By The Financial District
Feb 211 min
The Biden administration has announced its intention to provide $1.5 billion to the computer chip company GlobalFoundries to expand its domestic production in New York and Vermont, as reported by Josh Boak for the Associated Press (AP).
The projects are expected to create 1,500 manufacturing jobs and 9,000 construction jobs over the next decade. I Photo: GlobalFoundries
This announcement marks the third award of direct financial support for a semiconductor company under the 2022 CHIPS and Science Act.
The law enables the government to invest more than $52 billion to revitalize the manufacturing of computer chips in the United States and advance research and development.
“The chips that GlobalFoundries will produce in these new facilities are essential,” said Commerce Secretary Gina Raimondo on a call with reporters.
“They power sophisticated military equipment, electric vehicles. They ensure smartphones have the latest features and enable faster Internet connections for Americans.”
In addition to the direct funding, the government will also provide loans worth up to $1.6 billion, with a total combination of public and private investment expected to equal roughly $12.5 billion.
GlobalFoundries intends to use the funding to help pay for the construction of a new advanced chip factory in Malta, New York, increase production at its existing plant in Malta as part of a strategic agreement with General Motors, and revitalize its plant in Burlington, Vermont.
The projects are expected to create 1,500 manufacturing jobs and 9,000 construction jobs over the next decade.