GlobalFoundries receive a $3.1 billion package from US government to bolster chip production
It appears like the US government is hugely interested in boosting the production of advanced semiconductors. For this reason, the government is helping eligible companies by offering them loans and grants. In this way, the production capacity of these manufacturing facilities will increase with time. Reportedly, GlobalFoundries, the New York-based chip manufacturer, is set to receive a $3.1 billion package from the US government. In this way, the local production of chips will expand in New York and Vermont.
The grants and loans align with the 2022 CHIPS and Science Act. As part of this policy, the US Commerce Department will give $52 billion to chip companies in the United States. the chip manufacturers can use this financial aid to expand the development of local chips in the US. Recently, GlobalFoundries received a $3.1 billion package. This package comprises of a $1.5 billion grant and up to $1.6 billion in loans.
the company can utilize this money to expand its manufacturing projects in New York and Vermont.
At its Fab 8 headquarters in Malta, New York, GlobalFoundries has already started a $12.5 billion expansion project that includes building a new computer chip facility. It is expected that 1,000 new jobs will be created at the new facility in New York and in Essex Junction, Vermont. Besides the new factory, the current New York factory will also undergo expansion with the $1 billion investment.
Due to its supply agreements with clients like General Motors and the US Department of Defense, the expansion has become necessary. The government is collaborating with other significant players in the global semiconductor sector to incentivize them to establish production facilities in the US as part of its effort to increase the country’s production of advanced chipsets. Samsung currently operates a semiconductor manufacturing facility in the United States, and its new $17 billion chip plant in Taylor, Texas, is anticipated to be operational soon.
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