The Biden administration has announced a $1.5 billion grant to support the construction of a large-scale computer-chip fabrication facility by GlobalFoundries in New York, as part of the Chips and Science Act, a $52 billion program aimed at bolstering U.S. semiconductor manufacturing. The investment seeks to address the decline in domestic chip production, decrease reliance on foreign manufacturers, and secure a supply of critical chips for American industry and defense.
GlobalFoundries will utilize the grant to build a new fabrication facility in Malta, N.Y., produce advanced chips not currently made in the U.S., expand an existing plant, and upgrade another facility. This effort aims to increase the nation's capability to mass-produce semiconductors, essential components in modern consumer and military electronics.
The funding will also facilitate the growth of the semiconductor workforce and increase demand for U.S.-made chips. Additionally, the Biden administration plans to provide $1.6 billion in loans to support GlobalFoundries' construction and upgrade projects, totaling about $12.5 billion, including private funding.
The expansion is expected to triple GlobalFoundries' capacity over the next decade, create approximately 1,500 jobs in manufacturing and 9,000 in construction, and position the Burlington facility as the first in the nation to produce a next-generation chip for electric vehicles and the power grid. Moreover, the administration will allocate about $10 million to support workforce development measures, including an apprenticeship program to train individuals for fab work.
This initiative represents a significant effort to revitalize U.S. semiconductor manufacturing, reduce supply chain risks, and enhance global competitiveness in this critical industry.
