Updated 2:21 p.m.
GlobalFoundries announced plans Wednesday to invest $16 billion in its New York and Vermont operations to bolster domestic chip manufacturing.
The company expects to dedicate $13 billion of those funds to modernizing its plants in Malta, New York, where it is based, and Essex Junction. Only about $125 million of that is expected to go toward Vermont operations, according to Gina DeRossi, a spokesperson for the company.
Now, the company plans to commit an additional $3 billion to research and development in the Northeast, the company said in a Wednesday press release.
The company said it was collaborating with President Donald Trump’s administration and leading tech companies, including Apple and General Motors, to help reshore domestic chip production.
“At GlobalFoundries, we are proud to partner with pioneering technology leaders to manufacture their chips in the United States — advancing innovation while strengthening economic and supply chain resiliency,” Tim Breen, CEO of GlobalFoundries, said in the release. “The AI revolution is driving strong, durable demand for GF’s technologies that enable tomorrow’s data centers — including GF’s leading silicon photonics, as well as GaN for power applications.”
The announcement is just the latest sign that bipartisan attempts to bolster domestic semiconductor manufacturing have begun to bear fruit for the company’s Essex Junction facility, which is one of the largest employers in Vermont.
Last February, GlobalFoundries was awarded $1.5 billion in federal funding through the 2022 CHIPS and Science Act, $125 million of which went to the company’s Vermont plant. In December, the company secured nearly $10 million in additional federal funds to bolster operations in Essex Junction.
GlobalFoundries is also a key player in Vermont’s Gallium Nitride Tech Hub, a consortium of entities including the University of Vermont that is dedicated to the development and production of Gallium Nitride semiconductors, a cutting edge chip technology.
Earlier this year, the outgoing Biden Administration awarded the Vermont tech hub nearly $24 million in funding for chip manufacturing, a decision that was revoked by the Trump administration, which said it would re-award the grant money next year.
GlobalFoundries said it plans to allocate part of its $3 billion in research and development funding toward Gallium Nitride production in Vermont, though it did not specify the amount, if any, would go to Vermont operations.
