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U.S. Senators Gary Peters (MI) and Debbie Stabenow (MI) announced Hemlock Semiconductor (HSC) will receive up to $325 million in federal funding to build a new, state-of-the-art manufacturing facility on its existing campus in Hemlock, Michigan. The new facility will allow the company to expand production of hyper-pure polysilicon needed to manufacture semiconductor chips, which are used to make a wide variety of products including vehicles, cell phones, washing machines, medical devices, agricultural equipment, solar panels, and defense technologies.
The funding comes from the CHIPS and Science Act, legislation Peters and Stabenow helped craft and pass into law to boost U.S. production of semiconductor chips, create American jobs, and strengthen U.S. national security by lessening our dependence on foreign companies for these critical technologies. This investment is expected to create 180 good-paying manufacturing jobs, as well as thousands of construction jobs, in Michigan.
Hemlock Semiconductor (HSC) is the nation’s leading producer of hyper-pure polysilicon for the semiconductor and solar industries and one of only five companies in the world capable of producing the highest quality polysilicon for semiconductor chips.
“In Michigan, our workers know how to make things well and with precision. That’s why I’m thrilled to announce this major investment that is going to keep Michigan at the forefront of advanced manufacturing, nationally and globally, and create thousands of good-paying jobs in our state,” said Senator Peters. “As one of just five companies worldwide and the only company headquartered in the U.S. that produces hyper-pure polysilicon for semiconductors, Hemlock Semiconductor plays a critical role in both our economy and national security. I’m proud to have authored the provision in the CHIPS and Science Act that ensured HSC would be eligible for this grant and have since continued to advocate for HSC as they work to ramp up production here at home. This funding will be a catalyst to that effort.”
“Michigan knows all too well what happens when we are dependent on semiconductor chips made halfway around the world. That’s why, as part of the CHIPS and Science Act, I led the effort with Senator Peters and Representative Kildee to make sure semiconductor chips are manufacturing here in the United States and there is no better place to make them than Michigan. This important federal investment will boost Michigan manufacturing, fix our broken supply chains, lower costs, and bring jobs home,” said Senator Stabenow. “I applaud Hemlock Semiconductor’s leadership in semiconductor manufacturing and improving our supply chains.”
“HSC is proud to be a manufacturing powerhouse for two vital industries of the future—semiconductor and solar. Bolstered by the CHIPS Act, we are planning for a once-in-a-generation investment in advanced technologies to continue serving as a top polysilicon supplier to the leading-edge semiconductor market,” said HSC Chairman and CEO AB Ghosh. “Our customers want high quality and sustainably made polysilicon. This proposed investment demonstrates that the Biden-Harris Administration, Governor Whitmer and our Michigan congressional champions understand HSC’s unique ability to meet those demands and our crucial role in strengthening American interests. As the United States works to reshore critical supply chains, we hope to make additional investments.”
Peters and Stabenow have made strengthening American manufacturing and securing domestic supply chains a top priority. The CHIPS and Science Act includes a provision Peters and Stabenow authored to support the domestic production of mature semiconductor technologies and ensure that projects supporting critical manufacturing industries are given priority status, which would include the automotive sector. This is in addition to $50 billion already in the bill to incentivize U.S. production of all types of semiconductors – for a total of $52 billion.
The CHIPS and Science Act also included Peters’ bipartisan Investing in Domestic Semiconductor Manufacturing Act, which ensures federal incentives to boost domestic semiconductor manufacturing include U.S. suppliers that produce the materials and manufacturing equipment that enable semiconductor manufacturing – including HSC. This provision authored by Peters ensured HSC would be eligible for the grant funding announced today. The CHIPS and Science Act additionally authorized increased funding for the Manufacturing Extension Partnership (MEP) program, which has been a priority for Peters and Stabenow.
Last year, the Senate unanimously passed Peters’ bipartisan legislation to strengthen federal efforts to expand domestic manufacturing of semiconductor chips. Peters’ Securing Semiconductor Supply Chains Act would direct the U.S. Department of Commerce’s SelectUSA program, in collaboration with other federal agencies and state economic development organizations, to develop strategies that would attract investment in U.S. semiconductor manufacturers and supply chains.
Original – Hemlock Semiconductor
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The U.S. Department of Commerce and Wolfspeed announced they have signed a non-binding preliminary memorandum of terms (PMT) for up to $750 million in proposed direct funding under the CHIPS and Science Act. In addition, a consortium of investment funds led by Apollo, The Baupost Group, Fidelity Management & Research Company and Capital Group have agreed to provide Wolfspeed an additional $750 million of new financing.
Together these investments support Wolfspeed’s long-term growth plans and bolster domestic production of silicon carbide to power clean energy systems underpinning electric vehicles (EVs), artificial intelligence (AI) data centers, battery storage and more. In addition, Wolfspeed expects to receive $1 billion of cash tax refunds from the advanced manufacturing tax credit under the CHIPS and Science Act (section 48D), giving the company, in total, access to up to $2.5 billion of expected capital to support the expansion of silicon carbide manufacturing in the United States.
Wolfspeed is the world’s largest producer of silicon carbide technology, pioneering the technology more than 35 years ago on the campus of North Carolina State University. Since that time, Wolfspeed has become the global leader in silicon carbide technology, one of the fastest growing components of the broader semiconductor industry.
- Silicon carbide is a superior alternative to silicon for high power applications – such as EV powertrains, e-mobility, renewable energy systems, battery energy storage systems, and AI and cryptocurrency data centers – that unlocks improved performance and lower system costs.
- Notably, the importance of bolstering the domestic production of silicon carbide has been recognized across multiple federal agencies; the Department of Energy denoted it as one of 17 “critical materials” with a high risk of supply disruption that are integral to clean energy technologies, while the Department of Commerce recognizes silicon carbide semiconductors as important to national security.
