The U.S. Commerce Department said Wednesday it has ended a $1.5 billion government subsidy for GlobalFoundries to expand semiconductor production in Malta, New York and Vermont.
The binding contract for New York-based GlobalFoundries, the world’s third-largest contract chipmaker, finalizes a preliminary award announced in February after the company said it was investing $13 billion over the next 10 years in its US manufacturing plants serving the automotive, smart mobile devices, Internet of Things, data centers and aerospace and defense sectors.
Commerce Secretary Gina Raimondo told Reuters last week that the department is racing to complete as many final agreements with beneficiaries of the $52.7 billion “Chips and Science” program created in 2022 as possible before the end of the Biden administration on January 20. “We are working as hard as we can,” Raimondo said.
The Commerce award will support the expansion of GlobalFoundries’ factory in Malta, New York, by incorporating technologies already used at GF facilities in Singapore and Germany to provide chips to the US automotive industry. New York state has also committed to providing another $550 million in support, GF stated.
GF also plans to build a new factory in Malta, New York “in line with market conditions and customer demand” to produce chips for the automotive industry, artificial intelligence, aerospace and defense. are at the core of the U.S. economy, supply chain and national security,” said GF CEO Thomas Caulfield, stating that state and federal funding is key “to ensure our customers have the American-made chips that they need to be successful and win.”
Last week, the Commerce Department finalized its first major award: a $6.6 billion government subsidy to Taiwan Semiconductor Manufacturing Co. The first final awards will be handed out just weeks before President-elect Donald Trump, who criticized the program , assume office.
The Commerce Department has allocated $36 billion for chip projects, including $6.4 billion for Samsung in Texas, $8.5 billion for Intel and $6.1 billion for Micron Technology.
On Nov. 1, the Commerce Department fined GlobalFoundries $500,000 for shipping unauthorized chips to a subsidiary of blacklisted Chinese chipmaker SMIC. GF said he regretted the involuntary action.
With information from Reuters.
Subscribe to our YouTube channel and don’t miss our content
Follow business information in our specialized section
