Malta-based GlobalFoundries has reached a $1.5 billion award agreement with the federal government to expand production of computer chips. The company says the funding will allow it to expand the Fab 8 plant, build a second fab at the Saratoga County campus, and modernize its facility in Essex Junction, Vermont.
“GF is proud to announce this proposed funding from the Department of Commerce and New York State and appreciates the collaboration of the CHIPS Office and the Empire State Development Corporation throughout this process. These proposed investments, along with the investment tax credit (ITC) for semiconductor manufacturing, are central to the next chapter of the GlobalFoundries story and our industry. They will also play an important role in making the U.S. semiconductor ecosystem more globally competitive and resilient and cements the New York Capital Region as a global semiconductor hub,” said Dr. Thomas Caulfield, president and CEO of GF, in a statement. “With new onshore capacity and technology on the horizon, as an industry we now need to turn our attention to increasing the demand for U.S.-made chips, and to growing our talented U.S. semiconductor workforce.”
The agreement with the U.S. Department of Commerce is under the CHIPS and Science Act, which was spearheaded by Senate Majority Leader Chuck Schumer of New York.
"This will triple production capacity of GlobalFoundries’ already massive campus in Saratoga County, spur billions in public-private investment, and help bring thousands of new good-paying manufacturing and union construction jobs to the Capital Region,” Schumer said in a statement.
The Albany Business Review reports the Commerce Department will also provide GlobalFoundries an additional $1.6 billion in loans.
The company on Monday also announced more than $600 million in funding and incentives from New York state. GlobalFoundries says it plans to invest more than $12 billion over the next 10 plus years across its two U.S. sites. Together, GlobalFoundries says the investments are expected to create over 1,500 manufacturing jobs and 9,000 construction jobs.
“New York State is becoming the best place on earth to build a business,” said New York Governor Kathy Hochul in a statement. “Thanks to our pro-business policies, commitment to innovation and best-in-the-nation workforce, green jobs and high-tech manufacturers are flocking to the Empire State. This $11 billion investment from GlobalFoundries is a game changer, and with the partnership of the Biden administration, New York’s congressional delegation, and all of our local stakeholders, the best is yet to come.”
“This is huge news for Vermont and the region,” said Vermont Governor Phil Scott in a statement. “The CHIPS Act funding will help encourage innovation and expansion of this vital sector in our state and across the country. I’m proud of the work my team has done with GF and others to assist and I want to thank the Biden Administration and our congressional delegation for their continued partnership.”
