(MENAFN) GlobalFoundries, an American semiconductor manufacturing and design firm, is set to receive substantial subsidies totaling USD3.1 billion from the US government. The US Commerce Department announced on Monday that the chipmaker will benefit from USD1.5 billion in federal grants allocated to finance various projects across New York and Vermont. These initiatives are anticipated to generate 10,500 jobs in construction and manufacturing sectors.
The funding represents a direct allocation under the US' CHIPS and Science Act, aimed at bolstering domestic semiconductor supply chains, enhancing the nation's competitiveness in chip manufacturing, and fortifying economic and national security capabilities. Additionally, alongside the direct grant, the CHIPS Program Office will facilitate approximately USD1.6 billion in loans to support GlobalFoundries' endeavors.
This significant investment underscores the US government's commitment to revitalizing the semiconductor industry domestically and ensuring its strategic importance in various sectors, including technology, defense, and critical infrastructure. By fostering innovation and expanding manufacturing capacity, initiatives such as these seek to address supply chain vulnerabilities and reinforce America's leadership in semiconductor technology on the global stage.
"Semiconductors are in everything from our cellphones, to refrigerators, to cars, and our most advanced weapons systems, and access to them carries important economic and national security implications. It was the shortages of semiconductors during the COVID-19 pandemic that raised prices for consumers and led to the shutdown of automobile manufacturing sites across the country," stated Commerce Secretary Gina Raimondo.
Vice President Kamala Harris declared that semiconductors are "the brain of modern technology," continuing: "While they are no larger than a fingernail and no thicker than a piece of paper, they are essential to every electronic device that we currently use – from computers and televisions to cars and washing machines."
President Joe Biden signed the CHIPS and Science Act into law in August 2022, allocating USD52.7 billion to ramp up the production of domestically manufactured semiconductors. The legislation aims to mitigate supply chain vulnerabilities by promoting increased manufacturing within the United States while also strengthening domestic scientific research efforts. The investment reflects a strategic initiative to enhance America's self-sufficiency in semiconductor production, a critical component of various industries including technology, defense, and infrastructure.
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