US grants $1.5 bn to GlobalFoundries to boost domestic chip production, create jobs
US Vice President Kamala Harris announced on Monday the allocation of $1.5 billion to semiconductor company GlobalFoundries as part of a bid to boost chip manufacturing and strengthen US supply chains. This funding, granted via the $52 billion CHIPS and Science Act, aims to expand domestic production and create thousands of jobs in America. The preliminary agreement will allow GlobalFoundries to establish a new semiconductor production facility in Malta, New York, and expand existing operations in both New York and Vermont.
Harris emphasized the importance of semiconductors in modern technology, highlighting their role in electronic devices such as computers, televisions, cars, and washing machines. She noted that the chips produced by GlobalFoundries are crucial for the development and manufacturing of vehicles, smartphones, as well as for satellite and space communications essential to national defense and security. The investment is expected to generate over 10,000 jobs in the next decade, including union construction jobs with fair wages and benefits like child care services.
Furthermore, the Vice President pointed out that domestic production of these chips will enhance supply chain stability for the auto and aerospace industries, reducing reliance on overseas shipments. The expansion and strengthening of semiconductor production in the US is seen as a strategic move to support domestic manufacturing and national security.
The announcement aligns with the Biden administration’s efforts to bolster domestic production and address the global semiconductor shortage. The allocation of funding to GlobalFoundries reflects the administration’s commitment to reviving and expanding chip manufacturing capabilities within the country.
In conclusion, the $1.5 billion grant to GlobalFoundries represents a significant step towards advancing domestic semiconductor production, strengthening US supply chains, and creating high-paying jobs. The expansion of operations in New York and Vermont, along with the establishment of a new state-of-the-art production facility, is expected to have wide-ranging implications for the technology, automotive, and defense industries in the US.
The efforts to enhance chip manufacturing capabilities and supply chain resilience are crucial for the US economy’s competitiveness and national security in the rapidly evolving technological landscape.
