GlobalFoundries (Nasdaq: GFS) will receive a potential $1.5 billion investment from the Department of Commerce through the CHIPS and Science Act to build and expand new manufacturing capabilities to produce more semiconductor chips for automotive, defense, aerospace, artificial intelligence, internet of things and other applications.
The company said Monday it will use the investment to expand its existing fabrication plant in Malta, New York, construct a new fab on the Malta campus and modernize its existing facility in Essex Junction, Vermont.
The government of New York will also support GFâs two Malta projects. New York Governor announced planned direct funding worth $575 million for New York State Green CHIPS and $15 million for NYS Workforce Development activities. GF will also get $30 million in planned funding from the New York Power Authority for NYS Infrastructure upgrades.
Meanwhile, GF intends to invest more than $12 billion over the next decade across its two sites through public-private partnerships and with assistance from federal and state government agencies.
The planned investments from the Commerce Department and New York State are expected to generate more than 1,500 manufacturing jobs and approximately 9,000 jobs over the term of the company’s projects.
âThese 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 U.S. semiconductor ecosystem more globally competitive and resilient and cements the New York Capital Region as a global semiconductor hub,â said Thomas Caulfield, president and CEO of GF.
âWith new onshore capacity and technology on the horizon, as an industry we now need to turn our attention to increasing the demand for U.S.-made chips, and to growing our talented U.S. semiconductor workforce,â Caulfield added.
To further develop its semiconductor talent pipeline, GF is investing in internship and apprenticeship programs, curriculum development and other workforce development efforts and launching initiatives, including a new student loan repayment program.
