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GlobalFoundries (Vermont)
Key Facts
Project Summary
The U.S. Department of Commerce awarded GlobalFoundries (GF) up to $1.5 billion in direct funding under the CHIPS and Science Act. The award will bolster U.S. competitiveness in current-generation and mature-node (C&M) semiconductor production by supporting the company’s total investment of approximately $13 billion in its U.S manufacturing sites in New York and Vermont, which produce essential automotive, communications, and defense semiconductor technologies. The investment includes a new state-of-the-art facility in New York, the capacity expansion and modernization of an existing facility in New York, and the complete modernization of the company’s operations in Vermont. The projects will create approximately 9,000 construction and 1,000 manufacturing jobs.
Economic and National Security Impact
This investment in GF will advance U.S. economic and national security by increasing domestic capacity, strengthening supply chain resilience, and for the onshoring new technologies in the U.S. that are important to the U.S. defense and intelligence communities. GF’s manufacturing sites in New York and Vermont produce essential automotive, communications, defense, and other semiconductor technologies.
The $1.5 billion in direct funding will be split across GF’s three projects:
Malta, New York – New State-of-the-Art 300mm Fab: The construction of a new, large-scale 300mm fabrication facility that is expected to produce high value technologies not currently available in the United States. 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 expansion of GF’s existing Malta, New York, fabrication facility to secure a dedicated supply of essential semiconductor technologies.
Burlington, Vermont – Fab Revitalization: The revitalization of an existing fabrication facility in Burlington, Vermont, to commercialize new 200-mm technologies, including Gallium Nitride on Silicon. The revitalization would create 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.
Currently, there are only four companies outside of China that provide current and mature foundry capabilities at the scale of GF – and GF is the only one of those companies that is headquartered in the United States. Shortages of some of these semiconductors caused major disruptions during the COVID-19 pandemic, resulting in a particularly acute impact on the availability and price of a broad range of goods for Americans, as well as the shutdown of automobile manufacturing sites.
Financial and Commercial Terms
As stated in the CHIPS Notice of Funding Opportunity (NOFO) for Commercial Fabrication Facilities, the CHIPS Program Office (CPO) will disburse direct funding to GlobalFoundries for capital expenditures for the project based on the completion of construction, production, and commercial milestones. CPO will track the performance of each CHIPS Incentives Award via financial and programmatic reports, in accordance with the award terms and conditions. All CHIPS funding recipients are required to adhere to restrictions pursuant to the CHIPS Act and the NOFO regarding stock buybacks and National Security Guardrails. The Department and GF have agreed to certain conditions on buybacks for a period of 5 years.
Workforce, Community, and Environmental Commitments
As part of our commitment to transparency, for information on the local and community impact of this project, please download our Community Impact Report.
GlobalFoundries Project Overview | ||
|---|---|---|
Project Summary | Recipient | GlobalFoundries |
| Location(s) | Malta, New York Burlington, Vermont | |
Financial Summary | Program | CHIPS Program Office |
| Direct Funding Amount | $1.5 billion | |
| Expected Capital Expenditure | $13 billion | |
Workforce Summary | Estimated Job Creation | 1,000 manufacturing jobs and 9,000 construction jobs |
| CHIPS Workforce Funding | $12 million | |
Project Statistics: Burlington, Vermont | ||
|---|---|---|
Summary | Project Type | Fab revitalization |
| Technology | Gallium Nitride for communication / mobile / EV and Silicon Germanium for communications infrastructure | |
| Estimated Job Creation | 1,000 construction jobs | |
| Direct Funding | $125 million | |
Related Links
- Biden-Harris Administration Announces CHIPS Incentives Award with GlobalFoundries to Strengthen Essential Chip Supply for Key U.S. Industries Including Auto and Defense
- Biden-Harris Administration Announces Preliminary Terms with GlobalFoundries to Strengthen Domestic Legacy Chip Supply for U.S. Auto and Defense Industries
- GlobalFoundries Community Impact Report
- Fact Sheet: CHIPS Program Office Approach to Applicant Capital Allocation Policies
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