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The Biden administration has unveiled a plan to allocate $1.5 billion in funding to GlobalFoundries, aiming to enhance the United States’ semiconductor production capabilities.

This financial support, drawn from the CHIPS and Science Act, seeks to establish a new facility and expand the production and modernization efforts of GlobalFoundries’ operations in New York and Vermont. The Commerce Department has formalized this commitment through a nonbinding preliminary memorandum with the New York-based semiconductor manufacturer.

The investment is set to support a range of applications for GlobalFoundries’ chips, from automotive safety features to mobile device charging and securing wireless connections. A portion of the funds is earmarked for the expansion of a facility dedicated to servicing General Motors, highlighting the critical role these components play in various industries.

Vice President Harris emphasized the administration’s focus on “economic growth and job creation,” stating, “President Biden and I continue to be fully committed to growing our economy and creating opportunity in every part of America. Today’s announcement is another way in which we are delivering on that commitment in New York, Vermont, and communities throughout the country.”

Echoing the sentiment, Thomas Caulfield, president and CEO of GlobalFoundries, acknowledged the significant impact of the CHIPS and Science Act on the US semiconductor sector. He said, “The investments through the CHIPS and Science Act will also play an important role in making the US semiconductor ecosystem more globally competitive and resilient and cements the New York Capital Region as a global semiconductor hub.”