GlobalFoundries Receives $1.5 bn in US Funding to Boost Semiconductor Manufacturing

The U.S. Department of Commerce has unveiled a $1.5 billion funding initiative for GlobalFoundries (GF). This funding, allocated as part of the U.S. CHIPS and Science Act, will empower GF to enhance its manufacturing capacity and capabilities, particularly in producing semiconductor chips vital for automotive, IoT, aerospace, defense, and other crucial sectors.
GlobalFoundries Chip businessGlobalFoundries, headquartered in New York and marking its 15th year of operations, stands as the sole U.S.-based pure-play foundry with a global manufacturing footprint spanning facilities in the U.S., Europe, and Singapore.

Notably, GF becomes the inaugural semiconductor pure-play foundry to secure a substantial award exceeding $1.5 billion from the CHIPS and Science Act, aimed at reinforcing American semiconductor manufacturing prowess and supply chain resilience.

The proposed funding will underpin three key projects outlined by GF:

Expansion of GF’s Malta, NY, Fab: This initiative involves incorporating critical technologies already operational in GF’s Singapore and Germany facilities to cater to the burgeoning demands of the U.S. auto industry. The expansion aims to ensure supply chain resilience and meet the needs of automotive clients, including General Motors.

Construction of a New Fab in Malta: GF plans to erect a new fab on its Malta campus to address the surging demand for domestically produced essential chips across various sectors such as automotive, aerospace, defense, and AI. This expansion, combined with the existing site’s enlargement, is poised to triple the campus’s capacity over the next decade, with anticipated wafer production reaching 1 million per year upon project completion.

Modernization of GF’s Essex Junction Facility: This project involves upgrading and expanding GF’s facility in Essex Junction, Vermont, to establish the nation’s foremost and largest Trusted 200mm facility. The modernization efforts will equip the facility for high-volume manufacturing of next-generation gallium nitride (GaN) semiconductors, crucial for applications in electric vehicles, power grids, data centers, 5G, and 6G smartphones.

GF plans to channel over $12 billion into its U.S. operations over the next decade through public-private partnerships, with backing from federal and state governments and ecosystem partners, including strategic customers.

In conjunction with GF’s endeavors, Governor Hochul announced $575 million in direct funding for New York State Green CHIPS to support the Malta projects, along with $15 million for NYS Workforce Development activities for GlobalFoundries and $30 million for NYS Infrastructure upgrades and Energy incentives provided by the New York Power Authority (NYPA). These investments are projected to generate over 1,500 manufacturing jobs and approximately 9,000 construction jobs throughout the project duration.

Thomas Caulfield, President and CEO of GF, emphasized the importance of increasing demand for U.S.-made chips and nurturing the domestic semiconductor workforce in light of the forthcoming onshore capacity and technological advancements.