Government Investment to Boost Domestic Semiconductor Manufacturing
WASHINGTON – In a move to bolster domestic production of computer chips, the Biden administration has announced plans to provide $1.5 billion to GlobalFoundries. This funding aims to support the expansion of the company’s facilities in New York and Vermont, under the 2022 CHIPS and Science Act.
Commerce Secretary Gina Raimondo highlighted the significance of this investment, stating that the chips produced by GlobalFoundries are crucial for various sectors, including military equipment, electric vehicles, and telecommunications.
Boosting Manufacturing and Job Creation
The financial support includes $1.6 billion in loans, with a total investment of approximately $12.5 billion from both public and private sources. GlobalFoundries plans to utilize these funds for constructing a new advanced chip factory in Malta, New York, expanding production at its existing facility, and revitalizing its plant in Burlington, Vermont.
These projects are expected to generate 1,500 manufacturing jobs and 9,000 construction jobs over the next decade. Additionally, a portion of the funding will be allocated for worker training and child care support services.
Securing Economic Stability and National Security
Senate Majority Leader Chuck Schumer emphasized the importance of investing in semiconductor technology to safeguard the U.S. economy and national security. He underscored the need to prevent other countries from gaining an economic advantage over the United States, particularly in light of recent global disruptions in chip supply chains.
With bipartisan support for these investments, lawmakers aim to address immediate economic concerns such as inflation while laying the groundwork for sustained growth and competitiveness in the future.
