Semiconductor Giants To Open New Factories In New York State

By FrumNews.com Reporter

The U.S. Department of Commerce has proposed $1.5 billion in planned direct funding for New York-headquartered GlobalFoundries, one of the first sizable grants from a government program aimed at revitalizing semiconductor manufacturing in the United States.

The funding comes from the CHIPS Act, signed into law in 2022. After the COVID-19 Pandemic shut down global trade, creating a massive backlog of Semiconductor chips, forcing manufacturers to close factories and raise prices. After Russia invaded Ukraine in 2022, there were fears that China would successively invade Taiwan, which manufactures a commanding market of over 60% share of the world’s semiconductors and over 90% of the most advanced chips in PC’s phones and super computers, as well as cars and military hardware.

The CHIPS Act was a response to these fears and intended to revitalize the semiconductor foundry market. It aims to carry out activities relating to the creation of incentives to produce semiconductors in the United States

According to officials, GlobalFoundries would receive $1.5 billion in grants from the CHIPS Act and $1.6 billion in federal loans under a preliminary, non-binding agreement. In return for the subsidies, GlobalFoundries said it would invest about $12.5 billion in the projects to expand and create new manufacturing capacity and capabilities to produce more essential semiconductor chips in NY’s Capital Region and Vermont.

The factory will add capacity for essential chip manufacturing for its key markets. Currently, only four companies outside of China provide current and mature foundry capabilities at the scale of GlobalFoundries.

The approximately $1.5 billion in proposed CHIPS funding would be split across three projects:

• Malta, New York – New State-of-the-Art 300 mm Fab: The construction of a new, large-scale 300 mm fabrication facility that is expected to produce high-value technologies not currently available in the U.S. The new facility is intended to leverage existing infrastructure to expedite the path from construction to production.
• Malta, New York – Capacity Expansion for Automotive: The proposed expansion of the existing Malta, New York fabrication facility, which includes a strategic agreement with General Motors, to secure a dedicated supply of essential semiconductor technologies. This project would also support America’s economic and national security by expanding domestic capacity for semiconductors that are used in the U.S. critical infrastructure base. This expansion, combined with the new 300 mm fabrication facility, is expected to triple the existing capacity of the Malta campus over the next 10+ years. These two projects are expected to increase wafer production to 1 million per year once all phases are complete.
• Burlington, Vermont – Fab Revitalization: The revitalization of an existing fabrication facility in Burlington, Vermont, to commercialize new 200 mm technologies, creating the first U.S. facility capable of high-volume manufacturing of next-generation Gallium Nitride on Silicon for use in electric vehicles, power grid, 5G and 6G smartphones, and other critical technologies. The site will apply industry-leading sustainability practices, including the use of 100% carbon-neutral energy and the development of an onsite solar system to supply up to 9% of the site’s annual energy.

The billions in subsidies offer a preview ahead of President Joe Biden’s administration’s expected announcement for Micron Technology, which plans to build a much larger $100 Billion complex of computer chip plants in New York.

“GlobalFoundries is proud to announce this proposed funding from the Department of Commerce and New York State and appreciates the collaboration of the CHIPS Office and the Empire State Development Corporation throughout this process… They will also play an important role in making the U.S. semiconductor ecosystem more globally competitive and resilient and cements the New York Capital Region as a global semiconductor hub,” said Dr. Thomas Caulfield, president and CEO of GlobalFoundries. “With new onshore capacity and technology on the horizon, as an industry we now need to turn our attention to increasing the demand for U.S.-made chips, and to growing our talented U.S. semiconductor workforce.”

“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 Secretary of Commerce Gina Raimondo. “We’re working to onshore these critical technologies in order to bolster the supply of domestic chips that are essential to manufacturing cars, electronics, and national defense systems in New York, Vermont, and states across the country.”

“New York State is becoming the best place on earth to build a business,” said Governor Kathy Hochul. “Thanks to our pro-business policies, commitment to innovation and best-in-the-nation workforce, green jobs and high-tech manufacturers are flocking to the Empire State. This $11 billion investment from GlobalFoundries is a game changer, and with the partnership of the Biden administration, New York’s congressional delegation, and all of our local stakeholders, the best is yet to come.”