Government Funds Chip Company Expansion in New York and Vermont
**WASHINGTON** – In a move to bolster domestic semiconductor production, the Biden administration announced on Monday a $1.5 billion investment in GlobalFoundries. The funding aims to support the expansion of chip manufacturing facilities in New York and Vermont, marking the third direct financial assistance to a semiconductor company under the 2022 CHIPS and Science Act.
**Support for Essential Chip Production**
Commerce Secretary Gina Raimondo emphasized the significance of the investment, highlighting the essential role of chips in powering military equipment, electric vehicles, smartphones, and improving internet connectivity for Americans.
**Massive Investment for Revitalization**
In addition to the $1.5 billion funding, the government plans to offer loans of up to $1.6 billion. The total public and private investment is anticipated to reach around $12.5 billion. GlobalFoundries intends to utilize the funds for constructing a new advanced chip factory in Malta, New York, expanding production at existing facilities, and revitalizing the plant in Burlington, Vermont.
**Economic Boost and Job Creation**
The projects are projected to generate 1,500 manufacturing jobs and 9,000 construction jobs over the next decade. Furthermore, a dedicated $10 million will be allocated for worker training, with extended childcare benefits for employees.
**Bipartisan Support for Long-Term Growth**
Senate Majority Leader Chuck Schumer, a key proponent of the semiconductor funding law, emphasized the importance of investing in chip production to safeguard the U.S. economy and national security. Schumer underscored the bipartisan nature of the investments, emphasizing their potential to secure the country’s future prosperity.
**Focusing on Economic Stability**
With economic concerns at the forefront, both Democrats and Republicans have highlighted the importance of addressing inflation and making long-term investments. The funding for chip production symbolizes a broader strategy to drive economic growth and ensure the nation’s competitive edge in the global market.