Domestic Semiconductor Production: U.S. Awards $1.5 Billion to GlobalFoundries

by | 19. Feb 2024 - 11:39 | Economy

The company also plans to expand gallium nitride silicon semiconductor production.

The Biden Administration will award GlobalFoundries with $1.5 billion to strengthen domestic semiconductor production and bolstering critical supply chains, according to a statement by Vice President Kamala Harris. Under a preliminary agreement, GlobalFoundries is set to create a new advanced semiconductor production facility in Malta, New York. In addition, the funding will allow the company to expand existing operations in New York and Vermont. Harris added that the chips made by GlobalFoundries are critical components for developing and manufacturing sophisticated technologies such as satellites and space communications and, thus, essential for national defense and security.

The funding is part of the Chips and Science Act, signed into law by President Biden to modernize and expand the domestic production of semiconductors and computer chips. Under the act, GlobalFoundries has already received multiple investments, including $35 million to develop state-of-the-art gallium nitride (GaN) silicon semiconductors at its plant in Vermont, which will now be expanded.

Gallium nitride enables particularly energy-efficient chips with high performance in the smallest spaces. Applications include 5G and 6G mobile communications, the automotive industry, and critical infrastructures such as power grids. GaN chips are also increasingly used in aerospace and defense applications. 

Photo: iStock/Ivan-balvan

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