U.S. semiconductor maker GlobalFoundries Inc (NASDAQ:GFS) is the first recipient of a government grant from the Commerce Department under the Biden administration’s $53-billion CHIPS Act.
GlobalFoundries announced Monday it would receive $1.5 billion to support the expansion of its production facility in Malta, New York, including the construction of a new fabrication plant. The company will also use the funds to help modernize and expand capacity at its Vermont plant.
Alongside the grant, GlobalFoundries said it plans to invest more than $12 billion over the next decade as it seeks to keep pace with demand for chips from the automotive, aerospace, defense and artificial intelligence industries.
Also Read: Why The CHIPS Act Is Good News For Intel, Bad News For Nvidia, Advanced Micro Devices
What Is The CHIPS Act?
The CHIPS Act, launched in 2022, was enacted in response to the U.S.’s dwindling share in global semiconductor production as companies moved manufacturing facilities to cheaper sites in Asia and other regions.
The industry suffered a crippling supply chain crisis as the economy recovered from the COVID-19 pandemic. While demand soared in post-lockdown U.S. and Europe, manufacturing facilities in Asia — …
Leave a Reply