BIDEN ADMIN PROVIDING $1.5 BILLION TO GLOBALFOUNDRIES TO MAKE COMPUTER CHIPS IN NEW YORK AND VERMONT

The Biden administration said Monday that the government intends to provide $1.5 billion to the computer chip company GlobalFoundries to expand its domestic production in New York and Vermont.

The announcement is the third award of direct financial support for a semiconductor company under the 2022 CHIPS and Science Act. The law enables the government to invest more than $52 billion to revitalize the manufacturing of computer chips in the United States as well as advance research and development.

“The chips that GlobalFoundries will make in these new facilities are essential,” Commerce Secretary Gina Raimondo said on a call with reporters. “They power sophisticated military equipment, electric vehicles. They assure smartphones have the latest features, enable faster Internet connections for Americans.”

In addition to the direct funding, the government would also provide loans worth up to $1.6 billion, with a total combination of public and private investment expected to equal roughly $12.5 billion.