Aiexpress – The Biden administration will give a New York computer chipmaker $1.5 billion to help rejuvenate semiconductor production capacity in the United States, the White House announced on Monday.
The administration stated that GlobalFoundries will not only get the first award from the federal CHIPS program but will also have the potential to access an additional $1.6 million through a federal loan to boost output over the next ten years.
“The preliminary agreement announced today will allow GlobalFoundries to create a new state-of-the-art semiconductor production facility in Malta, N.Y., and will allow the company to expand existing operations in both New York and Vermont,” the vice president said in a statement.
“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 emphasized that the tech jobs being generated by GlobalFoundries align with the administration’s goal of expanding work opportunities for American workers. These positions offer competitive salaries in a thriving industry.
“This investment will not only generate over 10,000 high-quality jobs in the next ten years, but it will also provide numerous opportunities for union construction workers who will receive fair wages and benefits like childcare services,” stated Harris.
Moreover, producing these chips domestically will bring greater stability to the supply chains of the auto and aerospace industries in the United States. Currently, these industries depend on importing these chips from abroad.
Federal officials have emphasized that GlobalFoundries will be held accountable for its spending. They will require the company to meet periodic milestones throughout the construction and production process. This will ensure that Americans derive maximum benefits from the large grant and loan provided to GlobalFoundries.
