GlobalFoundries, a leading semiconductor manufacturer, has secured up to $1.5 billion in funding from the CHIPS and Science Act to support its expansion plans in New York and modernization efforts in Vermont. The company will use this investment to strengthen supply chains and support customers across various markets, including automotive, smart mobile devices, internet of things, datacenters, and aerospace and defense.
Dr. Thomas Caulfield, President and CEO of GlobalFoundries, praised the bipartisan support for the CHIPS and Science Act, which has enabled the company to secure this critical funding. The investment will support three key projects: expanding its existing fab in Malta, New York; modernizing its Vermont facility to produce next-generation gallium nitride semiconductors; and constructing a new state-of-the-art fab on its Malta campus. These projects represent over $13 billion in investments across both sites over the next decade, creating nearly 1,000 direct manufacturing jobs and more than 9,000 construction jobs.
Strengthening US Semiconductor Manufacturing with CHIPS Act Funding
The United States Department of Commerce has announced an award agreement with GlobalFoundries (GF) for up to $1.5 billion in direct funding through the CHIPS and Science Act. This significant investment will support GF’s expansion plans in New York and modernization efforts in Vermont, ultimately strengthening supply chains and supporting customers across various vital end-markets.
The CHIPS and Science Act award is a culmination of bipartisan efforts over five-plus years to strengthen US semiconductor manufacturing. The funding will enable GF to expand its essential chip manufacturing and technology development in the US, ensuring a secure and reliable supply of domestically manufactured chips for critical industries such as automotive, smart mobile devices, IoT, datacenters, and aerospace and defense.
GF’s president and CEO, Dr. Thomas Caulfield, emphasized the significance of this investment, stating that GF’s essential chips are at the core of US economic, supply chain, and national security. The company appreciates the support and funding from both the US government and the states of New York and Vermont, which will be utilized to ensure customers have the American-made chips they need to succeed.
Expansion and Modernization Plans
The CHIPS and Science Act award will support three key projects: the expansion of GF’s existing fab in Malta, New York; the modernization and upgrading of GF’s existing fab in Essex Junction, Vermont; and the construction of a new state-of-the-art fab on GF’s Malta, New York, campus.
The expansion of the Malta fab will add critical technologies already in production at GF’s Singapore and Germany facilities, enabling a secure and reliable supply of domestically manufactured essential chips for the US auto industry. The modernization of the Vermont fab will expand production capacity and create one of the world’s leading facilities capable of high-volume manufacturing of next-generation gallium nitride (GaN) semiconductors.
The construction of the new fab on the Malta campus will meet expected demand for US-made essential chips across a broad range of markets and applications, including automotive, AI in the data center and at the edge, as well as aerospace and defense. The two New York-based projects are expected to triple the existing capacity of GF’s Malta campus over the next 10-plus years, aligning with expected market requirements and customer demand.
Investment and Job Creation
The aggregate investment for these projects represents more than $13 billion over the next 10-plus years across GF’s two US sites. This includes the $1.5 billion CHIPS and Science Act award, more than $550 million in support from the New York State Green CHIPS Program, as well as funding and support from Vermont, GF ecosystem partners, key strategic customers, and other incentives.
These investments are expected to create close to 1,000 direct manufacturing jobs and more than 9,000 construction jobs over the life of these projects. The company’s fabs in New York and Vermont are both Trusted Foundry accredited and manufacture secure chips in partnership with the US government.
Workforce Development and Sustainability
As part of its CHIPS and Science Act award, GF will continue to invest in and develop new workforce development efforts, including curriculum development, internship and apprenticeship programs, K-12 STEM outreach, as well as additional education and training programs. This commitment aims to attract and cultivate a pipeline of semiconductor talent in New York and Vermont.
GF’s design and construction plans for its expansions and modernizations in New York and Vermont will reflect the company’s sustainability goals for future operations, consistent with its longstanding commitment to communities and the environment.
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