From the Associated Press, February 19:
The Biden administration said Monday that the government intends to provide $1.5 billion to the computer chip company GlobalFoundries to expand its domestic production in New York and Vermont.
The announcement is the third award of direct financial support for a semiconductor company under the 2022 CHIPS and Science Act. The law enables the government to invest more than $52 billion to revitalize the manufacturing of computer chips in the United States as well as advance research and development.
“The chips that GlobalFoundries will make in these new facilities are essential,” Commerce Secretary Gina Raimondo said on a call with reporters. “They power sophisticated military equipment, electric vehicles. They assure smartphones have the latest features, enable faster Internet connections for Americans.”
In addition to the direct funding, the government would also provide loans worth up to $1.6 billion, with a total combination of public and private investment expected to equal roughly $12.5 billion.
GlobalFoundries intends to use the funding to help pay for the construction of a new advanced chip factory in Malta, New York, increase production at its existing plant in Malta as part of a strategic agreement with General Motors, and revitalize its plant in Burlington, Vermont.
The projects are expected to create 1,500 manufacturing jobs and 9,000 construction jobs over the next decade. As part of the terms of the deal, $10 million would be dedicated to training workers and GlobalFoundries will extend its existing $1,000 annual subsidy for child care and child care support services to construction workers....
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GFS reported earnings last week. The Barron's headline was:
GlobalFoundries Stock Slips as Guidance Disappoints Amid Chip Glut
