US grants $1.5 bn to GlobalFoundries to boost domestic chip production, create jobs
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
In a bid to push chip manufacturing, US Vice President Kamala Harris on Monday announced to grant $1.5 billion to semiconductor company GlobalFoundries to expand domestic production, strengthen US supply chains, and create “thousands of good paying jobs right here in America”.
In a White House statement, the Joe Biden administration announced that GlobalFoundries has been awarded funding via the $52 billion CHIPS and Science Act.
“Semiconductors are the brain of modern technology. While they are no larger than a fingernail and no thicker than a piece of paper, they are essential to every electronic device that we currently use – from computers and televisions to cars and washing machines,” said Harris.
The preliminary agreement with GlobalFoundries will allow them to create a new state-of-the-art semiconductor production facility in Malta, New York, and will allow the company to expand existing operations in both New York and Vermont.
“The chips made by GlobalFoundries are critical for the development and manufacturing of vehicles and smartphones, and are used for satellite and space communications that are essential to our national defense and national security,” Harris added.
The investment is likely to create more than 10,000 good jobs over the next decade, including many union construction jobs that pay fair wages and offer benefits like child care services.
“Additionally, the domestic production of these chips will provide more supply chain stability to the auto and aerospace industries across the US that currently rely on the shipment of these chips from overseas,” the US Vice President noted.
