Expanding Domestic Production to Boost Economy and National Security
WASHINGTON – In a move to strengthen the country’s economy and national security, the Biden administration revealed plans on Monday to allocate $1.5 billion to GlobalFoundries, a leading computer chip company. This investment aims to bolster domestic production in New York and Vermont, marking the third award of direct financial aid to a semiconductor company under the 2022 CHIPS and Science Act.
Commerce Secretary Gina Raimondo emphasized the significance of this investment, highlighting the pivotal role that GlobalFoundries plays in various sectors. Raimondo stated, “The chips that GlobalFoundries will make in these new facilities are essential. They power sophisticated military equipment, electric vehicles, and ensure smartphones have the latest features, enabling faster Internet connections for Americans.”
Driving Innovation and Job Creation
Aside from the $1.5 billion direct funding, the government plans to offer loans totaling up to $1.6 billion. This substantial financial support, combined with public and private investments, is expected to reach approximately $12.5 billion. GlobalFoundries intends to utilize these funds for multiple purposes, including constructing a new advanced chip factory in Malta, New York, ramping up production at its existing plant, and revitalizing operations in Burlington, Vermont.
The ambitious projects are projected to generate 1,500 manufacturing jobs and 9,000 construction jobs over the next decade. A key component of the agreement involves allocating $10 million towards worker training, and extending child care support services to construction workers, building a more inclusive and supportive work environment.
Protecting U.S. Interests and Future Prosperity
Senate Majority Leader Chuck Schumer underscored the critical importance of investing in semiconductor manufacturing, likening it to national security. Schumer emphasized the need to prevent economic advantages for other countries like China and Russia, echoing concerns raised during the disruptions caused by chip shortages in various industries.
With the economy taking center stage in the upcoming major elections, Democrats have emphasized their commitment to tackling inflation and making long-term investments to drive sustainable growth. Schumer highlighted these investments as pivotal to securing the country’s future and garnering public support for the Democrats’ economic agenda.