- As the U.S. and the world pursue more efficient and environmentally friendly solutions to meet the world’s ever-increasing need for high-voltage energy products, it is crucial that the U.S. continue to make strategic investments to cement its technological leadership position, while continuing to spur American innovation in critical technologies.
Wolfspeed CEO, Gregg Lowe, said, “To reach this milestone under the U.S. CHIPS and Science Act is an incredible achievement in Wolfspeed’s long-term growth strategy, and we believe today’s announcement is a testament to the market-leading quality of Wolfspeed products and significance of Wolfspeed to broader U.S. economic and national security interests. This support galvanizes our ability to expand domestic manufacturing, accelerate innovation in next-generation semiconductor technology, and meet the increasing global demand for silicon carbide. As a key player in the semiconductor industry, this proposed investment will enable us to solidify our leadership position with a first-of-its-kind 200mm silicon carbide manufacturing footprint in upstate New York and central North Carolina, while contributing to the resilience and competitiveness of the U.S. supply chain. It’s not just about growth for Wolfspeed—it’s about driving technological advancement that powers the future.
“Silicon carbide is already enabling superior energy efficiency across mission-critical industries of the future like electric vehicles, e-mobility, solar and wind energy, industrial power applications, and AI data centers. While EVs have been the driver of silicon carbide adoption thus far, we believe the use cases for our technology are expansive and will only continue to grow as more and more industries find themselves needing to solve for the same power loss, system size, and system cost challenges as automakers,” concluded Lowe.
“Artificial intelligence, electric vehicles, and clean energy are all technologies that will define the 21st century, and thanks to proposed investments in companies like Wolfspeed, the Biden-Harris Administration is taking a meaningful step towards reigniting U.S. manufacturing of the chips that underpin these important technologies,” said U.S. Secretary of Commerce Gina Raimondo. “Because of the Biden-Harris Administration’s CHIPS and Science Act, the United States is building and fortifying our semiconductor manufacturing capabilities to serve our economic and national security interests while creating jobs and economic opportunities for communities across the country.”
“Wolfspeed is leading the pack in bringing semiconductor manufacturing back to America. This major multibillion dollar investment powered by my CHIPS & Science Law will accelerate the ongoing expansion in the Mohawk Valley, helping speed up hiring of hundreds of new good-paying jobs that Wolfspeed is creating in the Mohawk Valley and providing long term work for the Marcy fab to succeed well into the future, further establishing Upstate NY as a global hub for chip manufacturing,” said Senator Chuck Schumer. “From electric vehicles to artificial intelligence, this critical technology relies on the silicon carbide chips that Wolfspeed will manufacture and perfect in the Mohawk Valley. Today’s massive investment will make America’s economy and our national security stronger as Wolfspeed helps us write the next chapter of America’s resurgence as the leader in the semiconductor industry, with the Mohawk Valley as the beating heart.”
“Wolfspeed is a homegrown semiconductor innovator and manufacturer creating great jobs in North Carolina, and it’s important they received this major grant under the CHIPS and Science Act,” said North Carolina Governor Roy Cooper. “Thanks to this landmark legislation from the Biden-Harris Administration and our great workforce, we will continue to see good paying jobs coming to North Carolina.”
“This $750 million federal investment is a testament to Wolfspeed’s unique leadership in silicon carbide semiconductor manufacturing, and I applaud Wolfspeed’s continued commitment to North Carolina,” said Senator Thom Tillis. “I was proud to vote for the CHIPS and Science Act to provide the funding for this investment in North Carolina and to support our economic and national security.”
“North Carolina continues to be a leader in cutting-edge manufacturing that is vital to our country’s national and economic security,” said Senator Ted Budd. “This new Wolfspeed site in Siler City will bring good-paying jobs to the area and is an important first step in making sure America has secure supply chains for critical semi-conductors.”
“We are pleased to expand our investment in Wolfspeed by providing additional capital in support of the company’s build out of its leading silicon carbide capabilities,” said Apollo Partner Joseph Jackson. “We believe Wolfspeed is at the forefront of a critical transformation in sustainable transportation and ensuring that the company has durable capital access to complete its expansion plans will help solidify its leadership in this space. Along with our lending consortium, which includes multiple funds that also own substantial equity stakes in the company, we believe this strategic investment will drive significant long-term value while advancing key tenets of the CHIPS and Science Act.”
These proposed funds, which are expected to be received upon milestone achievements in the coming years, would enable Wolfspeed to complete its multi-billion-dollar greenfield U.S. capacity expansion plan, which consists of the largest and most advanced 200mm silicon carbide footprint in the world. In addition to the proposed direct funding, Wolfspeed intends to benefit from the U.S. Treasury Department Investment Tax Credit of up to 25% of the qualified capital expenditures primarily related to its construction and installation of equipment at The John Palmour Manufacturing Center for Silicon Carbide in Siler City, NC and completion of the Mohawk Valley Fab M-Line West Expansion in Utica, NY.
This multi-billion-dollar investment will bolster Wolfspeed’s balance sheet and will help to fuel significant growth through cash generation and accelerate its long-term profitability goals.
Summary of the PMT
The PMT outlines key terms for a CHIPS incentive award, including the proposed amount and form of the award, and provides that the disbursement of funds will be conditioned upon the achievement of certain operational and construction milestones and other requirements.
The PMT includes an obligation for Wolfspeed to raise an aggregate of $750 million in debt financing over three tranches through the issuance of senior notes under an amended and restated indenture. Wolfspeed and its lenders, led by Apollo funds, have reached an agreement for this additional financing, including $250 million to be available within 10 business days, and have agreed to certain intercreditor terms with the CHIPS Program Office as described in the PMT.
Together, the PMT and the agreement with lenders also requires:
- Wolfspeed to undertake further actions with respect to its capital structure, including (a) restructuring or refinancing its outstanding 2026, 2028 and 2029 convertible notes at specified intervals prior to their respective maturity dates, (b) deferring a total of $120 million in cash interest payments due prior to June 30, 2025 under an unsecured customer refundable deposit agreement, and (c) raising up to $300 million of additional capital from non-debt sources over the next 12 months.
