US government finalizes $1.5 billion CHIPS award to GlobalFoundries

Funding will support $13 billion investment in U.S. semiconductor manufacturing

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The Biden-Harris Administration has finalized a CHIPS Incentives Award of up to $1.5 billion to GlobalFoundries (GF) under the CHIPS and Science Act, aimed at strengthening U.S. semiconductor manufacturing.

Here are some key points:

• This funding supports GF's $13 billion investment over the next decade to expand and modernize its facilities in New York and Vermont, which produce critical chips for automotive, aerospace, defense, and communications sectors.

• The initiative seeks to reduce U.S. reliance on East Asia, which currently accounts for 75% of global semiconductor production, by enhancing domestic manufacturing capacity and supply chain resilience.

• GF is one of only four non-Chinese companies with large-scale foundry capabilities and the only one headquartered in the U.S., making it vital to national security and economic competitiveness.

• The investment could create 10,000 construction and manufacturing jobs, including 1,000 permanent roles.

• The announcement follows other CHIPS Act grants, such as a $6.6 billion award to Taiwan's TSMC, further securing U.S. semiconductor leadership.

• With this action, President Joe Biden seeks to solidify his legacy ahead of Donald Trump's return to the White House.