The Biden administration gave $1.5 billion to the nation’s largest semiconductor maker. This is the first major subsidy from the $52 billion TIP law passed nearly two years ago.
GlobalFoundries, the world’s third-largest contract chipmaker, will build a new semiconductor manufacturing facility in Malta, New York, and expand existing operations at the facility and another in Burlington, Vermont, under a preliminary agreement with the Department of Commerce. We plan to expand the
The grant comes with $1.6 billion in available financing, and the funding is expected to generate a total of $12.5 billion in potential investments across the two states.
“The chips that GlobalFoundries will manufacture in these new facilities are critical to our national security,” Commerce Secretary Gina Raimondo told reporters at a briefing.
GlobalFoundries will use the funds to pay for construction of a new advanced chip factory in Malta, located about 30 miles north of Albany. The company also plans to expand production at its existing plant in Malta and revitalize its Burlington, Vermont, plant as part of a strategic agreement with General Motors.
These projects are expected to create 1,500 manufacturing and 9,000 construction jobs over the next 10 years.
As part of the terms of the deal, $10 million will be earmarked for worker training. GlobalFoundries also plans to expand its existing $1,000 annual subsidy for child care and child support services for construction workers.
Officials said the chip, which is about the size of a fingernail, could be used in everyday applications such as blind spot detection and collision warning in cars and electric vehicles, WiFi and cellular connectivity, as well as in satellite and space communications and the defense industry. It is said to be used. .
In August 2022, Biden signed the bipartisan CHIPS Act, which strengthens domestic production of semiconductors to prevent a Chinese attack on Taiwan, a major supplier of advanced computer chips to the world.
This includes $39 billion in direct grants and an additional $13 billion for research and development and workforce training. There is also $75 billion in loans and loan guarantees.
So far, the government has given BAE Systems only $35 million in grants to increase production at its New Hampshire factory, which makes chips for military aircraft including the F-15 and F-35 jets. do not have.
South Korean electronics giant Samsung announced in December that it would postpone production at a new chip manufacturing plant in Texas until 2025.
The announcement comes just months after archrival Taiwan Semiconductor Manufacturing Co. said it would postpone production at a new facility in Arizona, which was scheduled to begin this year, until 2025.
TSMC, whose customers include technology giants Apple and Nvidia, said the delays were due to difficulty finding skilled workers and higher-than-expected costs.
The company, which is investing $40 billion in a new factory in Arizona, is reportedly seeking $15 billion in CHIPS Act funding.
But TSMC has balked at some of the conditions Washington has attached to the proposed funding, including a requirement to share profits from the plant and detailed information about its operations.
with post wire