- In addition, Wolfspeed has agreed with its lenders to certain revisions in the terms of the senior notes, including revisions to the interest rate applicable to the senior notes, as described in the Form 8-K filed today with Securities and Exchange Commission (SEC).
The PMT provides that the award is subject to due diligence and the negotiation and signing of a definitive direct funding agreement with the Department of Commerce and the negotiation and signing of an intercreditor agreement between the Department of Commerce and the Company’s lenders, which may contain different or additional conditions not contained in the PMT. Additional terms of the PMT were not disclosed.
Original – Wolfspeed
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Polar Semiconductor announced that the company has completed its sale to Niobrara Capital and Prysm Capital. The $175 Million in equity financing has been closed to convert Polar to a U.S.-owned merchant foundry and fund expansion of its Bloomington, Minnesota manufacturing facility. In total, Polar expects to invest approximately $525 Million in the expansion of the facility over the next two years and branch into innovative technologies to serve new customers and markets.
Polar has signed Award Documents with the U.S. Department of Commerce, under which it will receive up to $123 Million in direct funding as part of the U.S. CHIPS and Science Act, and with the Minnesota Department of Employment and Economic Development (DEED), under which it will receive $75 Million in incentives as part of the Minnesota Forward Fund. Polar is the first award recipient under the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication Facilities and the Minnesota Forward Fund. Polar plans to claim the Department of the Treasury’s Investment Tax Credit, which is expected to be up to 25% of qualified capital expenditures.
Through these investments, Polar plans to:
- Double production capacity, ramping up from approximately 20,000 wafers per month to nearly 40,000 wafers per month,
- Upgrade and modernize its facility to become globally competitive through economies of scale,
- Deliver cutting-edge semiconductor solutions to the U.S. automotive, aerospace, defense, optoelectronics, MEMS, and medical device industries, and
- Create 160+ new jobs, strengthening Polar’s commitment to its community and driving economic growth in the State.
“Semiconductors – those tiny chips smaller than the tip of your finger – power everything from smartphones to cars to satellites and weapons systems. I signed the CHIPS and Science Act to revitalize American leadership in semiconductors, strengthen our supply chains, protect our national security, and advance American competitiveness. And over the last three and a half years, we have done just that, catalyzing over $400 billion in private sector investments in semiconductors and electronics that are creating over 115,000 construction and manufacturing jobs. This year alone, the United States is on pace to see more investment in electronics manufacturing construction than it did over the last 24 years combined,” said President Joe Biden.
“Today’s announcement that the Department of Commerce has finalized the first commercial CHIPS Incentives award with Polar Semiconductor marks the next phase of the implementation of the CHIPS and Science Act and demonstrates how we continue to deliver on the Investing in America agenda. Polar’s new facility will also be completed under a Project Labor Agreement to support its construction workforce, creating good-quality union jobs in Bloomington, Minnesota. Today’s announcement is just one of the many ways our Investing in America agenda is reshoring U.S. manufacturing, investing in workers and communities across the country, and advancing America’s leadership in the technologies of tomorrow.”
“Today represents an important milestone in the implementation of the historic CHIPS and Science Act as we announce the first award agreement with Polar,” said U.S. Secretary of Commerce Gina Raimondo. “The Biden-Harris Administration’s investment in Polar will create a new U.S.-owned foundry for sensor and power semiconductors and modernize and expand Polar’s facilities in Minnesota, strengthening our national and economic security, bolstering our supply chains, and creating quality jobs.”
“America must stay on the cutting edge of manufacturing to maintain our economic edge on the world stage. This landmark federal investment in Polar Semiconductor’s Bloomington facility is a major step toward strengthening domestic production of advanced semiconductors,” said Senator Amy Klobuchar. “I worked closely with Polar Semiconductor to secure this grant and ensure Minnesota continues to be a premier destination for business investment.”
“Minnesota is lucky to be home to businesses like Polar that consistently produce innovative, high-quality products with a global reach,” said Governor Tim Walz. “With partnerships like this, we can lead the nation in creating high-growth, high-demand, good-paying jobs.”
Surya Iyer, President and COO of Polar Semiconductor said, “Polar and its employees are excited to embark on our transformative project. We welcome new customers and partnerships, and as a domestic U.S.-owned sensor and advanced power semiconductor merchant foundry, we will support technology and design innovation, protect intellectual property, facilitate onshoring and technology transfers, and provide efficient low- to high-volume manufacturing with world-class quality. Through our collaborative and sustained workforce development efforts, we expect to support customers with highly skilled employees today and into the future. We are pleased to close on the significant equity investment from Niobrara Capital and Prysm Capital, and we extend our sincere thanks to our partners at the U.S. Department of Commerce, the State of Minnesota, and the City of Bloomington for their support of the future of American semiconductor manufacturing.”
Chip Schorr, Founder and Managing Partner of Niobrara Capital, said, “Polar is positioned to enable many of America’s most critical industries, such as aerospace and defense, automotive and medical, to have a dedicated, high performance, low cost, onshore source of power semiconductors and sensors. We are pleased to be partnering with the company to support its growth and the growth of U.S. technology manufacturing leadership.”
Jay Park, Co-Founder and Managing Partner of Prysm Capital, said “The public and private investment in Polar is a testament to the strength of Polar’s offering and team and a significant event for onshore technology investment in America. We are already seeing robust demand for Polar’s planned capacity that exceeds our expectations and reinforces our confidence in Polar.”
Polar Semiconductor leads the Minnesota CHIPS Coalition, which is composed of more than 70 organizations, including manufacturers, supply-chain partners, education and training providers, labor organizations, and state and local governments. The coalition is determined to reinvigorate the region’s legacy in technology and establish the Midwest’s semiconductor industry as a national leader.
