The U.S. government has announced a significant investment of $1.5 billion to support GlobalFoundries, the world’s third-largest contract chipmaker, in expanding semiconductor production. This funding aims to strengthen domestic supply chains and improve the country’s technological capabilities.
As part of the agreement with the Commerce Department, GlobalFoundries will construct a new semiconductor production facility in Malta, New York, while also expanding its existing operations in Burlington, Vermont. In addition to the grant, $1.6 billion in loans will be made available, with the hope of generating a total investment of $12.5 billion across both states.
The projects funded under the CHIPS and Science Act are projected to create more than 10,000 jobs over the next ten years. Biden administration officials emphasize that these positions will offer fair wages and benefits such as childcare support.
The chips manufactured by GlobalFoundries in these new facilities are crucial for national security. They are used in various applications, including satellite and space communications, the defense industry, and everyday devices like cars, electric vehicles, and network connections. The importance of a secure and reliable supply of these chips cannot be overstated.
Commerce Secretary Gina Raimondo expressed the government’s commitment to further supporting the semiconductor manufacturing industry. The current investment is part of a $39 billion program aimed at boosting the sector. Raimondo assured that this is just the beginning, and several more funding awards will be granted in the coming weeks and months.
The expansion of the Malta facility will play a vital role in ensuring a stable supply of chips for auto suppliers and manufacturers like General Motors (GM). Raimondo emphasized that this investment will prevent future chip shortages that caused disruptions in the automotive industry during the COVID-19 pandemic.
Moreover, the upgraded facility in Burlington will become the first high-volume manufacturing site capable of producing next-generation gallium nitride on silicon semiconductors. These advanced chips are used in electric vehicles, the power grid, and smartphones, demonstrating the pivotal role of this investment in driving technological advancements.
By supporting GlobalFoundries and other domestic semiconductor manufacturers, the U.S. government seeks to bolster national security, create employment opportunities, and ensure the country’s competitiveness in the global technology landscape. This investment is a crucial step toward maintaining a sustainable and resilient supply of essential microchips.
FAQ Section:
1. What is the purpose of the U.S. government’s $1.5 billion investment in GlobalFoundries?
The investment aims to support GlobalFoundries, the world’s third-largest contract chipmaker, in expanding semiconductor production. It is intended to strengthen domestic supply chains and improve the country’s technological capabilities.
2. Where will GlobalFoundries construct a new semiconductor production facility?
GlobalFoundries will construct a new semiconductor production facility in Malta, New York, as part of the agreement with the Commerce Department.
3. What other expansion plans does GlobalFoundries have?
In addition to the new facility in Malta, GlobalFoundries will also expand its existing operations in Burlington, Vermont.
4. How much investment is expected to be generated in total?
With the $1.5 billion grant and $1.6 billion in loans, it is hoped that a total investment of $12.5 billion will be generated across both states.
5. How many jobs are projected to be created through these projects?
The projects funded under the CHIPS and Science Act are projected to create more than 10,000 jobs over the next ten years.
6. What are the applications of the chips manufactured by GlobalFoundries?
The chips are used in various applications, including satellite and space communications, the defense industry, and everyday devices like cars, electric vehicles, and network connections.
7. What is the significance of this investment in ensuring national security?
A secure and reliable supply of these chips is crucial for national security, as they are used in critical industries and technologies.
8. How does this investment benefit the automotive industry?
The expansion of the Malta facility will ensure a stable supply of chips for auto suppliers and manufacturers like General Motors (GM), preventing future chip shortages that caused disruptions during the COVID-19 pandemic.
9. What role does the upgraded facility in Burlington play?
The upgraded facility in Burlington will become the first high-volume manufacturing site capable of producing next-generation gallium nitride on silicon semiconductors. These advanced chips are used in electric vehicles, the power grid, and smartphones.
10. What are the objectives of the U.S. government in supporting semiconductor manufacturers like GlobalFoundries?
The U.S. government aims to bolster national security, create employment opportunities, and ensure the country’s competitiveness in the global technology landscape by supporting domestic semiconductor manufacturers.
Key Terms/Jargon:
– GlobalFoundries: The world’s third-largest contract chipmaker that will receive the U.S. government’s investment to expand semiconductor production.
– Semiconductor: A material that has an electrical conductivity between that of a conductor and an insulator. It is used to make electronic devices.
– CHIPS and Science Act: Legislation that provides funding for the semiconductor manufacturing industry to strengthen domestic supply chains and improve technological capabilities.
– Gallium Nitride: A compound semiconductor material used in the production of advanced chips for various applications.
– National Security: The protection of a nation’s interests and its citizens from threats both internal and external.
Suggested Related Links:
– GlobalFoundries Official Website
– U.S. Department of Commerce Official Website
– White House Official Website
The source of the article is from the blog zaman.co.at