GlobalFoundries receives federal funding to expand and create new manufacturing fab in Malta

MALTA, N.Y. — GlobalFoundries is set to receive $1.5 billion in planned direct funding as part of the U.S. CHIPS and Science Act, the U.S. Department of Commerce announced Monday morning.

Officials said this investment will enable GF to expand and create new manufacturing capacity and capabilities to securely produce more essential chips for automotive, IoT, aerospace, defense, and other vital markets.

New York-headquartered GF, celebrating its 15th year of operations, is the only U.S.-based pure-play foundry with a global manufacturing footprint including facilities in the U.S., Europe, and Singapore. GF is the first semiconductor pure-play foundry to receive a major award (over $1.5 billion) from the CHIPS and Science Act, designed to strengthen American semiconductor manufacturing, supply chains, and national security.

The proposed funding will support three GF projects:

“Expansion of GF’s existing Malta, NY, fab by adding critical technologies already in production in GF’s Singapore and Germany facilities geared towards enabling the U.S. auto industry. As vehicles transition from mechanical to electronic systems, the number of semiconductor chips in each car or truck continues to soar. This expansion is key to ensuring supply chain resilience for the growing demand and to delivering for GF’s automotive customers including General Motors. This will continue to diversify GF’s flagship Malta fab into new technologies and end markets.

“Construction of a new state-of-the-art fab on the Malta campus to meet expected customer demand for U.S.-made essential chips across a broad range of markets and applications including automotive, aerospace, defense, and AI. The new fab, which has already been granted some necessary permitting, will leverage the site’s existing infrastructure and ecosystem, enabling a fast and efficient path from construction to production. The semiconductor market is expected to double over the next decade, and GF’s new fab will be uniquely positioned to capture the feature-rich mature, essential chip segment which is expected to continue to represent more than 60% of the semiconductor market. Construction of this new fab combined with the expansion of GF’s existing site is expected to triple the existing capacity of the Malta campus over the next 10+ years. These two projects are expected to increase wafer production to 1 million per year once all phases are complete.

“Modernization of GF’s longest continuously operated fab and the nation’s first and largest Trusted 200mm facility in Essex Junction, Vermont. The project will upgrade existing facilities, expand capacity as well as create the first U.S. facility capable of high-volume manufacturing of next-generation gallium nitride (GaN) semiconductors for use in electric vehicles, power grids, data centers, 5G and 6G smartphones, and other critical technologies.’

Based on market requirements and demand, GF plans to invest more than $12 billion over the next 10-plus years across its two U.S. sites through public-private partnerships with support from the federal and state governments as well as from its ecosystem partners, including key strategic customers.

“Semiconductors are in everything from our cellphones to refrigerators, to cars, and our most advanced weapons systems and access to them carries important economic and national security implications. It was the shortages of semiconductors during the COVID-19 pandemic that raised prices for consumers and led to the shutdown of automobile manufacturing sites across the country,” Secretary of Commerce Gina Raimondo said in a news release from GF. “Thanks to the CHIPS and Science Act, we’re working to onshore these critical technologies in order to bolster the supply of domestic chips that are essential to manufacturing cars, electronics, and national defense systems in New York, Vermont, and states across the country.”

In support of the two Malta projects, Gov. Kathy Hochul on Monday also announced $575 million in planned direct funding for New York State Green CHIPS. Also announced was $15 million in planned funding for NYS Workforce Development activities for GlobalFoundries as well as $30 million in planned funding for NYS Infrastructure upgrades and Energy incentives provided by the New York Power Authority (NYPA).

Combined, these investments are expected to create over 1,500 manufacturing jobs and about 9,000 construction jobs over the life of these projects, officials noted.

“GF is proud to announce this proposed funding from the Department of Commerce and New York State and appreciates the collaboration of the CHIPS Office and the Empire State Development Corporation throughout this process. 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 U.S. semiconductor ecosystem more globally competitive and resilient and cements the New York Capital Region as a global semiconductor hub,” President and CEO of GF Dr. Thomas Caulfield said in the release. “With new onshore capacity and technology on the horizon, as an industry, we now need to turn our attention to increasing the demand for U.S.-made chips, and to growing our talented U.S. semiconductor workforce.”

“I have long said my CHIPS & Science Law would deliver big for New York, and I meant big with a capital ‘B.’ I am proud to announce GlobalFoundries has reached a preliminary agreement for the largest award thus far from the CHIPS program I created for $1.5 billion in grant funding,” U.S. Senate Majority Leader Charles Schumer, D-NY, said in the release. “This will triple (the) production capacity of GlobalFoundries’ already massive campus in Saratoga County, spur billions in public-private investment, and help bring thousands of new good-paying manufacturing and union construction jobs to the Capital Region.

