GF Announces Massive Investment Plan Subsidized by the U.S. Government's CHIPS Act for the First Time
🟦 GLOBALFOUNDRIES plans large-scale investment to strengthen semiconductor supply with cooperation from the U.S. government
GF (Globalfoundries) has received a subsidy of 1.5 billion dollars (about 225 billion yen) from the US government and announced a plan to expand its semiconductor production facility. This is a 10-year, $12 billion investment plan that includes the construction of new plants and the introduction of advanced technologies. This is the first support from the $53 billion CHIPS Act enacted in 2022 by the U.S. government to supply semiconductors to the country. The plan is expected to increase employment and meet the growing demand for U.S. chips.
🟦 Strengthening the long-term U.S. semiconductor supply chain
In order to prepare for the expansion of the semiconductor market and meet the growing demand, GF will ensure its long-term competitiveness and strengthen the supply of semiconductors in the United States. Specifically, we will work to meet demand in a wide range of fields and increase production capacity.
GF’s plans to expand its semiconductor production facilities include:
- Expansion of existing facilities in New York: Expansion of automotive semiconductor production by incorporating manufacturing technologies used at facilities in Germany and Singapore.
- Construction of a new plant in New York: A new plant will be built to support a wide range of sectors, including AI, automotive, aerospace, and defense. The production capacity is expected to triple from the current level.
- Vermont plant renewal: Deploy the tools needed to produce the next generation of GaN (gallium nitride) chips for increasingly used applications in data centers, telecommunications, power grids, and more.
🟦Summary
GF has announced a huge investment plan with the first support from the U.S. government’s “CHIPS Act” to receive subsidies. Investment in a wide range of fields, such as the expansion of semiconductor production for automobiles and the construction of new facilities, is expected to increase employment and expand production capacity.
The subsidy of the METI of Japan, which was affected by the CHIPS Act, is about 1/3 of the total investment. On the other hand, the subsidy of the original CHIPS method is a little more than 10%. In terms of the speed of contributions, Japan seems to be moving more quickly.
