The US government finalizes a $1.5 billion CHIPS Act subsidy to GlobalFoundries to support the latter's expansion of production capacity in the US

On November 21, the U.S. Department of Commerce officially announced yesterday that it will provide GlobalFoundries with a total of US$1.5 billion (currently approximately RMB 10.871 billion) in direct funds under the CHIPS Act. The specific subsidy issuance will depend on the specific circumstances of GlobalFoundries' completion of project milestones.

This subsidy will support GlobalFoundries' capacity expansion plan of investing a total of US$13 billion (currently approximately RMB 94.219 billion) in the United States over the next decade. The expansion plan will create a total of approximately 1,000 manufacturing jobs and 9,000 construction jobs.

GlobalFoundries plans to build a new large 12-inch wafer fab in Malta, New York, to supplement the United States with high-value technologies that are currently unavailable, and expand an existing manufacturing plant in Malta, New York, to increase automotive semiconductor production capacity. The two projects received a total of $1.375 billion in subsidies.

Another $125 million in subsidies is for GlobalFoundries' revitalization plan for its existing wafer fab in Burlington, Vermont, where it will commercialize 8-inch silicon-based gallium nitride manufacturing technology and build the first large-scale mass production facility of its kind in the United States to support technological development in key areas such as electric vehicles, power grids, and 5G and 6G smartphones.