Commerce Department Signs Initial Agreement With GlobalFoundries for Semiconductor Supply Chain Resilience

The Department of Commerce has signed a non-binding preliminary memorandum of terms with the New York-based multinational semiconductor contract manufacturing company GlobalFoundries to strengthen the United States’ domestic semiconductor supply chain resilience.

Under the PMT, the department will grant GlobalFoundries approximately $1.5 billion in direct funding under the CHIPS and Science Act to support a new facility, expand the company’s capacity and modernize its manufacturing sites in New York and Vermont, which produce semiconductors for the automotive, communications and defense sectors. GF’s chips are used in Wi-Fi and cellular devices and smartphones and onboard electric and internal combustion engine vehicles, such as blind-spot monitors and collision warning devices.

Apart from the funding, the CHIPS Program Office would make around $1.6 million in loans available to GF.

GF is the only U.S.-headquartered company that provides current and mature foundry capabilities at scale, the National Institute of Standards and Technology said.

The U.S. government has been investing in semiconductor-related projects to enhance technology capabilities.

Earlier in February, the Commerce Department signed the private-public consortium agreement for the National Semiconductor Technology Center, which will oversee over $5 billion in semiconductor research and development investments. In September, the National Science Foundation and its partners allocated $45.6 million to fund 24 semiconductor technologies and manufacturing developments under the foundation’s Future of Semiconductors program.