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Released November 25, 2024 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--GlobalFoundries Incorporated (Malta, New York) recently announced an award of up to $1.5 billion in direct funding through the CHIPS and Science Act for three projects aimed at boosting semiconductor manufacturing.

In a November 20 press release, GlobalFoundries said the funding will enable it "to expand its essential chip manufacturing and technology development in the U.S., strengthening supply chains and supporting customers across a range of vital end-markets including automotive, smart mobile devices, IoT [internet of things], data centers, and aerospace and defense."

The award will support three projects, including two at its semiconductor campus in Malta, New York.

A proposed $11.6 billion expansion will add a 380,000-square-foot fabrication (fab) building next to the operational 950,000-square-foot fab; in partnership with Air Liquide (Paris, France), an expansion of technology at the operational plant includes revamping the existing air separation units (ASU) to install more energy-efficient technology, as well as adding new ASUs. Air Liquide will provide high-purity gases to the units. Industrial Info is tracking the projects with a medium probability (81-99%) of moving forward as planned, with kickoff tentatively expected in mid-2025.

GlobalFoundries said the two projects are expected to triple the existing production capacity at the Malta site over the next 10-plus years, "in alignment with expected market requirements and customer demand. Construction of the new fab will leverage the GF site's existing infrastructure and ecosystem, enabling a fast and efficient path from construction to production."

Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can read detailed project reports on the new fab and the technology expansion.

GlobalFoundries said the third project to receive CHIPS and Science Act funding is at its semiconductor-manufacturing plant in Essex Junction, Vermont, to expand high-volume manufacturing of next-generation gallium nitride (GaN) semiconductors. Subscribers can click here to read more information on the project, which is expected to wrap up in mid-2025.

With their ability to handle high voltages and temperatures, GaN chips are well-positioned to be used in 5G and 6G cellular communications, automotive, as well as power grids, among other end-products.

But the recent CHIPS Act funding is not the first governmental award for the Vermont plant. Last year, it received $35 million in funding under the U.S. Department of Defense's Trusted Access Program Office (TAPO). At that time GlobalFoundries said it planned to use the investment to "purchase additional tools to expand development and prototyping capabilities."

The U.S. Department of Commerce has provisionally awarded much of the CHIPS Act funding. For more information on related projects, see July 22, 2024, article - GlobalWafers' U.S. Semiconductor Wafer Manufacturing Plants Receive Government Funding.

But it remains to be seen if President-elect Donald Trump will claw back CHIPS Act funds, after publicly declaring the legislation as "so bad." As a result, the Biden administration's Commerce Department aims to allocate all of the funds before Trump enters the White House, U.S. Secretary of Commerce Gina Raimondo said in a recent interview with Politico. She said Trump's inauguration date represents "a clear deadline."

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
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