NewsNational NewsScripps News


GlobalFoundries gets $1.5 billion in federal chip-manufacturing funds

The money will allow the company to modernize two existing computer chip plants in the U.S. and construct a third.
GlobalFoundries gets $1.5 billion in federal chip-manufacturing funds
Posted at 6:29 PM, Feb 19, 2024

The Biden administration plans to devote $1.5 billion to chipmaker GlobalFoundries so it can expand production in New York and Vermont.

The government will also make another $1.6 billion in loans available.

The payment comes under the CHIPS And Science Act, which will ultimately distribute more than $50 billion in domestic computer chip manufacturing and R&D investment.

GlobalFoundries says it intends to use the money to modernize two existing plants in Burlington, Vermont and Malta, New York. It will also construct a new plant in Malta.

Construction is expected to drive 9,000 new jobs over the next ten years, while manufacturing will add 1,500 jobs in the new plants. As a condition of funding through the CHIPS Act, GlobalFoundries will spend $10 million on new skills training and will continue a $1,000-per-year child care subsidy for construction workers on the project.

SEE MORE: Program helps students become semiconductor technicians in 10 days

The CHIPS Act, signed in 2022 after passing with modest bipartisan support, brings $280 billion to bear on modernizing U.S. manufacturing and making its high-tech output more competitive with China.

A total of $52 billion will go specifically to the semiconductor industry. 

Administration officials say the output of the new factories will show up in everything from military applications to new electric vehicles.

Trending stories at