjunction with these projects, Governor Hochul announced New York State's commitment of $575 million to the Green CHIPS initiative, alongside additional funding for workforce development and infrastructure enhancements to support GlobalFoundries' expansion efforts. These investments are expected to generate over 1,500 manufacturing and approximately 9,000 construction jobs throughout the project lifespans.

“GF is proud to announce this proposed funding from the Department of Commerce and New York State and appreciates the collaboration of the CHIPS Office and the Empire State Development Corporation throughout this process. These proposed investments, along with the investment tax credit (ITC) for semiconductor manufacturing, are central to the next chapter of the GlobalFoundries story and our industry. They will also play an important role in making the U.S. semiconductor ecosystem more globally competitive and resilient and cements the New York Capital Region as a global semiconductor hub,” said Dr. Thomas Caulfield, President, and CEO of GF. “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 U.S. semiconductor workforce.”

“Semiconductors are in everything from our mobile phones, to refrigerators, to cars, and our most advanced weapons systems, and access to them carries important economic and national security implications. It was the shortages of semiconductors during the COVID-19 pandemic that raised prices for consumers and led to the shutdown of automobile manufacturing sites across the country,” said Secretary of Commerce Gina Raimondo. “Thanks to the CHIPS and Science Act, we’re working to onshore these critical technologies in order to bolster the supply of domestic chips that are essential to manufacturing cars, electronics, and national defence systems in New York, Vermont, and states across the country.”

“I have long said my CHIPS & Science Law would deliver big for New York, and I meant big with a capital ‘B.’ I am proud to announce GlobalFoundries has reached a preliminary agreement for the largest award thus far from the CHIPS program I created for $1.5 billion in grant funding. 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 Schumer. “When I wrote the CHIPS & Science Law, I made sure there was funding especially for the feature-rich, legacy chips that GlobalFoundries produces in Malta and that are essential for America’s auto industry and national defence. We all remember the days of the pandemic when chip shortages sky rocketed car prices and created supply chain issues leading to months-long wait times for cars and electronics, and investments like this are how we can help prevent that from happening again.  Ever since GlobalFoundries’ first Fab 8 broke ground 15 years ago, I knew how significant the company would be for the Capital Region and Upstate NY. Today, the plans for their second chip facility and thousands of new good-paying jobs move forward thanks to the CHIPS & Science Law I fought hard to create.”

“New York State is becoming the best place on earth to build a business,” said Governor Hochul. “Thanks to our pro-business policies, commitment to innovation and best-in-the-nation workforce, green jobs and high-tech manufacturers are flocking to the Empire State. This $11 billion investment from GlobalFoundries is a game changer, and with the partnership of the Biden administration, New York’s congressional delegation, and all of our local stakeholders, the best is yet to come.”

To nurture a skilled semiconductor workforce in New York and Vermont, GF is launching several initiatives, including a new student loan repayment program to alleviate the financial burden of education for current and prospective employees. Additionally, GF is collaborating with educational institutions nationwide to cultivate a diverse and talented workforce, further supported by the company's commitment to developing workforce training programs as part of the CHIPS and Science Act funding requirements.

GF's design and construction plans for its New York and Vermont expansions are aligned with its commitment to sustainability, adhering to the company's environmental goals.

Customers, government officials, and academia celebrate the news from the US Department of Commerce and GF: 

“We are pleased that GlobalFoundries will be receiving a $1.5 billion investment from the US CHIPS and Science Act,” said Dr. Lisa Su, Chair and CEO of AMD. “GlobalFoundries is a strategic supplier and key enabler of AMD’s high-performance computing products. The planned investment demonstrates the commitment of the US government to strengthen the domestic chip supply chain for economic growth and ensure the long-term competitiveness of the US semiconductor ecosystem.”  

“Lockheed Martin is proud of our strategic partnership with GlobalFoundries to help increase access to domestically produced microelectronics – a true national security imperative,” said Jim Taiclet, Chairman, President, and CEO of Lockheed Martin. “The Department of Commerce’s announcement led by Secretary Raimondo will enable GlobalFoundries to continue providing essential technology to further strengthen Lockheed Martin’s secure and robust global supply chain. We look forward to the results of this announcement as part of our commitment to delivering cutting-edge 21st Century Security capabilities that advance deterrence and keep our customers ahead of emerging threats.”

“Qualcomm welcomes today’s announcement from the US Department of Commerce CHIPS office regarding funding for GlobalFoundries expansion of their U.S. chip making operations. GlobalFoundries’ commitment to providing additional chip production capacity that allows us to continue pushing the boundaries of the innovation for 5G, Automotive and IoT applications. We are pleased to partner with a company that shares our vision for a more resilient global supply chain for chip production,” said Dr. Roawen Chen, Chief Supply Chain and Operations Officer, Qualcomm Technologies, Inc.

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