The Biden administration has announced its plan to inject $1.5 billion into GlobalFoundries, a leading computer chip company, to support the expansion of domestic chip production in New York and Vermont. This move comes as part of the broader efforts of the government to revitalize the manufacturing of computer chips in the United States and promote research and development in the industry.
The funding, provided under the 2022 CHIPS and Science Act, marks the third award of direct financial support to a semiconductor company. With this investment, the government aims to bolster the production capabilities of GlobalFoundries, enabling them to manufacture essential chips that power various applications such as military equipment, electric vehicles, smartphones, and faster internet connections.
In addition to the direct funding, the government will also offer loans worth up to $1.6 billion, resulting in a combined public and private investment of approximately $12.5 billion. This financial support will aid GlobalFoundries in constructing a new advanced chip factory in Malta, New York, increasing production at its existing plant, and revitalizing its plant in Burlington, Vermont.
Notably, these projects are expected to create 1,500 manufacturing jobs and over 9,000 construction jobs in the next decade. As part of the deal, GlobalFoundries will allocate $10 million for worker training and extend its current $1,000 annual subsidy for childcare and child support services to construction workers.
Senate Majority Leader Chuck Schumer, a key proponent of the law enabling the funding of chip factories, emphasizes the importance of investing in the semiconductor industry for the economic and national security of the United States. He emphasizes that the country should not be vulnerable to disruptions, as experienced during the pandemic when auto plants faced chip shortages.
The investment in GlobalFoundries aligns with the Democrats’ long-term vision to drive growth by making substantial investments in critical sectors such as computer chip production and infrastructure. These investments reflect their commitment to secure the economic future of the nation and ensure that the United States remains competitive in the global market.
The Biden administration’s support for the expansion of domestic semiconductor production demonstrates its dedication to strengthening the nation’s technological capabilities and fostering innovation. Through these investments, the government aims to create a promising future for the American people while protecting their interests against economic competition from other countries.
FAQ section:
1. What is the Biden administration’s plan for GlobalFoundries?
– The Biden administration plans to inject $1.5 billion into GlobalFoundries, a computer chip company, to support the expansion of domestic chip production in New York and Vermont.
2. What is the purpose of the funding?
– The funding aims to revitalize the manufacturing of computer chips in the United States and promote research and development in the industry.
3. How is the funding provided?
– The funding is provided under the 2022 CHIPS and Science Act, as the third award of direct financial support to a semiconductor company.
4. What will the government offer in addition to direct funding?
– The government will also offer loans worth up to $1.6 billion, resulting in a combined public and private investment of approximately $12.5 billion.
5. How will GlobalFoundries utilize the financial support?
– GlobalFoundries will use the support to construct a new advanced chip factory in Malta, New York, increase production at its existing plant, and revitalize its plant in Burlington, Vermont.
6. What are the expected outcomes of these projects?
– These projects are expected to create 1,500 manufacturing jobs and over 9,000 construction jobs in the next decade.
7. What measures will GlobalFoundries take for worker support?
– GlobalFoundries will allocate $10 million for worker training and extend its current $1,000 annual subsidy for childcare and child support services to construction workers.
8. Why is investing in the semiconductor industry important?
– Investing in the semiconductor industry is important for the economic and national security of the United States, as it ensures the country is not vulnerable to disruptions, such as chip shortages experienced during the pandemic.
9. How does the investment align with Democrats’ vision?
– The investment aligns with the Democrats’ long-term vision to drive growth by making substantial investments in critical sectors such as computer chip production and infrastructure.
10. What is the goal of the Biden administration’s support for domestic semiconductor production?
– The goal is to strengthen the nation’s technological capabilities, foster innovation, and create a promising future for the American people while protecting their interests against economic competition from other countries.
Definitions:
– Computer chips: Electronic components made from semiconducting material used in various applications such as military equipment, electric vehicles, smartphones, and internet connections.
– Semiconductor: A material with properties between those of a conductor and an insulator that is used in the production of computer chips.
– Research and development: Activities aimed at obtaining new knowledge and developing new products, processes, or services.
– Manufacturing: The production of goods on a large scale using labor, machines, and materials.
Suggested related links:
– GlobalFoundries website
– The White House
– Sen. Chuck Schumer’s website
The source of the article is from the blog girabetim.com.br