February 20, 2024 /SemiMedia/ -- The U.S. government said yesterday that it would provide $1.5 billion in subsidies to GlobalFoundries for semiconductor production to strengthen the U.S. semiconductor supply chain.

Under a preliminary agreement with the U.S. Department of Commerce, GF will build a new semiconductor manufacturing facility in Malta, New York, and expand existing operations in Malta and Burlington, Vermont.

"We now need to turn our attention to increasing demand for American-made chips and developing the American semiconductor workforce," GF President and CEO Thomas Caulfield said in a statement.

U.S. Commerce Secretary Raimondo said the new factory in Malta will produce high-value chips that are currently not produced anywhere in the United States. The expansion of the factory will ensure a stable supply of chips for auto suppliers and manufacturers, including General Motors. In addition, Raimondo said that GlobalFoundries’ Burlington revamped factory will be the first factory in the United States capable of mass producing next-generation gallium nitride.

"The chips GF will produce in these new facilities are critical to our national security," Raimondo added.