The U.S. Department of Commerce finalized a CHIPS Incentives Award of up to $1.5 billion to GlobalFoundries (GF) on November 20, 2024, under the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication Facilities. The award supports GF manufacturing sites in New York and Vermont, where the company produces semiconductors for automotive, aerospace and defense, smart mobile, and communications applications. A preliminary memorandum of terms had been signed and announced on February 19, 2024; the direct award follows completion of the department’s due diligence. Funds will be disbursed as GF completes project milestones.
What it means
The New York investment includes construction of a new state-of-the-art facility and capacity expansion and modernization of an existing facility; the Vermont investment involves modernization of GF’s existing operations there. Commerce estimates the two sites will generate approximately 9,000 construction jobs and approximately 1,000 manufacturing jobs. GF has planned roughly $13 billion in U.S. investment over the next 10-plus years. The award also supports the work of the Upstate New York Investing in America Workforce Hub. Commerce Secretary Gina Raimondo said the investment is “helping to secure a stable domestic supply of chips that are found in everything from home electronics to advanced weapons systems.” GF President and CEO Dr. Thomas Caulfield said the idea of strengthening U.S. semiconductor manufacturing “has been five-plus years in the making” and that bipartisan support allowed it to evolve into the CHIPS and Science Act.
Commerce noted that GF is the only U.S.-headquartered company among the four companies outside China providing current and mature foundry capabilities at scale. With this award, CHIPS for America has now awarded over $10 billion of the more than $36 billion in proposed incentives funding allocated to date, spanning announcements across 20 states. Commerce said CHIPS announcements to date are expected to create over 125,000 jobs in total, and that semiconductor and electronics companies have announced over $450 billion in private investments since the start of the Biden-Harris Administration.
Key facts
- Up to $1.5 billion — direct CHIPS Incentives Award to GlobalFoundries
- ~$13 billion — GF’s planned U.S. investment over 10-plus years (according to the company)
- ~9,000 — construction jobs estimated across New York and Vermont sites
- ~1,000 — manufacturing jobs estimated across New York and Vermont sites
- Sites: New York (new facility plus expansion and modernization of existing facility) and Vermont (modernization of existing operations)
- February 19, 2024 — date preliminary memorandum of terms was announced
- Over $10 billion — total CHIPS for America direct funding awarded to date, out of over $36 billion in proposed incentives allocated, across 20 states
- Over 125,000 — total jobs expected across all CHIPS announcements to date
Source: U.S. Department of Commerce / CHIPS for America / NIST news release (nist.gov)