Chipmaker GlobalFoundries to receive $3.1B from US government

By Ovunc Kutlu

ISTANBUL (AA) - American semiconductor manufacturing and design company GlobalFoundries will receive a total of $3.1 billion subsidies from the US government.

The chipmaker will receive $1.5 billion in federal grants to fund multiple projects in the states of New York and Vermont that are expected to create 10,500 construction and manufacturing jobs, the US Commerce Department said Monday.

The amount is a direct funding under the US' CHIPS and Science Act to strengthen domestic supply, increase the nation's competitiveness in semiconductor production, and support economic and national security capabilities, it added.

In addition to the direct funding, the CHIPS Program Office will make approximately $1.6 billion in loans available to GlobalFoundries.

"Semiconductors are in everything from our cellphones, to refrigerators, to cars, and our most advanced weapons systems, and access to them carries important economic and national security implications. It was the shortages of semiconductors during the COVID-19 pandemic that raised prices for consumers and led to the shutdown of automobile manufacturing sites across the country," said Commerce Secretary Gina Raimondo.

Vice President Kamala Harris said semiconductors are "the brain of modern technology," adding: "While they are no larger than a fingernail and no thicker than a piece of paper, they are essential to every electronic device that we currently use – from computers and televisions to cars and washing machines."

The CHIPS and Science Act was signed into law by President Joe Biden in August 2022, as it sets aside $52.7 billion to increase production of US-made semiconductors, address supply chain vulnerabilities by producing more goods in the US, and bolster domestic scientific research.