Press Release
☷Biden Harris Administration Announces Preliminary Terms with GlobalFoundries to Strengthen Domestic Legacy Chip Supply for U S Auto and Defense Industries
U.S. Department of Commerce ( By Press Release office)
Feb 21,2024
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The Biden - Harris Administration has announced plans to strengthen the supply of domestic legacy chips for the U . S . auto and defense industries through a partnership with GlobalFoundries . The U . S . Department of Commerce will provide $1 . 5 billion in potential funding to support projects in New York and Vermont , creating around 10 , 500 construction and manufacturing jobs . This agreement aims to enhance U . S . supply chain resilience , competitiveness in semiconductor production , and economic and national security capabilities . The funding will support the expansion and modernization of GlobalFoundries ' manufacturing sites in the U . S . , which produce essential automotive , communications , and defense technologies . This initiative is part of the bipartisan CHIPS and Science Act signed by President Biden to strengthen U . S . supply chains and create high - paying jobs . GlobalFoundries ' chips are crucial for various everyday applications , such as automotive safety features , smartphones , electric vehicles , and Wi - Fi connections . The funding will also support the expansion of a facility for General Motors , with whom GlobalFoundries has a strategic supply agreement . This partnership aims to address semiconductor shortages that have impacted various industries during the COVID - 19 pandemic . Vice President Kamala Harris announced a $5 billion investment to boost semiconductor production in the U . S . , create jobs , and strengthen supply chains . This initiative aims to support economic growth and opportunity across the country . The importance of semiconductors was highlighted by Secretary of Commerce Gina Raimondo , who emphasized the need to address shortages that affected various industries during the pandemic . The CHIPS and Science Act is working towards making the U . S . a leader in semiconductor development and manufacturing . GlobalFoundries is set to benefit from this proposed funding , with plans to expand facilities and create jobs in New York and Vermont . CEO Dr . Thomas Caulfield expressed gratitude for the collaboration and emphasized the importance of onshoring semiconductor technology for national security and economic stability . This investment is expected to make the U . S . semiconductor industry more competitive and resilient . These projects are expected to create around 1 , 500 manufacturing jobs and 9 , 000 construction jobs over the next decade . Additionally , GF will receive approximately $10 million in workforce development funding to collaborate with local organizations and provide the necessary talent for their facilities . GF is also expanding its Maintenance Technician Apprenticeship Program , which is the first registered semiconductor apprenticeship program in the U . S . and has already graduated its first batch of apprentices in 2022 . Recognizing how important child care is for its operations , the company will keep providing a $1 , 000 annual subsidy and child care support concierge service to its growing facility workforce . These benefits will also be extended to construction workers . The company is working under a Project Labor Agreement in New York and is in the process of setting one up in Vermont for this project . The CHIPS Program Office could potentially offer around $1 . 6 billion in loans to GF under the PMT . The total investment for the projects combined could be about $12 . 5 billion . The Department may offer a PMT to applicants after a successful review of their full application . The PMT outlines the key terms for a CHIPS incentives award . After the PMT is signed , the Department conducts a thorough due diligence process on the proposed project . If the due diligence phase goes well , the Department may finalize award documents with the applicant . The terms of the final award may differ from those in the PMT . CHIPS for America has received a lot of interest and applications , and is evaluating them to determine which projects will benefit U . S . national and economic security . The announcement with GlobalFoundries is the third PMT announcement under the CHIPS and Science Act , with more expected in 2024 . CHIPS for America is part of President Biden ' s plan to invest in America , create jobs , stimulate private sector investment , and revitalize communities . It includes the CHIPS Program Office for manufacturing incentives and the CHIPS Research and Development Office for R&D programs , both housed within NIST at the Department of Commerce . NIST promotes U . S . innovation and industrial competitiveness through advancing measurement science , standards , and technology . NIST is in a great position to run the CHIPS for America program because they have strong relationships with U . S . industries , a deep understanding of the semiconductor ecosystem , and a reputation for being fair and trusted . If you want to learn more , check out www . chips . gov . For GlobalFoundries contacts , reach out to Erica McGill at erica . mcgill@gf . com for media relations , Julie Moynehan at julie . moynehan@gf . com for NY community contact , and Gina DeRossi at gina . derossi@gf . com for VT community contact . Don ' t forget to tag CHIPS for America under Bureaus and Offices National Institute of Standards and Technology .
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