The US allocated $1.5 billion to GlobalFoundries to expand chip production

The US Department of Commerce reported the completion of work on the allocation of government subsidies to GlobalFoundries in the amount of $1.5 billion. These funds will be used to expand the chipmaker’s capacity at factories in the states of New York and Vermont.

Image source: GlobalFoundries

A preliminary decision to award the contract to GlobalFoundries, the world’s third largest contract semiconductor manufacturer, was reached in February this year. This comes after the company announced plans to invest $13 billion over the next 10 years in its US manufacturing sites, which produce chips for the automotive, Internet of Things, mobile devices, data centers, and aerospace and defense industries.

Commerce Secretary Gina Raimondo told reporters last week that the department is seeking to award as many contracts as possible under the $52.7 billion CHIPS Act of 2022 before The current US presidential administration will end its work on January 20. “We are working as hard as we can,” the source quoted Raimondo as saying.

The allocated funds will allow GlobalFoundries to expand production at the plant in Malta, pc. New York, thanks to the integration of technologies already used at the company’s facilities in Singapore and Germany. We are talking about the production of chips for the American automobile industry. In addition, New York State has also pledged $550 million in support for the chipmaker. GlobalFoundries plans to build a new plant in Malta to produce automotive chips, as well as semiconductor products for the artificial intelligence, aerospace and automotive industries.

Last week, the Chamber of Commerce finalized $6.6 billion in subsidies for Taiwan Semiconductor Manufacturing Co.’s U.S. unit. Also previously approved was $6.4 billion for Samsung to expand its Texas facility, $8.5 billion for Intel and $6.1 billion for Micron Technology. It is also noted that at the beginning of the month, the Chamber of Commerce fined GlobalFoundries $500 thousand for the unauthorized supply of chips to a branch of the Chinese company SMIC, which was blacklisted by the Ministry of Commerce.