The U.S. government is awarding $1.5 billion to GlobalFoundries (GFS.O) to expand semiconductor production, the Biden administration said on Monday, in a bid to strengthen domestic supply chains.
GlobalFoundries, the world's third-largest contract chipmaker, will build a new semiconductor production facility in Malta, New York, and expand existing operations there and in Burlington, Vermont, according to a preliminary agreement with the Commerce Department.
The grant will be accompanied by $1.6 billion in available loans, with the funding expected to generate $12.5 billion in overall potential investment across the two states.