US chipmaker GF has secured $1.5bn in funding for a new state-of-the-art facility at its campus in Malta, New York.
The funding, part of the US CHIPS and Science Act, will enable GF to expand its manufacturing capacity in Malta to produce more chips for automotive, Internet of Things, aerospace, defence and other markets.
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By GlobalDataThe Governor of New York, Kathy Hochul, has announced an additional $575m package for direct funding of New York State Green CHIPS projects. Furthermore, Hochul allocated $15m in funding for NYS Workforce Development activities for GF, as well as $30m in planned funding for NYS Infrastructure upgrades and energy incentives provided by the New York Power Authority.
“These proposed investments, along with the investment tax credit (ITC) for semiconductor manufacturing, are central to the next chapter of the GlobalFoundries story and our industry. They will also play an important role in making the US semiconductor ecosystem more globally competitive and resilient, and cements the New York Capital Region as a global semiconductor hub,” said Dr Thomas Caufield, president and CEO of GF.
“With new onshore capacity and technology on the horizon, as an industry, we now need to turn our attention to increasing the demand for US-made chips and to growing our talented US semiconductor workforce.”
US President Joe Biden signed the CHIPS and Science Act into law in August 2022. The Act authorises $280bn in investment funds for the research, development and manufacturing of semiconductors in the US, bringing production home and decreasing reliance on East Asian countries, which are currently the largest chip manufacturers in the world.
In the week following the adoption of the Act, many US chipmakers announced plans to invest in manufacturing facilities back home rather than expand overseas. Micron, an Idaho-based chipmaker, promised back in August 2022 to invest $40bn in new memory chip manufacturing capabilities in a move that could create up to 40,000 jobs. Similarly, Qualcomm and GF announced a $4.2bn partnership to manufacture chips at GF’s facility in Malta, New York.
“This is yet another shot in the arm for the US economy,” Glenn Barklie, head of FDI Services at GlobalData, said. “Not only will GF receive a multibillion dollar investment that will create thousands of direct and indirect jobs, but it ensures the US will become a bigger player in a key strategic sector.”
According to Barklie, the US Chips and Science Act delivers a steady supply of chips within the US while reducing the risk of supply chain disruptions and reliance on other countries such as China.
“The Act not only brings foreign companies into the US, it encourages US companies to invest domestically, rather than abroad,” he said.