Polar also leads the Minnesota CHIPS Coalition Workforce Partnership, collaborating with semiconductor companies, educational institutions, training organizations, the Governor’s Workforce Development Board (GWDB), and DEED. The goal is to develop a next-generation high-tech manufacturing workforce through training, upskilling, and apprenticeships. These efforts are supported by state investments and a $3 Million dedicated portion of the CHIPS award. The partnership will also draw on national programs, like Indiana’s DoD-backed SCALE initiative, to enhance local efforts.
Original – Polar Semiconductor
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Texas Instruments (TI) and the U.S. Department of Commerce have signed a non-binding Preliminary Memorandum of Terms for up to $1.6 billion in proposed direct funding under the CHIPS and Science Act to support three 300mm wafer fabs already under construction in Texas and Utah. In addition, TI expects to receive an estimated $6 billion to $8 billion from the U.S. Department of Treasury’s Investment Tax Credit for qualified U.S. manufacturing investments. The proposed direct funding, coupled with the investment tax credit, would help TI provide a geopolitically dependable supply of essential analog and embedded processing semiconductors.
“The historic CHIPS Act is enabling more semiconductor manufacturing capacity in the U.S., making the semiconductor ecosystem stronger and more resilient,” said Haviv Ilan, president and CEO of Texas Instruments. “Our investments further strengthen our competitive advantage in manufacturing and technology as we expand our 300mm manufacturing operations in the U.S. With plans to grow our internal manufacturing to more than 95% by 2030, we’re building geopolitically dependable, 300mm capacity at scale to provide the analog and embedded processing chips our customers will need for years to come.”
Since its founding more than 90 years ago, TI has been advancing technology, pioneering the transition from vacuum tubes to transistors and then to integrated circuits. Today, TI is the largest U.S. analog and embedded processing semiconductor manufacturer. TI chips are essential in nearly every type of electronic device, from cars with advanced safety and intelligence systems to life-saving medical equipment and smart appliances that make homes safer and more efficient.
The proposed direct funding under the CHIPS Act would support TI’s investment of more than $18 billion through 2029, which is part of the company’s broader investment in manufacturing. This proposed direct funding will support three new wafer fabs, two in Sherman, Texas, (SM1 and SM2) and one in Lehi, Utah (LFAB2), specifically to:
- Construct and build the SM1 cleanroom and complete pilot line for first production;
- Construct and build the LFAB2 cleanroom for first production; and
- Construct the SM2 shell.
These connected, multi-fab sites benefit from shared infrastructure, talent and technology sharing, and a strong network of suppliers and community partners. They will produce semiconductors in 28nm to 130nm technology nodes, which provide the optimal cost, performance, power, precision and voltage levels required for TI’s broad portfolio of analog and embedded processing products.
“With this proposed investment from the Biden-Harris Administration in TI, a global leader of production for current-generation and mature-node chips, we would help secure the supply chain for these foundational semiconductors that are used in every sector of the U.S. economy, and create tens of thousands of jobs in Texas and Utah,” said U.S. Secretary of Commerce Gina Raimondo. “The CHIPS for America program will supercharge American technology and innovation and make our country more secure – and TI is expected to be an important part of the success of the Biden-Harris Administration’s work to revitalize semiconductor manufacturing and development in the U.S.”
With a long history of supporting its employees to build long-term, successful careers, TI is also investing in building its future workforce. TI will create more than 2,000 company jobs across its three new fabs in Texas and Utah, along with thousands of indirect jobs for construction, suppliers and supporting industries.
“We are proud to work with Texas Instruments as they build new semiconductor fabs in Sherman and solidify Texas as the best state for semiconductors. Texas Instruments invented the microchip in Texas, and we are honored to be home to TI’s semiconductor manufacturing facilities in Dallas, Richardson and Sherman,” said Texas Gov. Greg Abbott. “With this latest project, TI is building on its more than 90-year legacy in Texas and adding thousands of good-paying jobs for Texans to manufacture critically important technology.”
“By investing in semiconductor manufacturing, we are helping secure this vulnerable supply chain, boosting our national security and global competitiveness, and creating new jobs for Texans,” said U.S. Sen. John Cornyn. “The chipmaking capabilities these resources will enable at Texas Instruments will help the U.S. reclaim its leadership role in the critically important semiconductor industry, and I look forward to seeing more Texas-led advancements in the years to come.”
In order to build a future-ready workforce, TI is enhancing the skills of current employees, expanding internships and creating pipeline programs with a focus on building electronic and mechanical skills. TI has robust engagements with 40 community colleges, high schools and military institutions across the U.S. to develop future semiconductor talent.
“Utah is thrilled that Texas Instruments is expanding its manufacturing presence in the Silicon Slopes, furthering the impact Utahns have on critical semiconductor technology,” said Utah Gov. Spencer Cox. “This investment in semiconductor manufacturing not only creates more jobs, but also brings supply chains back to the United States.”
“This proposed CHIPS funding will further support Texas Instruments’ investment in its new semiconductor fab in Lehi —and enhance Utah’s vital role in our national defense and economic success,” said U.S. Senator Mitt Romney. “I was an original sponsor of the CHIPS and Science Act—which made today’s announcement possible—because in order to compete on the world stage, we must continue to promote innovation, foster scientific talent, and expand research here at home. Texas Instruments’ expanded operations will help make the United States more self-reliant for chips essential to our national security and economy.”
TI has a long-standing commitment to responsible, sustainable manufacturing and environmental stewardship. As part of this commitment, TI continually invests in its fabrication processes and equipment to reduce energy, material and water consumption, and greenhouse gas (GHG) emissions.
The company’s 300mm wafer fabs will be entirely powered by renewable electricity. Additionally, all of TI’s new 300mm fabs are designed to meet LEED Gold standards for structural efficiency and sustainability. TI’s 300mm manufacturing facilities bring advantages in reducing waste and improving water and energy consumption per chip.
TI semiconductors are and will increasingly play a critical role in helping reduce the impact on the environment, helping customers create smaller, more efficient and cost-effective technology solutions that in turn drive continued innovation in electrification and the expanded usage of renewable energy.
