U.S. Government Grants Funding to GlobalFoundries to Boost Semiconductor Production

The U.S. government has allocated US$1.5 billion to GlobalFoundries GFS-Q as part of its efforts to strengthen domestic supply chains in the wake of the COVID-19 pandemic. The funding aims to support the expansion of semiconductor production and address the vulnerabilities exposed during the global health crisis.

GlobalFoundries, the world’s third-largest contract chipmaker, has reached a preliminary agreement with the Commerce Department to construct a new semiconductor production facility in Malta, N.Y., and expand its existing operations in Burlington, Vt. Along with the grant, there will also be US$1.6 billion available in loans, with the combined funding expected to drive an overall potential investment of US$12.5 billion across the two states.

This initiative, funded under the CHIPS and Science Act, is projected to create over 10,000 jobs over the span of a decade. The Biden administration emphasizes that these positions will offer fair wages and benefits, including child care support.

The chips produced by GlobalFoundries in these new facilities will serve critical purposes in national security, according to Commerce Secretary Gina Raimondo. These small chips, the size of a fingernail, are integral to satellite and space communications, as well as the defense industry. They also find everyday application in areas such as automotive blind spot detection, collision warnings, and WiFi and cellular connectivity.

Thomas Caulfield, president and CEO of GlobalFoundries, underscores the need to not only expand semiconductor production but also stimulate demand for U.S.-made chips. The company recently launched a $4 billion semiconductor fabrication plant in Singapore as part of its global manufacturing expansion.

Secretary Raimondo states that this is only the beginning of the government’s efforts to boost semiconductor manufacturing through the CHIPS program. Several funding awards will be announced in the coming weeks and months as part of the government’s $39 billion program.

The expansion of the Malta facility will secure a reliable supply of chips for auto suppliers and manufacturers like General Motors (GM), helping to prevent chip shortages that disrupted car production during the pandemic. Additionally, the revamped Burlington facility will be the first in the United States capable of high-volume manufacturing of next-generation gallium nitride on silicon semiconductors, which are crucial for electric vehicles, the power grid, and smartphones.

This funding allocation marks a significant step towards strengthening the semiconductor industry within the United States and ensuring the country’s self-sufficiency in critical technologies.

FAQ Section

1. What is the purpose of the U.S. government’s funding allocation to GlobalFoundries?
– The funding aims to support the expansion of semiconductor production and address vulnerabilities in domestic supply chains exposed during the COVID-19 pandemic.

2. How much funding has been allocated to GlobalFoundries?
– The U.S. government has allocated $1.5 billion to GlobalFoundries, along with an additional $1.6 billion available in loans.

3. What will GlobalFoundries use the funding for?
– GlobalFoundries plans to construct a new semiconductor production facility in Malta, N.Y., and expand its existing operations in Burlington, Vt. The funding will drive an overall potential investment of $12.5 billion across the two states.

4. How many jobs are projected to be created as a result of this initiative?
– Over the span of a decade, this initiative is projected to create over 10,000 jobs that offer fair wages and benefits, including child care support.

5. What critical purposes do the chips produced by GlobalFoundries serve?
– According to Commerce Secretary Gina Raimondo, these small chips are integral to national security, satellite and space communications, the defense industry, automotive blind spot detection, collision warnings, and WiFi and cellular connectivity.

6. What is the significance of the Malta facility expansion?
– The expansion of the Malta facility will ensure a reliable supply of chips for auto suppliers and manufacturers like General Motors (GM), to prevent chip shortages that disrupted car production during the pandemic.

7. What is the significance of the Burlington facility revamp?
– The revamped Burlington facility will be the first in the United States capable of high-volume manufacturing of next-generation gallium nitride on silicon semiconductors, which are crucial for electric vehicles, the power grid, and smartphones.

Definitions:
– Semiconductor production: The manufacturing of electronic components called semiconductors, which are the building blocks of many electronic devices.
– CHIPS and Science Act: The legislation that provides funding and support for the expansion of semiconductor production, including the allocation of funds to companies like GlobalFoundries.
– Gallium nitride on silicon semiconductors: Next-generation semiconductors that use gallium nitride as a material on a silicon substrate. They offer improved performance and efficiency compared to traditional silicon chips.

The source of the article is from the blog bitperfect.pe