US Grants $1.5 billion to Chip for Semiconductor Production

According to Reuters, the US government will sendGlass-coreGlobalFoundries allocated $1.5 billion to subsidize its semiconductor production. This is the first major grant in a $39 billion fund approved by Congress in 2022, which aims to strengthen chip production in the United States.Under a preliminary agreement with the U.S. Department of Commerce, GF, the world’s third-largest chip foundry, plans to build a new semiconductor manufacturing facility in Malta, New York, and expand its existing operations in Malta and Burlington, Vermont.The Commerce Department said the $1.5 billion grant for Lattice would be accompanied by a $1.6 billion loan, which is expected to lead to a total of $12.5 billion in potential investments in the two states.

Gina Raimondo, the commerce secretary, said: “The chips GF is producing in the new facility are critical to our national security.” GF’s chips are widely used in satellite and space communications, the defense industry, as well as blind spot detection and crash warning systems for cars, as well as Wi-Fi and cellular connections.”We are in very complex and challenging negotiations with these companies,” Mr Raimondo said. “These are highly complex and unprecedented plants. New generation investments include Taiwan Semiconductor Manufacturing (TSMC), Samsung, Intel and others are building factories of a scale and complexity never before seen in America.”GF Chief Executive OfficerThomas CaulfieldThe industry now needs to increase its focus on U.S.-made chip demand and cultivate the U.S. semiconductor workforce.Raimondo said the expansion of the Malta plant would ensure a steady supply of chips for automotive component suppliers and manufacturers. The deal follows a long-term agreement signed with General Motors on Feb. 9 to help the automaker avoid shutdowns caused by chip shortages during similar outbreaks.General Motors President Mark Reuss said Lattice’s investment in New York would ensure a strong supply of semiconductors in the United States and support America’s leadership in automotive innovation. Raimondo added that Lattice’s new plant in Malta will produce valuable chips that are currently not available in America.