Original – Texas Instruments
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GlobalWafers Co., Ltd. announced that GWC subsidiaries, GlobalWafers America (GWA) and MEMC LLC, have signed a non-binding preliminary memorandum of terms (PMT) with the U.S. Department of Commerce for up to $400 million in direct funding under the CHIPS and Science Act to support GWC’s construction of advanced silicon wafer manufacturing facilities in Sherman, Texas and St. Peters, Missouri.
When complete, the Sherman, Texas complex will be the first fully integrated advanced silicon wafer production line built in the United States in over 20 years. GWA President Mark England remarked, “With the support of the Biden Administration, we are honored to be bringing to American shores the world’s most cutting-edge 300mm semiconductor wafer technology, filling what the White House has called a “key vulnerability” within the U.S. semiconductor supply chain. GlobalWafers is fully committed to the U.S. market, and we are excited to be playing a defining role in the nation’s semiconductor rebirth.”
With this proposed investment, GWA will also become a key node in Texas’s rapidly developing Silicon Prairie ecosystem. England added, “The state of Texas and the North Texas Texoma region have welcomed GWA with open arms and investment incentives. We are proud to reciprocate their hospitality by bringing to Sherman 1200 construction jobs and 750 high paying manufacturing jobs ranging from production operators to technicians and engineers between now and 2026.” As the only confirmed advanced node wafer manufacturer now investing in the United States, GWA will reduce the United States’ complete dependence on overseas manufacturing facilities to provide wafers for advanced chips.
Already home to semiconductor pioneer Texas Instruments (TI), the GlobalWafers investment will help make North Texas the most unique semiconductor ecosystem in the country as headquarters to the nation’s leading analogue and embedded semiconductor company AND home to the country’s only 300-mm silicon wafer manufacturer for advanced chips. TI Vice President of Worldwide Procurement and Logistics Rob Simpson congratulated both GlobalWafers and the U.S. Department of Commerce on this announcement, noting: “TI welcomes the investment in GlobalWafers America in North Texas, as it will be a very meaningful addition to the growing semiconductor ecosystem here.”
“Texas continues to lead the country as the Best State for Business,” said Governor Greg Abbott. “Companies like GlobalWafers America – the only advanced node wafer manufacturer in the U.S. – are investing in Texas because of our world-class business climate, business-friendly regulations, and young, growing, and highly skilled workforce. GlobalWafers is a crucial partner in our efforts to remain the nation’s No. 1 state for semiconductor manufacturing, and I thank them for choosing North Texas for their new facility.”
In support of national economic and resilience objectives, GWC is committed to developing in the United States a broad range of next-generation wafer technology. This includes establishing a Research and Development Center of Excellence in Sherman as well as building the United States’ only 300-mm manufacturing facility for advanced Silicon-On-Insulator (SOI) wafers at GWC’s MEMC LLC subsidiary in St. Peters, Missouri where the project brings an additional 500 construction jobs and 130 high quality manufacturing jobs.
As the only U.S. source of 300-mm SOI wafers, the MEMC investment will add a new level of resilience to the U.S. supply chain. On this point, Ashlie Wallace, Senior Vice President of Global Supply Chain at GlobalFoundries observed, “GlobalFoundries applauds the proposed CHIPS direct funding to GlobalWafers, a longstanding strategic partner of ours which provides an important domestic supply of silicon wafers critical for the essential semiconductors we manufacture.” Wallace added, “Federal investments across the U.S. semiconductor ecosystem are strengthening our industry and the supply chains that are vital to our customers and the economy.”
Noting the significance of this proposed funding to U.S. supply chain resilience efforts, U.S. Secretary of Commerce Gina Raimondo said, “President Biden is restoring our leadership in the entire semiconductor supply chain – from materials to manufacturing, to R&D. With this proposed investment, GlobalWafers will play a crucial role in bolstering America’s semiconductor supply chain by providing a domestic source of silicon wafers that are the backbone of advanced chips. As a result of this proposed investment, the Biden-Harris Administration is helping to secure our supply chains, which will create over 2,000 jobs across Texas and Missouri and ultimately lower costs and improve economic and national security for Americans.”
In addition to the direct grant funding announced today, GWC plans to apply for the U.S. Treasury Department’s Advanced Manufacturing Investment Credit (AMIC) of up to 25% of qualified expenditures at the GWA and MEMC LLC facilities.
From Hsinchu, Taiwan, GlobalWafers Chairwoman and CEO Doris Hsu expressed her personal thanks to the U.S. Congress, the Department of Commerce, and the Department of Treasury for CHIPS Act support: “Thanks to U.S. Government support, GlobalWafers is pleased to be a key node in the U.S. semiconductor supply chain. I’d like to particularly thank Secretary Raimondo for her partnership and vision throughout this journey. From day one, her encouragement gave me confidence that U.S. Government support for our investment would be significant and strategic to U.S. objectives.”
As a key ESG imperative, GlobalWafers companies across the globe practice green manufacturing and constantly seek to improve energy efficiency, water conservation, waste management and air pollution control. When at full ramp, GWC’s new and expansion facilities in Sherman and St. Peters will recycle up to half of the water used in production and have forward plans to utilize 100% renewable energy to manufacture the world’s most advanced silicon wafers. The GlobalWafers family of companies is committed to reducing our environmental footprint to the fullest extent possible.
GlobalWafers Co., Ltd., the world’s third largest supplier of semiconductor wafers, maintains 18 manufacturing and operational sites spanning three continents and nine countries. The company is a global leader in semiconductor technology, providing innovative and advanced technology solutions to leading chip manufacturers to transform lives around the world.
Original – GlobalWafers
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GlobalFoundries announced a partnership with Micron Technology, Inc. and the U.S. National Science Foundation (NSF) to invest in workforce development at Minority Serving Institutions (MSI) to help meet the growing workforce needs of the U.S. semiconductor ecosystem.
