The Biden administration has announced a significant investment of $1.5 billion in chipmaker GlobalFoundries to support the expansion of its production facilities in New York and Vermont. Additionally, the government will make $1.6 billion in loans available to the company. This move is part of the larger CHIPS and Science Act, which aims to allocate over $50 billion towards domestic computer chip manufacturing and research and development (R&D) investments.
GlobalFoundries plans to utilize the funds to upgrade its existing plants in Burlington, Vermont, and Malta, New York, and to construct a new plant in Malta. The expansion is expected to create 9,000 new jobs over the next decade, with an additional 1,500 jobs in the new manufacturing facilities.
As a condition for receiving funding under the CHIPS Act, GlobalFoundries has committed to investing $10 million in new skills training programs. Furthermore, the company will continue providing a $1,000-per-year child care subsidy for construction workers involved in the project.
The CHIPS Act, signed into law in 2022 with bipartisan support, represents a significant effort to modernize US manufacturing and enhance its competitiveness against China. In total, $280 billion will be allocated to this endeavor, with $52 billion exclusively dedicated to the semiconductor industry. The Biden administration expects the increased output from the new GlobalFoundries factories to have a wide-ranging impact, benefiting various sectors such as defense applications and the development of new electric vehicles.
This investment in GlobalFoundries signifies the US government’s commitment to rebuilding domestic chip manufacturing capabilities and reducing reliance on foreign suppliers. By supporting the expansion of key industry players like GlobalFoundries, the Biden administration aims to strengthen the country’s technological independence and boost its position in the global semiconductor market.
FAQ:
1. What is the Biden administration investing in and why?
The Biden administration is investing $1.5 billion in chipmaker GlobalFoundries to support the expansion of its production facilities in New York and Vermont. This investment is part of the CHIPS and Science Act, which aims to allocate over $50 billion towards domestic computer chip manufacturing and research and development (R&D) investments.
2. How will GlobalFoundries use the funds?
GlobalFoundries plans to utilize the funds to upgrade its existing plants in Burlington, Vermont, and Malta, New York, and to construct a new plant in Malta.
3. How many jobs are expected to be created from this investment?
The expansion is expected to create 9,000 new jobs over the next decade, with an additional 1,500 jobs in the new manufacturing facilities.
4. Are there any conditions for GlobalFoundries to receive funding?
Yes, as a condition for receiving funding under the CHIPS Act, GlobalFoundries has committed to investing $10 million in new skills training programs. Additionally, the company will continue providing a $1,000-per-year child care subsidy for construction workers involved in the project.
5. What is the CHIPS Act?
The CHIPS Act is a law signed in 2022 with bipartisan support that aims to modernize US manufacturing and enhance its competitiveness against China. It allocates $280 billion to this endeavor, with $52 billion exclusively dedicated to the semiconductor industry.
6. How does the Biden administration expect this investment to impact various sectors?
The increased output from the new GlobalFoundries factories is expected to have a wide-ranging impact, benefiting various sectors such as defense applications and the development of new electric vehicles.
7. What is the goal of the US government’s investment in GlobalFoundries?
The US government’s investment in GlobalFoundries signifies its commitment to rebuilding domestic chip manufacturing capabilities and reducing reliance on foreign suppliers. The aim is to strengthen the country’s technological independence and boost its position in the global semiconductor market.
Definitions:
– CHIPS Act: The CHIPS Act is a law that aims to modernize US manufacturing and enhance competitiveness in the semiconductor industry through significant investments and funding allocations.
– Semiconductor: A semiconductor is a material that has electrical conductivity between that of a conductor and an insulator. It is a crucial component in electronic devices, such as computer chips.
Suggested Related Links:
– White House: Official website for the White House, providing information on the Biden administration’s policies and initiatives.
– GlobalFoundries: Official website for GlobalFoundries, the chipmaker receiving the investment, for more information on their operations and projects.
The source of the article is from the blog krama.net