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US awards $1.5bn to GlobalFoundries for domestic semiconductor production

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Vice President Kamala Harris has announced that the US government will provide $1.5 billion to support the expansion of semiconductor production. For the official statement from the briefing room, you can click here.

GlobalFoundries (GFS.O), a US-based company and the world’s third-largest contract chipmaker, will be the recipient of the $1.5 billion funding to enhance semiconductor production. The Biden administration revealed this decision on Monday, emphasizing the importance of addressing global supply chain challenges and securing domestic supply chains.

The plan involves constructing a new semiconductor production facility in Malta, New York, in addition to expanding current operations in Malta and Burlington, Vermont, under an initial agreement with the Commerce Department.

This initiative aligns with ongoing efforts by the US government to bolster domestic semiconductor production and decrease dependence on Chinese imports.

Vice President Harris stated, “This investment will not only generate more than 10,000 quality jobs over the next ten years, including numerous union construction positions with competitive wages and benefits like childcare services, but it will also enhance supply chain stability for the American automotive and aerospace industries that currently rely on imported chips.”

Understanding the Role of Semiconductors

Semiconductors, these small chips play crucial roles in satellite and space communications, the defense sector, as well as in everyday applications like blind spot monitoring and collision detection in vehicles, cellular and wifi connectivity in smartphones, and various other connected devices. They are integral to numerous common technologies we use daily.

The new GFS.O facility in Malta will produce a unique chip type not currently manufactured elsewhere in the United States. Meanwhile, the production in Burlington will center on the high-volume manufacturing of next-generation gallium nitride on silicon semiconductors designed for electric vehicles, the power grid, and smartphones. These details were disclosed by Commerce Secretary Gina Raimondo during a Reuters-reported press briefing.

Featured image: Pexels

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