The US government has become very serious about increasing production of advanced semiconductors at home. To that end, the company is strategically providing grants and loans to eligible companies, helping them expand their manufacturing facilities.
It was announced today that GlobalFoundries, a chipmaker based in New York, will receive a $3.1 billion package from the US government to expand local production of chipsets in New York and Vermont.
US is putting its money where its mouth is to expand local chipmaking
The assistance comes under the 2022 CHIPS and Science Act through which the US Commerce Department is giving $52 billion to chip companies in the United States for expanding manufacturing and developing local supply chains in the country.
The $3.1 billion package for GlobalFoundries includes a $1.5 billion grant and up to $1.6 billion in loans that the company can use for its manufacturing expansion projects in New York and Vermont. GlobalFoundries has already undertaken a $12.5 billion expansion project which involves the construction of a new computer chip factory at its Fab 8 headquarters in Malta, New York.
This expansion will enable the company to add 1,000 new jobs at the upcoming New York factory and its facility in Essex Junction, Vermont. Aside from building the new factory, the company is also embarking on a $1 billion capacity expansion project for its existing New York factory. The expansion has been necessitated following its supply agreements with customers including the US Department of Defense and General Motors.
In its bid to expand US manufacturing of advanced chipsets, the government is also working with other major players in the global semiconductor industry to encourage them for setting up production facilities here. Samsung already has a chipmaking plant in the US while its new $17 billion chip plant in Taylor, Texas, is expected to be operational in the near future.
