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After Senate Passes Landmark National Semiconductor Industry Bill, Including $ 52 Billion Investment, Schumer Announces Expansion of GlobalFoundries Semiconductor Presence in Region of the capital with a new factory and thousands of new jobs
GlobalFoundries plans to build a second semiconductor plant in Malta; The new facility will be larger than the existing Maltese factory and will create thousands of well-paying permanent and construction jobs
Schumer: GlobalFoundries Secures Upstate NY’s Role As Semiconductor Manufacturing Epicenter
After more than a year of major advocacy to grow national semiconductor manufacturing, research and development (R&D) and jobs and make historic investments in global federal R&D and innovation, which ultimately resulted in the adoption by the Senate of the U.S. Competition and Innovation Act which will invest $ 52 billion in the national semiconductor industry, Senate Majority Leader Charles E. Schumer today invited US Secretary of Commerce Gina Raimondo to Malta to announce that GlobalFoundries plans to build a second chip factory in Malta, New York. The planned plant is expected to be larger than the gigantic Fab 8, already in operation, and focus primarily on the production of automotive and military chips, creating thousands of construction and permanent jobs, in addition to the 3,000 employees that GlobalFoundries already employs in Malta, and help expand national supply chains of critical chip technology. The company previously announced that it is committed to entering into a project work agreement with local unions on future construction, just as it did during the construction of Fab 8, to ensure the creation of high-quality, well-paying construction jobs thanks to this investment. .
âAt the revolutionary Fab 8 12 years ago, I knew how important it would be to the Capital Region, however, few understood how transformational it would be: thousands of construction jobs, 3,000 permanent workers, a booming housing and retail economy in the region, and truly putting upstate New York on the global semiconductor industry map, â said majority leader Schumer. âToday, I say: that the result will not be equal, but even better!
âJust about every phase of modern life involves a device with a semiconductor chip, and we are in the midst of a global chip shortage that is hitting industries across the economy. GlobalFoundries’ huge Fab 8 maximized its ability to produce more chips â, Schumer continued. âThis is why it is vital for GlobalFoundries to build a second manufacturing facility and this is precisely why I fought tooth and nail to gain bipartisan support for the U.S. Innovation and Competitiveness Act. This bill provides a historic $ 52 billion for the national semiconductor industry, intended to boost domestic manufacturing investment by companies like GlobalFoundries. This is a victory for the company, for the Capital Region workforce, for the local and national economies and for our national security.
âGlobalFoundries is taking bold steps to address the US semiconductor supply chain shortage. Today we took another important step and announced that we will be building a new factory in Malta, New York. said Tom Caulfield, CEO of GlobalFoundries. “With a strong partnership and incredible support from Senator Schumer, the Federal and New York State governments, and our clients, we will meet the demand created by humanity’s need to grow, evolve and evolve.” connect to the digital age. “
“Semiconductor chips affect all sectors of our economy and are vital to both the security of our country and the competitiveness of the United States.” said Secretary Raimondo. âThe impacts of a short-term chip shortage have underscored the need for a long-term strategy to ensure our country has a more resilient semiconductor supply chain, which is accelerating states’ technological leadership. -United and avoids future chip supply constraints. The Biden-Harris administration is committed to working with the private sector to meet this challenge, strengthen supply chains and strengthen domestic semiconductor manufacturing. I want to thank Senator Schumer for leading the fight to pass the U.S. Competition and Innovation Act and applaud senators from both sides who came together to pass a critical bipartisan bill that ensures we have the investments we need to continue America’s legacy as a leader in innovation.
Last month, Schumer announced that the Senate had passed the U.S. Competition and Innovation Act, who combined his Endless Frontier Law, other bipartisan competitiveness bills, and included $ 52 billion in additional emergency funding to implement the semiconductor-related manufacturing and R&D programs the senator authorized in the National Defense Authorization Act of last year, as well as a program to support the production of legacy chips, like that of GlobalFoundries, which is essential for the automotive industry, the military and other critical industries. Schumer noted that the provisions of the US competition and innovation law will encourage the growth of the semiconductor industry in upstate New York.
Details on additional credits are shown below:
- $ 49.5 billion allocated over 5 years for a CHIPS for America fund. The funding is to be used to implement the Department of Commerce’s semiconductor and R&D incentive programs authorized by the FY21 NDAA (Sec. 9902 and 9906). Within the fund, the following credits are available:
- Incentive program: $ 39 billion allocated from the start and allocated over 5 years to implement the programs authorized in Sec. 9902. $ 2 billion is provided to focus solely on producing legacy chips to advance US economic and national security interests.
- $ 19 billion in FY22, including $ 2 billion in funding for legacy chip production
- $ 5 billion per year, FY23 to FY26
- Commercial R&D programs: $ 10.5 billion pre-allocated and allocated over 5 years to implement programs authorized in Sec. 9906, including the National Semiconductor Technology Center (NSTC), the National Advanced Packaging Manufacturing Program, and other R&D programs authorized in Sec. 9906.
- $ 5 billion in FY22
- $ 2.5 billion for advanced packaging
- $ 2 billion for the NSTC
- $ 500 million for other related R&D programs
For use in advanced packaging, NSTC and other related R&D programs, the following would be provided:
- $ 2 billion in FY23
- $ 1.3 billion in FY24
- $ 1.1 for FY25 and FY26
- $ 2 billion for a CHIPS for America defense fund: Funding is pre-allocated and $ 400 million is allocated annually, over 5 years, for the implementation of authorized programs in Sec. 9903 (b), providing support for R&D, testing and assessment, workforce development and other related activities, in coordination with the private sector, universities and others federal agencies to meet the needs of the Department of Defense and the intelligence community.
- $ 500 million for an international fund for technological security and innovation CHIPS for America: Funding is up-front and $ 100 million annually, allocated over 5 years to the State Department, in coordination with the United States Agency for International Development, the Export and Import Bank and the American Society international development funding, for coordination with foreign government partners to support international information and communications technology and semiconductor supply chain security activities, including by supporting the development and adoption of secure and reliable telecommunications technologies, semiconductors and other emerging technologies.