In partnership with Micron and the NSF, the investment will support semiconductor workforce development at Historically Black College and Universities, Hispanic Serving Institutions, Asian American Native American Pacific Islander-Serving Institutions and Tribal Colleges and Universities throughout the U.S. These investments aim to diversify the semiconductor workforce and build robust talent pathways through education and career reentry initiatives.
The companies’ and NSF ’s support of U.S. MSIs is directly aligned with the workforce development objectives of the federal CHIPS and Science Act as well as New York State’s Green Chips legislation, to ensure a robust pipeline of U.S. semiconductor talent.
“As an industry, we must work together to collectively address the great need for a robust, diverse pipeline of talented individuals who will be the semiconductor innovators and leaders of tomorrow,” said Pradheepa Raman, chief people officer of GF. “Strong public-private partnerships, like our collaboration with Micron and NSF to support Minority Serving Institutions, are critical to continue the work of inspiring and developing the skilled workforce our industry needs to grow.”
“Partnering with leaders in industry, government and education to meet the needs of a growing semiconductor workforce in the U.S. is an essential part of nurturing the talent necessary to fill key openings in the semiconductor industry,” said Erwin Gianchandani, NSF assistant director for Technology, Innovation and Partnerships. “We look forward to collaborating with our partners to increase access to equitable education, address student programming and teacher and faculty professional development and strengthen infrastructure through future funding opportunities.”
“Micron’s investments in U.S. expansion are about much more than building fabs. We’re investing in people and in partnerships to expose learners from every background to opportunities they may not otherwise have without support,” said April Arnzen, executive vice president and chief people officer at Micron and president of the Micron Foundation. “We’re honored to see initiatives like Micron’s MSI Semiconductor Network, which are at the forefront of our industry’s efforts to prepare the semiconductor workforce and research ecosystem to meet growing demand for talent, recognized by government leaders in the U.S. and globally.”
“Micron’s and GlobalFoundries’ historic investments are transformative for Upstate New York and the nation, and today’s announcement will put in place another critical workforce development initiative to deliver the workers needed to fill the tens of thousands of new jobs that will be created. This initiative will especially focus on connecting underserved and historically marginalized New Yorkers and others around the country to new job opportunities in the semiconductor industry, including to build chips in Upstate NY,” said Senate Majority Leader Chuck Schumer.
“In recent weeks, my CHIPS & Science Law delivered a whopping $6.1 billion for Micron to build their mega-fab project and another $1.5 billion for GlobalFoundries’ expansion. Now, Micron and GlobalFoundries are working to develop a workforce pipeline to train and attract the next generation of talent, putting students from our top-notch educational institutions into jobs in the semiconductor industry. I am glad this initiative is supported by National Science Foundation funds from my CHIPS & Science Law, which serves as the fuel for major investments like Micron’s and GlobalFoundries’ to bring chip manufacturing back to America and helping our future scientists and engineers reach new heights with good-paying jobs right at their doorstep.”
“We are excited about the opportunities to grow efforts with GlobalFoundries that have led to increased summer internships and experiences at GF’s Malta, NY, facility for students at multiple CUNY schools including LaGuardia, Queensborough and City Tech,” said Tavis Ezell, director of business development for The City University of New York’s (CUNY) Advanced Science Research Center (ASRC). “With our industry partners, we are identifying the necessary skills needed to support jobs across the vast semiconductor ecosystem and bolster current curricula across a wide range of CUNY degrees, connecting interested students to training opportunities, whether their first internship experience is at the ASRC, or at an industry partner such as GlobalFoundries.”
GF’s support of MSIs is the company’s latest effort to build a critical talent pipeline for a current and future workforce. In November 2023, the company announced a new student loan repayment program to help U.S.-based employees and eligible new recruits pay up to $28,500 in student loan debt, tax-free, to help ease the financial burden of higher education and training. GF also offers tuition reimbursement for employees pursuing undergraduate and graduate degrees, fully paid parental leave, employee fitness stipend to promote good health and childcare subsidy towards dependent care. GF’s first-of-its-kind apprenticeship program provides opportunities for individuals with no prior experience or training in the semiconductor industry, offering full-time paid positions and cost-free college courses to high school graduates.
GF has established strategic partnerships nationwide with top universities and strong regional engagements with community colleges in New York and Vermont as well as access to worldwide talent through its global footprint to help build a diverse workforce and semiconductor talent pipeline. To help inspire younger children, GF has a robust STEM outreach program to engage with regional middle schools and high schools, including Early College High School and Career and Technical Education programs, to bring industry awareness and hands-on experiences to students.
Original – GlobalFoundries
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Polar Semiconductor, the only U.S.-based manufacturer specializing in sensor, power, and high-voltage semiconductors, announced plans to expand its Bloomington, Minnesota manufacturing facility and branch into innovative technologies to serve new customers and markets. Polar expects to invest approximately $525 million in the expansion of the facility over the next two years, subject to receipt of appropriate approvals and federal, state, and local incentives.
Polar has signed a non-binding preliminary memorandum of terms with the Department of Commerce, under which it would receive $120 million in proposed direct funding as part of the U.S. CHIPS and Science Act, and a $75 million investment from the State of Minnesota. In addition, Polar has entered into a definitive agreement pursuant to which Niobrara Capital and Prysm Capital are leading an equity investment of $175 million, enabling Polar to transition to a U.S.-owned merchant foundry. Polar plans to claim the Department of the Treasury’s Investment Tax Credit, which is expected to be up to 25% of qualified capital expenditures.
Through these investments, Polar expects to:
- Double its current U.S. production capacity of 200mm semiconductor wafers, increasing production from approximately 20,000 wafers per month to nearly 40,000 wafers per month;
- Expand and modernize its facility with new automation and AI capabilities to become globally competitive through economies of scale;
- Better serve customers in automotive, aerospace and defense, optoelectronics, MEMS, and medical devices in the U.S. with cutting-edge semiconductor products; and
- Create over 160 new jobs to further strengthen Polar’s support of its community.
