The Biden administration has awarded a $1.5 billion grant to the New York-based chipmaker, GlobalFoundries. This is part of the government’s initiative to boost semiconductor manufacturing in the United States. In addition to the grant, the administration will make another $1.6 billion in federal loans available to GlobalFoundries. The funding will triple the company’s production capacity in New York over the next 10 years.
Currently, only 12% of chips are manufactured in the United States, with most of them being produced in Asia. The shortage of critical chips during the pandemic highlighted America’s dependence on foreign sources. The award to GlobalFoundries aims to expand the company’s facility in New York and support dedicated chip production for General Motors.
A portion of the grant will go towards building a new facility in the United States to manufacture critical chips that are not currently being produced in the country. This includes semiconductors suitable for use in satellites due to their ability to withstand high doses of radiation. The funds will also be used to upgrade the company’s operations in Vermont, which is essential for producing chips used in electric vehicles, the power grid, and smartphones.
The Biden administration’s goal is to reinvigorate American semiconductor manufacturing. Congress passed a bill allocating over $50 billion to the semiconductor industry to address the global chip shortage experienced during the pandemic. This initiative aims to prevent similar supply chain disruptions in the future.
Overall, the grant awarded to GlobalFoundries is expected to create jobs and bolster the semiconductor industry in the United States. GlobalFoundries is one of the few companies that still engage in chip manufacturing and has an important role in the industry’s ecosystem.
