US to invest 1.5 billion dollars in local semiconductor production
The money will be used by GlobalFoundries in NY State to modernize its buildings, develop a new semiconductor production unit, and increase its activities in NY.
As per the preliminary deal revealed by U.S. authorities on Monday, a New York-based business would get $1.5 billion from the U.S. Department of Commerce to produce semiconductors.
The Malta, New York-based GlobalFoundries plans to renovate its facilities in Essex Junction, Vermont, develop a new semiconductor production factory, and grow its business in New York with the help of the financing.
U.S. Vice President Kamala Harris declared in a statement that «semiconductors are the brains of modern technology,» underscoring the government’s dedication to supporting regional employment growth and technical independence.
The so-called CHIPS Act, which was passed in 2022 with the backing of Democrats and Republicans, aims to address China’s reliance on the production of these components, which are necessary for producing everything from washing machines to supercomputers. This has allowed for the preliminary agreement.
Specifically, GlobalFoundries is dedicated to producing chips for vehicle collision warning systems, smartphone charging and securing Wi-Fi connections, among others.
The business emphasized in a statement that the increased funding will support the manufacture of automobiles in the United States.
«As vehicles shift from mechanical to electronic systems, the number of semiconductors in each car or truck continues to grow,» explained the firm, which pointed to General Motors as one of the companies that will benefit most from this investment.
