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Biden-Harris Administration Announces CHIPS Incentives Award with GlobalFoundries to Strengthen Essential Chip Supply for Key U.S. Industries Including Auto and Defense | U.S. Department of Commerce

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data-dialog-type="modal"><i alt="Thumbs up icon to indicate helpful" class="fas fa-thumbs-up"></i>&nbsp;&nbsp;Helpful&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</button><button type="submit" href="/voting/modal/6988/false" class="usa-button-secondary use-ajax" data-dialog-type="modal"><i alt="Thumbs down icon to indicate not helpful" class="fas fa-thumbs-down"></i>&nbsp;&nbsp;Not helpful</button> </div> <div class="block block-core block-page-title-block"> <h1 class="uswds-page-title page-title"><span class="field field--name-title field--type-string field--label-hidden">Biden-Harris Administration Announces CHIPS Incentives Award with GlobalFoundries to Strengthen Essential Chip Supply for Key U.S. Industries Including Auto and Defense</span> </h1> </div> <div id="block-social-sharing-block" class="block block-social-media block-social-sharing-block"> <div class="social-media-sharing"> <ul class=""> <li> <a target="_blank" class="facebook-share share" href="http://www.facebook.com/share.php?u=https://www.commerce.gov/news/press-releases/2024/11/biden-harris-administration-announces-chips-incentives-award&amp;title=Biden-Harris Administration Announces CHIPS Incentives Award with GlobalFoundries to Strengthen Essential Chip Supply for Key U.S. Industries Including Auto and Defense" title="Facebook"> <img alt="Facebook" src="https://www.commerce.gov//themes/custom/commerce/images/commerce/facebook.svg"> </a> </li> <li> <a target="_blank" class="linkedin share" href="http://www.linkedin.com/shareArticle?mini=true&amp;url=https://www.commerce.gov/news/press-releases/2024/11/biden-harris-administration-announces-chips-incentives-award&amp;title=Biden-Harris Administration Announces CHIPS Incentives Award with GlobalFoundries to Strengthen Essential Chip Supply for Key U.S. Industries Including Auto and Defense&amp;source=https://www.commerce.gov/news/press-releases/2024/11/biden-harris-administration-announces-chips-incentives-award" 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href="/cdn-cgi/l/email-protection#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" title="Email"> <img alt="Email" src="https://www.commerce.gov//themes/custom/commerce/images/commerce/mail.svg"> </a> </li> </ul> </div> </div> <div id="block-commerce-content" class="block block-system block-system-main-block"> <article data-history-node-id="6988" role="article" about="/news/press-releases/2024/11/biden-harris-administration-announces-chips-incentives-award"> <div> <div class="field field--name-field-issues field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><a href="/issues/manufacturing" hreflang="en">Manufacturing</a></div> <div class="field__item"><a href="/issues/semiconductor-industry" hreflang="en">Semiconductor Industry</a></div> </div> <release-infobox > <div class="field field--name-field-release-status field--type-list-string field--label-hidden field__item">FOR IMMEDIATE RELEASE</div> <div class="field field--name-field-release-datetime field--type-datetime field--label-hidden field__item"><time datetime="2024-11-20T14:03:51Z" class="datetime">Wednesday, November 20, 2024</time> </div> <div class="field field--name-field-news-media-contact field--type-entity-reference field--label-hidden field__items"> <div class="field__item"><div about="/bureaus-and-offices/os/public-affairs" id="taxonomy-term-27" class="taxonomy-term vocabulary-bureaus-offices"> <h2><a href="/bureaus-and-offices/os/public-affairs"> <div class="field field--name-name field--type-string field--label-hidden field__item">Office of Public Affairs</div> </a></h2> <div class="content"> <div > <div class="field field--name-field-email field--type-email field--label-hidden field__item"><a href="/cdn-cgi/l/email-protection#58282d3a34313b393e3e39312a2b183c373b763f372e" rel="noreferrer"><span class="__cf_email__" data-cfemail="2f5f5a4d43464c4e49494e465d5c6f4b404c01484059">[email&#160;protected]</span></a></div> </div> </div> </div> </div> </div> </release-infobox> <div class="clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item"><p><em>CHIPS Investment of Up to $1.5 Billion Will Support Multiple Projects in New York and Vermont and Create Approximately 10,000 Good Construction and Manufacturing Jobs</em></p> <p>Today, the Biden-Harris Administration announced that the U.S. Department of Commerce awarded GlobalFoundries (GF) up to $1.5 billion in direct funding under the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication Facilities. The award comes after the previously signed preliminary memorandum of terms, announced on February 19, 2024, and the completion of the Department’s due diligence. The award will bolster U.S. competitiveness in current-generation semiconductor production by supporting the company’s investment of approximately $13 billion over the next 10-plus years in its U.S manufacturing sites in New York and Vermont, which produce essential automotive, smart mobile, aerospace and defense, and communications semiconductor technologies. The Department will disburse the funds based on GF’s completion of project milestones.