The funding follows the previously signed preliminary memorandum of terms announced in February 2024 and will enable GF to expand its essential chip manufacturing and technology development in the US, helping to strengthen supply chains and support customers across a range of vital end-markets including automotive, smart mobile devices, IoT, datacentres, and aerospace and defence.
“The idea of strengthening US semiconductor manufacturing has been five-plus years in the making. With bipartisan support, that idea evolved into the CHIPS and Science Act,” said Dr. Thomas Caulfield, president and CEO of GF. “GF’s essential chips are at the core of US economic, supply chain and national security.”
GF’s CHIPS and Science Act award will support three projects:
Expansion of GF’s existing Malta, New York, fab by adding critical technologies already in production at GF’s Singapore and Germany facilities, to enable a secure and reliable supply of domestically manufactured essential chips for the US auto industry.
Modernisation and upgrading of GF’s existing fab in Essex Junction, Vermont, to expand production capacity and create one of the world’s leading facilities capable of high-volume manufacturing of next-generation gallium nitride (GaN) semiconductors for use in electric vehicles, data centres, IoT, smartphones and other critical applications.
In alignment with market conditions and customer demand, construction of a new state-of-art fab on GF’s Malta, New York, campus to meet expected demand for US-made essential chips across a broad range of markets and applications including automotive, AI in the data centre and at the edge, as well as aerospace and defence.
The two New York-based projects are expected to triple the existing capacity of GF’s Malta campus over the next 10-plus years, in alignment with expected market requirements and customer demand.
Construction of the new fab will leverage the GF site’s existing infrastructure and ecosystem, enabling a fast and efficient path from construction to production.
In aggregate, these projects represent more than $13 billion of investment over the next 10-plus years across GF’s two US sites. This investment includes the $1.5 billion CHIPS and Science Act award, more than $550 million in support from the New York State Green CHIPS Program, as well as funding and support from Vermont, GF ecosystem partners and key strategic customers, and other incentives.
Combined, these investments are expected to create close to 1,000 direct manufacturing jobs and more than 9,000 construction jobs over the life of these projects.
GF’s fabs in New York and Vermont are both Trusted Foundry accredited and manufacture secure chips in partnership with the US government.
As part of its award, to attract and cultivate a pipeline of semiconductor talent in New York and Vermont, GF will continue to invest in and develop new workforce development efforts including curriculum development, internship and apprenticeship programs, K-12 STEM outreach, as well as additional education and training programs.
