The Biden Administration will provide $1.5 billion to the computer chip company GlobalFoundries for domestic manufacturing in New York and Vermont. With the 2022 CHIPS and Science Act, the government will invest over $52 billion in computer chips manufacturing in the U.S. and Research and Development (R&D). Moreover, the government will also provide loans of $1.6 billion, bringing the total public and private investment to around $12.5 billion.Hence, this award is direct financial support for a semiconductor company.
Commerce Secretary, Gina Raimondo said, “The chips that GlobalFoundries will make in these new facilities are essential,”, adding “They power sophisticated military equipment, electric vehicles. They assure smartphones have the latest features, enable faster Internet connections for Americans.”
The projects in Malta, New York, and Burlington, Vermont, will create 1,500 manufacturing jobs and 9,000 construction jobs over the next decade. The company will use the award to cover the construction costs of a new advanced plant in Malta, New York, as well as increase manufacturing at the existing Malta plant. In addition, the plant in Burlington, Vermont, will be revitalized.
Furthermore, $10 million will be used for the training of workers, while the company will also extend the annual child care subsidy and child care support to workers.
In an interview with The Associated Press, Senator Chuck Schumer of New York said that “the United States could be vulnerable to disruptions as it was during the coronavirus pandemic when auto plants lacked enough chips to keep making vehicles.”. He also added, “The Democrats are going to do what it takes to see that other countries — China, Russia and others — don’t gain economic advantage over all of us,”
GlobalFoundries is a multinational semiconductor manufacturing company, headquartered in Malta, New York, and founded in 2009.
Image by Alethea Flowers from Pixabay
Article Source: AP News
