US Presents USD 1.5 Billion to GlobalFoundries For Semiconductor Production By CIOTechOutlook Team

US Presents USD 1.5 Billion to GlobalFoundries For Semiconductor Production

CIOTechOutlook Team | Tuesday, 20 February 2024, 06:14 IST

The US government is granting $1.5 billion to GlobalFoundries to sponsor semiconductor production, the principal significant honor from a $39 billion asset supported by Congress in 2022 to reinforce homegrown chip creation.

GlobalFoundries, the world's third-biggest agreement chipmaker, will fabricate another semiconductor creation office in Malta, New York, and grow existing tasks there and in Burlington, Vermont, as per a primer concurrence with the Commerce Department.

The department in January announced a $162 million planned award to Microchip Technology and $35 million to a BAE Systems facility in New Hampshire in December, as per ET.

The $1.5 billion GlobalFoundries award will be joined by $1.6 billion in accessible advances, with the financing expected to produce $12.5 billion in general possible venture across the two states, the division said.

"The chips that GlobalFoundries will make in these new facilities are essential chips to our national security," Commerce Secretary Gina Raimondo added.

Raimondo told this month the agency is in active talks with numerous applicants and expects to make several announcements by the end of March.

"We're in the process of really complicated, challenging negotiations with these companies," Raimondo added. "These are highly complex, first-of-their-kind facilities. The kind of facilities that TSMC, Samsung, Intel, are proposing to do in the United States - these are new-generation investments - size, scale complexity that's never been done before in this country."

The GlobalFoundries chips are utilized in satellite and space correspondences and the protection business alongside vulnerable side location and crash admonitions in vehicles, alongside Wi-Fi and cellular connections.

"As an industry, we now need to turn our attention to increasing the demand for US-made chips, and to growing our talented US semiconductor workforce," GlobalFoundries CEO Thomas Caulfield said in a statement.