Surya Iyer, President and COO of Polar Semiconductor, said, “We are very pleased to announce this historic investment in Minnesota semiconductor manufacturing. Our expanded manufacturing facility will allow us to increase capacity and branch into innovative technologies to serve new customers and markets. Polar and its employees are grateful to the U.S. Department of Commerce and the State of Minnesota for their commitment to the future of American semiconductor manufacturing and appreciate the strong collaboration with the CHIPS Program Office, Minnesota Department of Employment and Economic Development (“DEED”), and the City of Bloomington, Minnesota, throughout this process. Polar is also pleased to welcome a significant equity investment from Niobrara Capital and Prysm Capital, which will allow the Company to become U.S.-owned, and for the continued support of our long-term partners, Sanken Electric and Allegro MicroSystems.”
Chip Schorr, Founder and Managing Partner of Niobrara Capital, said, “Polar is positioned to enable many of America’s most critical industries, such as aerospace and defense, automotive and medical, to have a dedicated, high performance, low cost, onshore source of power semiconductors and sensors. We are pleased to be partnering with the company to support its growth and the growth of U.S. technology manufacturing leadership.”
Jay Park, Co-Founder and Managing Partner of Prysm Capital, said “The public and private investment in Polar is a testament to the strength of Polar’s offering and team and a significant event for onshore technology investment in America. We are already seeing robust demand for Polar’s planned capacity that exceeds our expectations and reinforces our confidence in Polar.”
“Thanks to President Biden’s leadership, with this announcement we are making taxpayer dollars go as far as possible to create jobs, secure our supply chains, and bolster manufacturing in Minnesota,” said U.S. Secretary of Commerce Gina Raimondo. “This proposed investment in Polar will crowd in private capital, which will help make Polar a U.S.-based, independent foundry. They will be able to expand their customer base and create a stable domestic supply of critical chips, made in America’s heartland.”
“When President Biden signed the CHIPS and Science Act, he put a stake in the ground about the importance of semiconductor manufacturing in the United States,” said Assistant to the President for Science and Technology and Director of the White House Office of Science and Technology Policy Arati Prabhakar. “This is where the President’s leadership changes communities and changes lives. This proposed federal investment will catalyze $525 million from private companies and the state of Minnesota to create a healthy supply of made-in-Minnesota semiconductors that are essential to producing cars, electrical grids, defense systems, and more.”
“The future of the semiconductor industry is being built right here in the United States, and Polar will be part of that innovation boom. Their high-voltage technology has critical customer end uses across the aerospace, automotive, and defense sectors, and this proposed investment would help them introduce new capabilities to manufacture the next generation of semiconductors,” said Under Secretary of Commerce for Standards and Technology and National Institute of Standards and Technology Director Laurie E. Locascio.
“If we want our country to continue leading the global economy, we must stay on the cutting edge of manufacturing. This landmark investment in Polar Semiconductor’s Bloomington facility will be a game changer for domestic semiconductor manufacturing,” said Senator Amy Klobuchar. “I’m proud to have worked with Polar Semiconductor to secure the resources needed to ensure Minnesota continues to be a leader in advanced manufacturing for decades to come.”
Governor Tim Walz said, “As a top state for innovation, education, and workforce training, Minnesota has an established reputation as a leader in the growing high-tech economy. We have been consistent and creative in our support for companies like Polar that want to establish and grow their businesses here in Minnesota. We’re grateful to the Commerce Department for its commitment to Minnesota’s future and its partnership with our state.”
The $75 million state award is through the Minnesota Forward Fund, a new DEED program Gov. Walz signed into law last year to invest $400 million in business growth and attract new companies to Minnesota. It also provides matching funds for companies seeking federal resources like CHIPS Act funding. This is the Minnesota Forward Fund’s first award.
“The Minnesota Forward Fund is one of the ways the Walz-Flanagan Administration is supporting innovative companies like Polar Semiconductor that are helping build Minnesota’s cutting-edge economy,” said DEED Commissioner Matt Varilek. “The number of semiconductor companies in Minnesota is growing, and they’re creating hundreds of new, high-paying jobs every year. I appreciate the Commerce Department’s support as we make this innovative industry even stronger.”
Polar Semiconductor is a leader of the Minnesota CHIPS Coalition, formed by the GREATER Minneapolis–Saint Paul Partnership, the economic development partnership for the 15-county region, in late 2022 after the passage of the federal CHIPS and Science Act. Composed of more than 70 organizations, including manufacturers, supply-chain partners, education and training providers, labor organizations, and state and local governments, the coalition is determined to reinvigorate the region’s legacy in technology and establish the Midwest’s semiconductor industry as a national leader.
“As a key leader in the Minnesota CHIPS Coalition, Polar Semiconductor is accelerating the growth of Minnesota’s existing semiconductor and microelectronics industry with their investment in Bloomington,” said Peter Frosch, President and CEO of the GREATER MSP Partnership. “Together with Polar and more than 70 organizations across industry, government, academia, and community, we have a shared ambition to double the size of the semiconductor and microelectronics industry in Minnesota by adding 10,000 more great jobs. The State of Minnesota’s $250 million match funds for CHIPS, along with federal grants, makes us ready to scale the industry here in Minnesota.”
Polar is leading the Minnesota CHIPS Coalition Workforce Partnership, in collaboration with semiconductor ecosystem companies, educational institutions, employment and training organizations, the Governor’s Workforce Development Board (GWDB), and DEED to develop the high-tech manufacturing workforce of the next generation.
Educational institution partners include the University of Minnesota, University of St. Thomas, Minnesota State College and University System, private technical colleges, and several high school systems in the state. The workforce partnership is already creating impact through training, upskilling, and apprenticeship programs, and will continue to build on its successful collaborative model, partially supported by investments from the State and CHIPS funding.
$1.6 million of Polar’s CHIPS award will be allocated towards its workforce development efforts. Additionally, the workforce partnership expects to leverage preeminent nationwide programs, for example SCALE (Indiana-based DoD program), to boost and supplement local efforts.
