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GlobalFoundries (NASDAQ:GFS) will receive a $1.5 billion grant from the U.S. government to promote domestic semiconductor manufacturing, as part of the U.S. CHIPS and Science Act.
Through the financing, GlobalFoundries will expand its existing factory in Malta, New York, adding existing technologies production at plants in Singapore and Germany is aimed at benefiting the U.S. auto industry.
The company will also build a new state-of-the-art factory on its Malta campus to meet anticipated customer demand for U.S.-made chips for applications including automotive, aerospace, defense and artificial intelligence.
Additionally, GlobalFoundries will modernize its facility in Essex Junction, Vermont.
Based on demand, the company plans to invest more than $12 billion over the next 10-plus years at its two U.S. sites through public-private partnerships and government financing.
In support of the Malta and New York projects, Governor Hochul announced $575 million in planned direct funding for New York State’s Green CHIPS and $15 million in funding for the state’s workforce development activities of New York for GlobalFoundries. Additionally, $30 million for New York State infrastructure upgrades and energy incentives provided by the New York Power Authority.
The company said the investments are expected to create more than 1,500 manufacturing jobs and approximately 9,000 construction jobs over the life of the projects.
“This will triple the manufacturing capacity of GlobalFoundries’ already massive campus in Saratoga County, spur billions in public-private investment, and help bring thousands of new, good-paying union manufacturing and construction jobs to the Capital Region “said Senator Chuck Schumer
Last week, it was reported that Intel (INTC) was in talks with the Biden administration to secure more than $10 billion in semiconductor manufacturing subsidies.