GlobalFoundries Announces $16 Billion Investment to Boost U.S. Chip Manufacturing
October 19, 2022
In a significant move to enhance domestic chip production, GlobalFoundries has unveiled plans to invest $16 billion in its operations across New York and Vermont. The investment, announced on Wednesday, is primarily aimed at modernizing its manufacturing facilities in Malta, New York, and Essex Junction, Vermont, with $13 billion earmarked for upgrades.
Additionally, $3 billion of the funding will be allocated to research and development in the Northeast, although specifics on the Vermont allocation remain unclear. This investment comes amidst a bipartisan push to strengthen U.S. semiconductor manufacturing, a critical sector that has faced supply chain challenges.
Tim Breen, CEO of GlobalFoundries, expressed pride in the company’s collaborations with tech leaders such as Apple and General Motors, reaffirming a commitment to American-made technology. "The AI revolution is driving strong, durable demand for GF’s technologies," Breen noted, highlighting innovations in silicon photonics and Gallium Nitride (GaN) for power applications.
This announcement follows a positive trend for GlobalFoundries’ Essex Junction facility—one of Vermont’s largest employers. Earlier this year, the company received $1.5 billion through the 2022 CHIPS and Science Act, with $125 million directed to its Vermont plant. Furthermore, GlobalFoundries secured nearly $10 million in federal funds to enhance operations in Essex Junction.
The company plays a pivotal role in Vermont’s Gallium Nitride Tech Hub, collaborating with local entities, including the University of Vermont, to develop advanced semiconductor technology. Despite a setback when the Biden administration’s funding for the tech hub was revoked by the Trump administration, the initiative is expected to receive renewed focus with the new investment.
As GlobalFoundries gears up for these expansions, it signals a new era for semiconductor manufacturing in the United States, bolstering economic resilience and innovation.
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