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GlobalFoundries gets $1.5 billion in federal chip-manufacturing funds

The money will allow the company to modernize two existing computer chip plants in the U.S. and construct a third.
GlobalFoundries gets $1.5 billion in federal chip-manufacturing funds
Posted at 8:29 PM, Feb 19, 2024
and last updated 2024-02-20 07:41:01-05

The Biden administration plans to devote $1.5 billion to chipmaker GlobalFoundries so it can expand production in New York and Vermont.

The government will also make another $1.6 billion in loans available.

The payment comes under the CHIPS And Science Act, which will ultimately distribute more than $50 billion in domestic computer chip manufacturing and R&D investment.

GlobalFoundries says it intends to use the money to modernize two existing plants in Burlington, Vermont and Malta, New York. It will also construct a new plant in Malta.

Construction is expected to drive 9,000 new jobs over the next ten years, while manufacturing will add 1,500 jobs in the new plants. As a condition of funding through the CHIPS Act, GlobalFoundries will spend $10 million on new skills training and will continue a $1,000-per-year child care subsidy for construction workers on the project.

SEE MORE: Program helps students become semiconductor technicians in 10 days

The CHIPS Act, signed in 2022 after passing with modest bipartisan support, brings $280 billion to bear on modernizing U.S. manufacturing and making its high-tech output more competitive with China.

A total of $52 billion will go specifically to the semiconductor industry. 

Administration officials say the output of the new factories will show up in everything from military applications to new electric vehicles.