AES Semigas


20 February 2024

GlobalFoundries gains $1.5bn in CHIPS and Science Act funding

As part of the US CHIPS and Science Act, the US Department of Commerce has announced $1.5bn in planned direct funding for New York-headquartered GlobalFoundries (GF), which is celebrating 15 year of operations and is the only US-based pure-play foundry with a global manufacturing footprint including facilities in the USA, Europe and Singapore. The investment aims to enable GF to expand and create new manufacturing capacity and capabilities to securely produce more chips for automotive, IoT, aerospace, defense and other vital markets.

GF is the first semiconductor pure-play foundry to receive a major award (over $1.5bn) from the CHIPS and Science Act, which is designed to strengthen US semiconductor manufacturing, supply chains and national security. The proposed funding will support three GF projects:

  • Expansion of GF’s existing fabrication plant in Malta, NY, by adding critical technologies already in production in GF’s Singapore and Germany facilities geared towards enabling the US auto industry. As vehicles transition from mechanical to electronic systems, the number of semiconductor chips in each car or truck continues to soar. This expansion is said to be key to ensuring supply chain resilience for the growing demand and to delivering for GF’s automotive customers including General Motors. This will also continue to diversify GF’s flagship Malta fab into new technologies and end markets.
  • Construction of a new fab on the Malta campus to meet expected customer demand for US-made essential chips across a broad range of markets and applications including automotive, aerospace, defense and artificial intelligence (AI). The new fab, which has already been granted some necessary permitting, will leverage the site’s existing infrastructure and ecosystem, enabling a fast and efficient path from construction to production. The semiconductor market is expected to double over the next decade, and GF’s new fab aims to be positioned to capture the feature-rich mature, essential chip segment, which is expected to continue to represent more than 60% of the semiconductor market. Combined with the expansion of GF’s existing site, construction of the new fab is expected to triple the existing capacity of the Malta campus over the next 10+ years. These two projects are expected to increase wafer production to 1 million per year once all phases are complete.
  • Modernization of GF’s longest continuously operated fab and the nation’s first and largest Trusted 200mm facility in Essex Junction, Vermont. The project will upgrade existing facilities, expand capacity as well as create the first US facility capable of high-volume manufacturing of gallium nitride (GaN) semiconductors for use in electric vehicles, power grids, data centers, 5G and 6G smartphones and other critical technologies.

Based on market requirements and demand, GF plans to invest more than $12bn over the next 10-plus years across its two US sites through public–private partnerships with support from the federal and state governments as well as from its ecosystem partners, including key strategic customers.

In support of the two projects in Malta, New York, Governor Hochul has announced $575m in planned direct funding for New York State Green CHIPS. Also announced was $15m in planned funding for NYS Workforce Development activities for GlobalFoundries as well as $30m in planned funding for NYS Infrastructure upgrades and Energy incentives provided by the New York Power Authority (NYPA).

Combined, these investments are expected to create over 1500 manufacturing jobs and about 9000 construction jobs over the life of these projects.

“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 US semiconductor ecosystem more globally competitive and resilient and cements the New York Capital Region as a global semiconductor hub,” says GF’s president & CEO Dr Thomas Caulfield. “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 US semiconductor workforce,” he adds.

“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,” notes US 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 defense systems in New York, Vermont, and states across the country,” she adds.

“GlobalFoundries has reached a preliminary agreement for the largest award thus far from the CHIPS program I created for $1.5bn 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,” says Senator Chuck 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 defense. 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,” he adds.

To attract and cultivate a pipeline of semiconductor talent that will be needed in New York and Vermont, GF is creating and investing in numerous initiatives. The firm recently announced a new student loan repayment program to help current employees and new recruits pay down student loan debt. The new benefit program is part of the its multi-million-dollar investment to strengthen the semiconductor talent workforce by helping to ease the financial burden of higher education and training. GF is also partnering with a range of universities and community colleges nationwide to help to build a diverse workforce and semiconductor talent pipeline. As part of receiving CHIPS and Science Act funding, GF will continue to invest in and develop new workforce development efforts, including curriculum development, internship and apprenticeship programs, K-12 STEM outreach as well as additional education and training programs.

GF says that design and construction plans for its expansions and modernizations in New York and Vermont will reflect its ongoing commitment to sustainable operations and comply with the firm’s sustainability goals.

“This is a well-deserved recognition of GlobalFoundries’ commitment to bolstering the on-shore growth of US-made chips,” says Senator Peter Welch. “This investment, made possible by the CHIPS and Science Act and the White House and Secretary Raimondo’s commitment to competitiveness and security, will create jobs while making our supply chains more resilient. Even more impressive, this new site will see its commitment to sustainability through with a plan to use carbon-free neutral energy practices,” he adds.

“The first and largest 200mm semiconductor manufacturing facility of its kind in the US, GF’s Vermont fab is a cornerstone of the state’s economy and a key partner for the University of Vermont’s work as a national research university,” comments Kirk Dombrowski, VP for research and economic development at University of Vermont (UVM). “CHIPS funding will help ensure the commercial viability of this site for years to come and enable GF and UVM to build upon our recent [Economic Development Administration] EDA Tech Hub designation to create internships, apprenticeships, workforce development programs, and advanced research initiatives in the Green Mountain State.”

See related items:

University of Vermont–GlobalFoundries consortium designated a Tech Hub

GlobalFoundries gains $35m US Government funding to accelerate 200mm GaN-on-Si chip production

GlobalFoundries awarded $30m in US funding for development and production of GaN-on-Si

IQE forms strategic partnership with GlobalFoundries



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