GlobalFoundries, the semiconductor manufacturing company that spun out from AMD in 2009, is set to receive $1.5 billion in funding from the Biden administration to bolster its semiconductor production capacity. The funding is part of the CHIPS Act and will be allocated across three projects that aim to enhance the company’s facilities and capabilities.
The first project involves the construction of a new fabrication facility in Malta, New York. This facility will focus on producing “high value technologies not currently available in the US” for various industries including automotive, aerospace, defense, and AI. Construction is set to begin in 2025.
In addition to the new facility, GlobalFoundries plans to expand its existing facility in Malta by incorporating technology from its plants in Singapore and Germany. The goal is to increase semiconductor production for use in cars and trucks. The combined expansion and new fab will triple the capacity of the Malta campus over the next decade, with a projected annual wafer production of 1 million.
The remaining funding will be utilized to modernize an existing fab in Burlington, Vermont. This facility will focus on high-volume manufacturing of next-generation gallium nitride on silicon semiconductors for electric vehicles, smartphones, and the power grid. Notably, the plant will use entirely carbon-free energy and will be supported by an on-site solar system.
To support these projects, GlobalFoundries plans to invest more than $12 billion over the course of the next 10-plus years. The state of New York will also provide support, including $575 million in performance-based Green CHIPS tax credits and a minimum investment of $30 million from the New York Power Authority.
The initiatives are anticipated to create approximately 1,500 manufacturing positions and 9,000 construction jobs over the next decade. These positions will offer fair wages, benefits, and childcare services. The investment aligns with the objectives of the CHIPS Act, which seeks to strengthen the domestic semiconductor supply chain.
GlobalFoundries, being one of the few companies capable of delivering current and mature foundry capabilities outside of China, plays a crucial role in reducing reliance on foreign sources for semiconductors. The company has already formed beneficial partnerships with major automakers such as GM and Ford to address chip shortages and ensure a stable supply for the automotive industry.
By investing in GlobalFoundries’ expansion, the Biden administration aims to build a resilient and advanced semiconductor industry in the United States, ultimately boosting the country’s technological capabilities and economic growth.
Frequently Asked Questions (FAQs)
1. What is GlobalFoundries?
GlobalFoundries is a semiconductor manufacturing company that spun out from AMD (Advanced Micro Devices) in 2009. It plays a crucial role in reducing reliance on foreign sources for semiconductors.
2. What funding will GlobalFoundries receive from the Biden administration?
GlobalFoundries is set to receive $1.5 billion in funding from the Biden administration as part of the CHIPS (Creating Helpful Incentives to Produce Semiconductors) Act.
3. How will the funding be allocated?
The funding will be allocated across three projects. One involves the construction of a new fabrication facility in Malta, New York, while another focuses on expanding the existing facility in Malta. The remaining funding will be used to modernize an existing fab in Burlington, Vermont.
4. What industries will benefit from GlobalFoundries’ new facility?
The new facility in Malta will focus on producing “high value technologies not currently available in the US” for industries such as automotive, aerospace, defense, and AI.
5. What is the aim of expanding GlobalFoundries’ facilities?
Expanding the facilities aims to increase semiconductor production for use in cars, trucks, electric vehicles, smartphones, and the power grid. The goal is to strengthen the domestic semiconductor supply chain and reduce reliance on foreign sources.
6. How much will GlobalFoundries invest in these projects?
GlobalFoundries plans to invest more than $12 billion over the next 10-plus years to support these projects.
Definitions:
– Semiconductor: A material that has electrical conductivity between a conductor and an insulator. It is used in the production of electronic devices.
– Wafer: A thin slice of semiconductor material, typically made of silicon, on which the electronic components of an integrated circuit are fabricated.
– Gallium Nitride (GaN): A wide bandgap semiconductor material used in the production of power electronics, LEDs, and RF (radio frequency) components.
– Green CHIPS tax credits: Performance-based tax credits provided by the state of New York to incentivize green and sustainable investments in the semiconductor industry.
Suggested Related Links:
1. GlobalFoundries
2. whitehouse.gov
3. CHIPS Act
The source of the article is from the blog newyorkpostgazette.com