</p> <p>“By investing in GF’s domestic manufacturing capabilities, we are helping to secure a stable domestic supply of chips that are found in everything from home electronics to advanced weapons systems,” said <strong>U.S. Secretary of Commerce Gina Raimondo</strong>. “Thanks to President Biden’s leadership and because of CHIPS for America, we are strategically strengthening every part of the semiconductor supply chain to ensure we meet our national security objectives and have the ability to out-compete and out-innovate the rest of the world.”  </p> <p>“After we saw semiconductor supply chain disruptions during the pandemic creating a shortage of everything from cars to washing machines, President Biden got to work passing the CHIPS and Science Act to bring semiconductor manufacturing back to America,” said <strong>White House Deputy Chief of Staff Natalie Quillian</strong>. “Today's award is a testament to how the Biden-Harris Administration continues to drive an American manufacturing renaissance, strengthen our supply chains, and create thousands of good-paying jobs in New York, Vermont, and communities across the country.”</p> <p>Currently, there are only four companies outside of China that provide current and mature foundry capabilities at the scale of GF, and GF is the only one of those companies that is headquartered in the United States. Shortages of these semiconductors caused major disruptions during the COVID-19 pandemic, resulting in a particularly acute impact on the availability and price of a broad range of goods for Americans, as well as the shutdown of automobile manufacturing sites. The Department's investment in GF will help advance U.S. economic and national security by increasing domestic manufacturing capacity, strengthening supply chain resilience, and onshoring technologies for the first time that are important to the U.S. defense and intelligence communities. The investment includes a new state-of-the-art facility in New York, the capacity expansion and modernization of an existing facility in New York, and the modernization of the company’s operations in Vermont. The investment is estimated to create approximately 9,000 construction and 1,000 manufacturing jobs across both sites, while supporting the work of the Upstate New York Investing in America Workforce Hub, which is helping ensure New Yorkers are trained for good-paying jobs up and down the semiconductor supply chain.</p> <p>For more information about the GF award, please visit the CHIPS for America website <a href="https://www.nist.gov/chips/globalfoundries-new-york-malta" rel="noreferrer">here</a> and <a href="https://www.nist.gov/chips/globalfoundries-vermont-burlington" rel="noreferrer">here</a>.</p> <p>“The idea of strengthening U.S. semiconductor manufacturing has been five-plus years in the making. With bipartisan support, that idea evolved into the CHIPS and Science Act,” said <strong>Dr. Thomas Caulfield, president and CEO of GF</strong>. “GF's essential chips are at the core of U.S. economic, supply chain and national security. We greatly appreciate the support and funding from both the U.S. Government and the states of New York and Vermont, which we will use to ensure our customers have the American-made chips they need to succeed and win.”</p> <p>As stated in the <a href="https://www.nist.gov/system/files/documents/2024/04/19/Amended%20CHIPS-Commercial%20Fabrication%20Facilities%20NOFO%20Amendment.pdf" rel="noreferrer">CHIPS Notice of Funding Opportunity for Commercial Fabrication Facilities,</a> CHIPS for America will distribute direct funding to recipients for capital expenditures based on the completion of construction, production, and commercial milestones. The program will track the performance of each CHIPS Incentives Award via financial and programmatic reports, in accordance with the award terms and conditions.</p> <p><strong>About CHIPS for America</strong></p> <p>CHIPS for America has awarded over $10 billion of the over $36 billion in proposed incentives funding allocated to date. These announcements across 20 states are expected to create over 125,000 jobs. Since the beginning of the Biden-Harris Administration, semiconductor and electronics companies have announced over $450 billion in private investments, catalyzed in large part by public investment. CHIPS for America is part of President Biden and Vice President Harris’s economic plan to invest in America, stimulate private sector investment, create good-paying jobs, make more in the United States, and revitalize communities left behind. CHIPS for America includes the CHIPS Program Office, responsible for manufacturing incentives, and the CHIPS Research and Development Office, responsible for R&amp;D programs, that both sit within the National Institute of Standards and Technology (NIST) at the Department of Commerce. Visit <a href="https://www.nist.gov/chips" rel="noreferrer">chips.gov</a> to learn more.  </p></div> <div class="field field--name-field-bureaus-offices field--type-entity-reference field--label-above"> <div class="field__label">Bureaus and Offices</div> <div class="field__items"> <div class="field__item"><a href="/bureaus-and-offices/nist" hreflang="en">National Institute of Standards and Technology</a></div> </div> </div> <div class="field field--name-field-leadership field--type-entity-reference field--label-above"> <div class="field__label">Leadership</div> <div class="field__items"> <div class="field__item"><a href="/about/leadership/gina-m-raimondo" hreflang="en">Gina M. Raimondo </a></div> </div> </div> <div class="field field--name-field-tags field--type-entity-reference field--label-above"> <div class="field__label">Tags</div> <div class="field__items"> <div class="field__item"><a href="/tags/secretary-gina-raimondo" hreflang="en">Secretary Gina Raimondo</a></div> <div class="field__item"><a href="/tags/chips-america" hreflang="en">CHIPS for America</a></div> <div class="field__item"><a href="/tags/national-security" hreflang="en">National Security</a></div> </div> </div> </div> </article> </div> </div> </div> </div> </div> </main> <footer class="usa-footer usa-footer--big" role="contentinfo"> <div class="usa-grid usa-footer-return-to-top"> <a href="#">Return to top</a> </div> <div class="usa-footer__primary-section"> <div class="grid-container"> <div class="region region-footer-menu"> <div class="grid-row grid-gap"> <div class="mobile-lg:grid-col-6 desktop:grid-col-4"> <section class="usa-footer__primary-content usa-footer__primary-content--collapsible"> <h4 class="usa-footer__primary-link">Explore</h4> <ul class="usa-list usa-list--unstyled add-list-reset"> <li class="usa-footer__secondary-link"> <a href="/issues" title="Issues" data-drupal-link-system-path="issues">Issues</a> </li> <li class="usa-footer__secondary-link"> <a href="/news" title="News" data-drupal-link-system-path="news">News</a> </li> <li class="usa-footer__secondary-link"> <a href="/data-and-reports" title="Data and reports" data-drupal-link-system-path="node/555">Data and reports</a> </li> <li class="usa-footer__secondary-link"> <a href="/work-with-us" title="Work with us" data-drupal-link-system-path="node/556">Work with us</a> </li> </ul> </section> </div> <div class="mobile-lg:grid-col-6 desktop:grid-col-4"> <section class="usa-footer__primary-content usa-footer__primary-content--collapsible"> <h4 class="usa-footer__primary-link">About us</h4> <ul class="usa-list usa-list--unstyled add-list-reset"> <li class="usa-footer__secondary-link"> <a href="/about" data-drupal-link-system-path="node/477">Our mission</a> </li> <li class="usa-footer__secondary-link"> <a href="/about/strategic-plan" title="Department of Commerce&#039;s strategic plan" data-drupal-link-system-path="node/548">Strategic plan</a> </li> <li class="usa-footer__secondary-link"> <a href="/bureaus-and-offices" title="Department of Commerce&#039;s bureaus and offices" data-drupal-link-system-path="bureaus-and-offices">Bureaus and offices</a> </li> <li class="usa-footer__secondary-link"> <a href="/opog/privacy/privacy-laws-policies-and-guidance" title="Department of Commerce&#039;s privacy program" data-drupal-link-system-path="node/4666">Privacy program</a> </li> </ul> </section> </div> <div class="mobile-lg:grid-col-6 desktop:grid-col-4"> <section class="usa-footer__primary-content usa-footer__primary-content--collapsible"> <h4 class="usa-footer__primary-link">Get in touch</h4> <ul class="usa-list usa-list--unstyled add-list-reset"> <li class="usa-footer__secondary-link"> <a href="/about/contact-us" data-drupal-link-system-path="node/483">Contact us</a> </li> <li class="usa-footer__secondary-link"> <a href="/opog/open-government/open-government-plan" title="Open government" data-drupal-link-system-path="node/4646">Open government</a> </li> <li class="usa-footer__secondary-link"> <a href="/opog/foia/foia-requests" title="Freedom of Information Act" data-drupal-link-system-path="node/6456">FOIA</a> </li> </ul> </section> </div> </div> </div> </div> </div> </div> <div class="usa-footer__secondary-section"> <div class="grid-container"> <div class="grid-row grid-gap"> <div class="usa-footer__logo grid-row mobile-lg:grid-col-6 mobile-lg:grid-gap-2"> <div class="mobile-lg:grid-col-auto"> <a href="/"> <img class="usa-footer__logo-img" src="/themes/custom/commerce/assets/img/doc_logo.png" width="80" height="80" alt="Department of Commerce logo"/> </a> </div> <div class="mobile-lg:grid-col-auto"> <div class="footer-address"> 1401 Constitution Ave NW<br/> Washington, DC 20230 </div> </div> </div> <div class="usa-footer__contact-links mobile-lg:grid-col-6"> <div class="usa-footer__social-links grid-row"> <a href="https://twitter.com/commercegov" aria-label="U. 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