News: Microelectronics
21 November 2024
GlobalFoundries’ $1.5bn US CHIPS Act funding confirmed by Department of Commerce
Following the completion of due diligence, the US Department of Commerce has confirmed the award (proposed in February) of up to $1.5bn in direct funding through the US CHIPS and Science Act to New York-headquartered GlobalFoundries (GF, the only US-based pure-play foundry with a global manufacturing footprint including facilities in the USA, Europe and Singapore). The award follows the preliminary memorandum of terms signed in February and will enable GF to expand its chip manufacturing and technology development in the USA, strengthening supply chains and supporting customers across a range of end markets including automotive, smart mobile devices, IoT, data centers, and aerospace and defense.
“GF’s essential chips are at the core of US economic, supply chain and national security,” says GF’s president & CEO Dr Thomas Caulfield. “We greatly appreciate the support and funding from both the US Government and the states of New York and Vermont, which we will use to ensure our customers have the American-made chips they need.”
GF’s CHIPS and Science Act award will support three projects:
- Expansion of GF’s existing fabrication plant in Malta, NY, by adding critical technologies already in production at GF’s Singapore and Germany facilities, to enable a secure and reliable supply of domestically manufactured essential chips for the US auto industry.
- Modernization and upgrading of GF’s existing fab in Essex Junction, Vermont, to expand production capacity and create a facility capable of high-volume manufacturing of gallium nitride (GaN) semiconductors for use in electric vehicles, data centers, IoT, smartphones and other critical applications.
- In alignment with market conditions and customer demand, construction of a new fab on GF’s campus in Malta, NY, to meet expected demand for US-made essential chips across a broad range of markets and applications including automotive, AI in the data center and at the edge, as well as aerospace and defense.
The two New York-based projects are expected to triple the existing capacity of GF’s Malta campus over the next 10-plus years, in alignment with expected market requirements and customer demand. Construction of the new fab will leverage the GF site’s existing infrastructure and ecosystem, enabling a fast and efficient path from construction to production.
In total, the projects represent more than $13bn of investment over the next 10-plus years across GF’s two US sites. This investment includes the $1.5bn CHIPS and Science Act award, more than $550m in support from the New York State Green CHIPS Program, as well as funding and support from Vermont, GF ecosystem partners and key strategic customers, and other incentives.
Combined, these investments are expected to create nearly 1000 direct manufacturing jobs and more than 9000 construction jobs over the life of these projects.
GF’s fabs in New York and Vermont are both Trusted Foundry accredited and manufacture secure chips in partnership with the US government.
As part of its CHIPS and Science Act award, to attract and cultivate a pipeline of semiconductor talent in New York and Vermont, 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, consistent with its longstanding commitment to its communities and the environment, its design and construction plans for the expansions and modernizations in New York and Vermont will reflect the company’s sustainability goals for future operations.
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