White House announces $1.5B grant to chipmaker GlobalFoundries

UPI
Vice President Kamala Harris speaks at the Munich Security Conference in Munich, Germany, on Saturday. She announced a $1.5 billion tech grant for GlobalFoundries on Monday. Photo by Ukrainian Presidential Press Office/UPI
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Feb. 19 (UPI) -- A New York computer chipmaker will receive $1.5 billion from the Biden administration to help renew semiconductor manufacturing capacity in the United States, the White House said Monday.

The administration said that not only will GlobalFoundries receive the first grant from the federal CHIPS program, but it also will have an opportunity to access $1.6 million more through a federal loan to spur production over the next 10 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," Vice President Kamala Harris 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 stressed that such tech jobs being created by GlobalFoundries are the type of work opportunities the administration wants to grow for American workers that will produce strong pay in a growing field.

"This investment will also create more than 10,000 good jobs over the next decade, including many union construction jobs that pay fair wages and offer benefits like childcare services," Harris said.

"Additionally, the domestic production of these chips will provide more supply chain stability to the auto and aerospace industries across the United States that currently rely on the shipment of these chips from overseas."

Federal officials said, though, GlobalFoundries will be held accountable for its spending, requiring it to meet periodic milestones throughout construction and production to make sure Americans benefit from the large grant and the loan.