“When I wrote the CHIPS & Science Law, I made sure there was funding, especially for the feature-rich, legacy chips that GlobalFoundries produces in Malta and that are essential for America’s auto industry and national defense. We all remember the days of the pandemic when chip shortages skyrocketed car prices and created supply chain issues leading to months-long wait times for cars and electronics, and investments like this are how we can help prevent that from happening again. Ever since GlobalFoundries’ first Fab 8 broke ground 15 years ago, I knew how significant the company would be for the Capital Region and upstate NY. Today, the plans for their second chip facility and thousands of new good-paying jobs move forward thanks to the CHIPS & Science Law I fought hard to create.”

“New York State is becoming the best place on earth to build a business,” Hochul said in the release. “Thanks to our pro-business policies, commitment to innovation and best-in-the-nation workforce, green jobs and high-tech manufacturers are flocking to the Empire State. This $11 billion investment from GlobalFoundries is a game changer, and with the partnership of the Biden administration, New York’s congressional delegation, and all of our local stakeholders, the best is yet to come.”

“Today’s announcement is nothing short of a game-changer for Saratoga County and the greater Capital Region. It is proof positive that our Investing in America agenda not only bolsters national security and global economic competitiveness, it can create thousands of good paying jobs right here at home. I look forward to working closely with GlobalFoundries and local, state, and federal partners to make these historic plans a reality,” U.S. Paul Tonko, D-NY, added.

Saratoga County Board of Supervisors Chairman Phil Barrett also issued a statement regarding the $3 billion CHIPS funding to aid in the expansion of Global Foundries operations in Saratoga County.

“We congratulate GlobalFoundries on their future expansion plans here in Saratoga County and wish the company continued success. Saratoga County will remain the home for innovation and technological advancement. Strengthening the chip industry in America due to geopolitical considerations has never been more important,” he said.

Local chamber of commerce officials were also thrilled to hear the Monday morning news.

“Today’s announcement further solidifies the Capital Region’s position as a global leader in semiconductor manufacturing. During the next decade, the two Malta projects are expected to create 1,500 new manufacturing jobs,” said Mark Eagan, CEO and president of the Center for Economic Growth and the Capital Region Chamber. “The awards have a targeted focus on workforce development, which ensures that the people who live in our region will be trained and connected to good-paying careers in manufacturing.

“Our fully enabled ecosystem has skilled talent, workforce development programs, research universities, private sector R&D, supply chain, along with the infrastructure necessary for companies to locate and grow here. This announcement marks an exciting chapter in our region’s future; one that builds on an already strong foundation to propel us further into global leadership.”

“This was tremendous news on a glorious Monday morning in Saratoga County. In 2010 when Globalfoundries was constructing Fab 8, the expectation was for a $3 billion investment that would create 1,200 jobs, and they’ve exceeded both goals creating 3,000 jobs and investing $15 billion in the last 14 years. This growth propelled our local economy out of the Great Recession and this latest investment will hopefully help us to sustain the economic success Saratoga County has experienced for years to come,” Saratoga County Chamber of Commerce President Todd Shimkus added.

GlobalFoundries also recently announced a new student loan repayment program to help current employees and new recruits pay down student loan debt.

The new benefit program is part of the company’s multi-million-dollar investment to strengthen the semiconductor talent workforce by helping to ease the financial burden of higher education and training of the company’s present and future employees. GF is also partnering with a broad range of universities and community colleges nationwide to help build a diverse workforce and semiconductor talent pipeline.

As part of receiving CHIPS and Science Act funding, GF will continue to invest in and develop new workforce development efforts including curriculum development, internship and apprenticeship programs, K-12 STEM outreach as well as additional education and training programs.

All of GF’s design and construction plans for its expansions and modernizations in New York and Vermont will reflect GF’s ongoing commitment to sustainable operations and comply with the company’s sustainability goals.

“We extend our congratulations to GlobalFoundries for achieving this important milestone that will ignite regional economic growth while reinforcing the vital collaboration between Hudson Valley Community College and GF. Since 2021, through a first-of-its-kind U.S. Registered Apprenticeship program, HVCC has been assisting GF in expanding its technical workforce by providing top-notch education and training to apprentices. Additional funding from CHIPS will enable us to expand our role as a critical partner in developing a highly skilled workforce for the semiconductor industry through our partnership with GlobalFoundries,” Hudson Valley Community College President Dr. Roger Ramsammy said in the release.

“We congratulate GlobalFoundries on this crucial milestone. Federal investment in GF’s New York manufacturing capabilities will spur regional economic development and build upon the company’s longstanding and highly positive impact on the Capital region, and its investments here. This funding will further strengthen the vital partnership between SUNY and GF, allowing more SUNY students to gain experiential learning through apprenticeships and internships, and making New York the national model for education and workforce development in the semiconductor industry,” State University of New York Chancellor John B. King, Jr. added.