The United States Department of Commerce has announced that GlobalFoundries or GF – a microchip supplier for GM – will receive $1.5 billion in planned direct funding.
Enacted as part of the U.S. CHIPS and Science Act, this investment will allow GF to create and expand manufacturing capacity and capabilities in order to produce U.S.-based microchips for the automotive sector, defense, and many other vital markets. This proposed funding will facilitate three projects, including:
- Expanding existing GlobalFoundries fabs by adding critical technologies geared towards enabling the U.S. automotive industry to keep supply chains secure.
- Constructing a new fab capable of meeting the expected customer demand for U.S.-made essential chips.
- Modernizing GlobalFoundries’ longest continuously operated fab in Vermont with upgraded facilities and expanded capacities.
“These 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,” GF President and CEO Dr. Thomas Caulfield claimed in a prepared statement. “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. With 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.”
It’s worth noting that GF plans to invest more than $12 billion over the next 10 years. In addition, these investments are expected to create a combined 1,500 manufacturing jobs and roughly 9,000 construction jobs.
“Semiconductors are critical to today’s vehicles,” GM President Mark Reuss was quoted as stating. “GlobalFoundries’ investment in New York both ensures a robust supply of semiconductors in the U.S. to help GM meet demand and supports U.S. leadership in automotive innovation.”
Interestingly, GlobalFoundries is the only U.S.-based pure play foundry with global manufacturing facilities in the United States, Europe, and Singapore.
Subscribe to GM Authority for more GM technology news, GM business news, and around-the-clock GM news coverage.
Comments
This is great news. The TSMC semi-conductor manufacturing facility in Arizona is starting construction soon as well. Anything to strengthen technological independence is a win.
TSMC construction in AZ started 3 years ago. There problem now is lack of talent to start manufacturing chips. Start of operations has been delayed one year.