Biden administration invests $1.5 Billion in GlobalFoundries

In a move to bolster domestic semiconductor production, the Biden administration announced on Monday its plan to provide $1.5 billion to GlobalFoundries, a leading computer chip company with facilities in New York and Vermont. This funding is part of the 2022 CHIPS and Science Act, which aims to invest over $52 billion in revitalizing computer chip manufacturing in the United States and promoting research and development in the industry.

Commerce Secretary Gina Raimondo highlighted the importance of GlobalFoundries’ role in producing chips that power various critical technologies, including military equipment, electric vehicles, smartphones, and internet infrastructure. Apart from the direct financial support, the government also plans to offer loans totaling up to $1.6 billion, with a combination of public and private investments reaching approximately $12.5 billion.

GlobalFoundries is expected to utilize the funding to build a new advanced chip factory in Malta, New York, expand production at its existing facility in Malta in partnership with General Motors, and modernize its plant in Burlington, Vermont. These projects are projected to create 1,500 manufacturing jobs and 9,000 construction jobs over the next decade. Furthermore, a portion of the funding will be allocated towards training workers and providing child care support services.

Senate Majority Leader Chuck Schumer, a key proponent of the semiconductor funding legislation, emphasized the critical importance of investing in domestic chip production for economic and national security reasons. He highlighted the vulnerabilities exposed during the COVID-19 pandemic when chip shortages disrupted various industries, including automotive manufacturing.

As the U.S. economy faces challenges like inflation and supply chain disruptions, policymakers are focusing on long-term investments to drive economic growth. It is believed that initiatives like supporting chip manufacturing and infrastructure development are essential for securing America’s future competitiveness on the global stage.