GlobalFoundries, a leading contract chip manufacturer, has formally submitted funding applications under the U.S. CHIPS (Creating Helpful Incentives to Produce Semiconductors for America) Act. The move aims to propel capacity expansion and modernization of its local manufacturing facilities.
The CHIPS and Science Act allocates a substantial $52.7 billion in subsidies for U.S. semiconductor production, research, and workforce development. Notably, it also encompasses a 25 percent investment tax credit, estimated to be around $24 billion, targeting the construction of chip plants, Reuters news report said.
In a news statement, senior executive Steven Grasso emphasized the significance of federal support, stating, “This federal support is critical for GF (GlobalFoundries) to continue growing its U.S. manufacturing footprint, strengthening U.S. economic security, supply chain resiliency, and national defense.”
Highlighting the keen interest from the industry, the U.S. Commerce Department announced in August that over 460 companies had expressed interest in vying for government semiconductor subsidy funding. The objective is to bolster the nation’s competitiveness in the global arena, particularly against China’s robust science and technology efforts.
GlobalFoundries recently said the U.S. Department of Defense (DoD) has awarded GlobalFoundries a new 10-year contract worth $3.1 billion for supply of securely manufactured, U.S.-made semiconductors for use across a wide range of critical aerospace and defense applications.
GlobalFoundries, headquartered in Malta, New York, specializes in the production of wireless connectivity chips utilized in mobile phones, WiFi routers, and radio towers. Its client base includes prominent U.S. aerospace and defense firms, such as Lockheed Martin. This move aligns with their strategy to further enhance capabilities and contribute to the strengthening of the U.S. semiconductor industry.
