GlobalFoundries has successfully obtained $1.5 billion in funding through the CHIPS Act for its expansion initiatives in the United States. They are planning to allocate this financial support towards enhancing production capabilities catering to the automotive, aerospace, and AI sectors.
This picture shows a view on the Singapore facility of chipmaker GlobalFoundries during the Singapore Fab expansion grand opening in Singapore on September 12, 2023. The world's third-largest contract chipmaker GlobalFoundries opened a $4 billion manufacturing plant in Singapore on Tuesday as part of a global expansion to help ease an industry supply crunch.
Obtaining CHIPS Act Funding
The Biden administration's decision to grant this funding underscores the significance of bolstering semiconductor manufacturing within the country under the CHIPS Act.
GlobalFoundries, which emerged as a separate entity from AMD in 2009, will also leverage an additional $1.6 billion in loans from the CHIPS Program Office to fund three distinct projects aimed at advancing semiconductor production.
As stated in its press release, GlobalFoundries is set to embark on the construction of a new fabrication facility in Malta, New York, aiming to introduce "high-value technologies currently unavailable in the US."
This facility will serve as a hub for chip production catering to various sectors including automotive, aerospace, defense, and AI applications. Construction of the new facility is slated to commence in 2025.
Secondly, GlobalFoundries has outlined plans to enhance its existing facility in Malta by integrating technologies from its plants in Singapore and Germany. The goal is to ramp up semiconductor production for automotive applications.
This expansion initiative is projected to triple the capacity of GlobalFoundries' Malta campus within the next decade. Upon completion of all phases of these projects, GlobalFoundries anticipates boosting wafer production to 1 million annually across its facilities.
Lastly, the remaining portion of the funding will be allocated toward the modernization of an existing fab located in Burlington, Vermont.
US Expansion
The primary objective is to establish the first US-based plant capable of high-volume manufacturing of next-generation gallium nitride on silicon semiconductors, vital for electric vehicles, smartphones, the power grid, and other key technologies.
Notably, the plant will operate using entirely carbon-free energy sources, with an on-site solar system expected to meet up to nine percent of its annual power requirements.
Through collaborative efforts with public-private partnerships, GlobalFoundries has outlined ambitious plans to inject more than $12 billion into its sites over the coming decade and beyond.
Facilitating this initiative, New York is extending its support to the Malta projects through $575 million in performance-based Green CHIPS tax credits, complemented by a minimum investment of $30 million from the New York Power Authority.
According to Reuters, these endeavors are anticipated to generate approximately 1,500 manufacturing roles and around 9,000 jobs in construction over the next decade. These positions are slated to offer equitable wages and inclusive benefits, including childcare support.
In alignment with the overarching goals of the CHIPS Act, this substantial investment aims to fortify domestic semiconductor supply chains.
GlobalFoundries underscores the significance of this investment, noting that only four companies worldwide possess the capacity to deliver "current and mature foundry capabilities" at its scale outside of China, with GlobalFoundries being the sole US-based entity among them.
