\GlobalFoundries confirmed that it will receive an award of up to $1.5 billion in direct funding from the CHIPS and Science Act. A preliminary agreement with the U.S. Department of Commerce was first announced nine months ago.
This funding supports the expansion of GF’s semiconductor manufacturing in the United States, including major projects in Malta, New York, and Essex Junction, Vermont. The initiative aims to bolster U.S. chip supply chains for critical sectors like automotive, IoT, aerospace, and defense.
The funding will drive three key projects. In Malta, New York, GF will expand its existing fab with technology already in production at facilities in Singapore and Germany. In Vermont, GF plans to modernize its Essex Junction fab, focusing on next-generation gallium nitride (GaN) semiconductors for electric vehicles, data centers, and other applications. Additionally, GF will construct a new fab in Malta to address growing demand for U.S.-made chips in markets including automotive, AI, and aerospace. These investments are expected to triple the Malta campus’s capacity over the next decade.
In total, GF will invest over $13 billion in its New York and Vermont sites, supported by the CHIPS Act funding, $550 million from New York State’s Green CHIPS Program, and additional contributions from ecosystem partners and customers. These efforts will create approximately 1,000 new manufacturing jobs and 9,000 construction jobs, alongside workforce development initiatives and sustainability-focused expansions.
• Key Points
• CHIPS Act Funding: Up to $1.5 billion to GF.
• Vermont Fab Modernization: Focus on GaN semiconductors for EVs, IoT, and data centers.
• New York Expansion: Existing fab upgrade and a new fab to triple Malta campus capacity.
• Total Investment: Over $13 billion, including federal, state, and private contributions.
• Jobs: Close to 1,000 direct manufacturing roles and 9,000 construction jobs.
“GF’s essential chips are at the core of U.S. economic, supply chain, and national security. We greatly appreciate the support from the U.S. Government and the states of New York and Vermont, which we will use to ensure our customers have the American-made chips they need to succeed,” said Dr. Thomas Caulfield, CEO of GF.