“Bloomington has always been a place where innovation thrives. Polar Semiconductor’s significant private investment in expanding its facilities, with potential direct funding from the CHIPS and Science Act and a substantial investment by the State of Minnesota, will boost our local economy and will contribute to the growth and vibrancy of semiconductor manufacturing in Bloomington,” said Bloomington Mayor Tim Busse. “We’re excited to see the tangible benefits of these investments right here in our city, bringing jobs and new opportunities for our workforce and community.”
Original – Polar Semiconductor
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The Semiconductor Industry Association (SIA), in partnership with the Boston Consulting Group (BCG), released a report on the global chip supply chain that projects the United States will triple its domestic semiconductor manufacturing capacity from 2022—when the CHIPS and Science Act (CHIPS) was enacted—to 2032. The projected 203% growth is the largest projected percent increase in the world over that time.
The study, titled “Emerging Resilience in the Semiconductor Supply Chain,” also projects the U.S. will grow its share of advanced logic (below 10nm) manufacturing to 28% of global capacity by 2032, up from 0% in 2022. Additionally, America is projected to capture over one-quarter (28%) of total global capital expenditures (capex) from 2024-2032, ranking second only to Taiwan (31%). In the absence of the CHIPS Act, the U.S. would have captured only 9% of global capex by 2032, according to the report.
While the report finds investments from the industry—facilitated by CHIPS incentives—are on track to reinvigorate semiconductor manufacturing in America and reinforce U.S. chip supply chains, it also identifies policy actions that will further strengthen supply chains, support R&D and chip design, grow the semiconductor workforce, and ensure CHIPS delivers maximum benefits to America’s economic and national security.
The report also analyzes the efforts underway in other countries to incentivize chip production and innovation and the criticality of ensuring chip companies have open access to global customers and suppliers, among other topics.
“Effective policies, such as the CHIPS and Science Act, are spurring more investments in the U.S. semiconductor industry. These investments will help America grow its share of global semiconductor production and innovation, furthering economic growth and technological competitiveness,” said Rich Templeton, Chairman of the Board at Texas Instruments and SIA board chair. “Continued and expanded government-industry collaboration will help ensure we build on this momentum and continue our next steps forward.”
Other key report findings:
- America’s world-leading 203% projected increase in fab capacity from 2022 to 2032 stands in stark contrast to its modest 11% increase from the previous decade (2012-2022), which ranked last among all major chip-producing regions, according to the SIA/BCG report.
- The U.S. share of the world’s chip manufacturing capacity will increase from 10% in 2022—when the CHIPS and Science Act was enacted—to 14% by 2032, marking the first time in decades the U.S. has grown its domestic chip manufacturing footprint relative to the rest of the world. In the absence of CHIPS enactment, the U.S. share would have slipped further to 8% by 2032, according to the report.
- The U.S. continues to lead the world in its overall contribution to the global value chain, with strong leadership positions in high value-added areas of semiconductor technology, including chip design, electronic design automation (EDA), and semiconductor manufacturing equipment.
The report also finds industrial policies have the potential to create additional bottlenecks that increase supply chain risk. Certain segments of the semiconductor supply chain are at risk if incentive programs and large-scale industrial policies lead to non-market-based investment, which can result in overconcentration or oversupply. Government incentives should focus on enabling targeted, distributed, market-based investments.
Further, the study highlights the ways in which governments and companies are taking concerted action to increase resilience. The U.S. CHIPS Act committed $39 billion in incentives for semiconductor manufacturing, plus a separate advanced manufacturing investment tax credit. The European Union unveiled the European CHIPS Act, China initiated the third phase of its Integrated Circuit (IC) Industry Investment Fund, and various other incentive programs have emerged in Taiwan, Korea, Japan, India, and around the world. In parallel, companies have made significant investments, in both established and new regions. The report projects around $2.3 trillion in capex in 2024-2032, compared to $720 billion in the decade prior to enactment of the CHIPS Act (2013-2022).
Despite the progress made to strengthen U.S.-based semiconductor manufacturing, additional government policy actions are needed to help ensure America stays on track to address lingering supply chain vulnerabilities and grow its share of fabrication capacity, while also increasing its strength in areas such as advanced logic, design, EDA, and equipment in the face of growing global competition.
“The CHIPS and Science Act has put America on course to significantly strengthen domestic semiconductor production and R&D, but more work is needed to finish the job,” said John Neuffer, SIA president and CEO. “We look forward to working with government leaders to advance policies that broaden the STEM talent pipeline, invest in scientific research, promote free trade and access to global markets, and expand and extend critical CHIPS incentives.”
The CHIPS Act’s manufacturing incentives have sparked substantial announced investments in the U.S. In fact, companies in the semiconductor ecosystem have announced more than 80 new projects across 25 U.S. states—totaling nearly $450 billion in private investments—since the CHIPS Act was introduced. These announced projects will create more than 56,000 jobs in the semiconductor ecosystem and support hundreds of thousands of additional U.S. jobs throughout the U.S. economy.
Original – Semiconductor Industry Association
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Coherent Corp. announced that it secured $15 million in funding from the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act of 2022 that provided the Department of Defense (DoD) with $2 billion to strengthen and revitalize the U.S. semiconductor supply chain.
One of the key objectives of the CHIPS program is to nurture ecosystems that reduce risk, incentivizing large-scale private investment in production, breakthrough technologies, and workers. To that end, the DoD, through the Naval Surface Warfare Center Crane Division and the National Security Technology Accelerator, established eight Microelectronics Commons regional innovation hubs in September, including the Commercial Leap Ahead for Wide-Bandgap Semiconductors (CLAWS) Hub based in North Carolina and led by NC State University.
As a member of the CLAWS Hub, Coherent will receive $15 million to accelerate the commercialization of next-generation wide- and ultrawide-bandgap semiconductors, namely, silicon carbide and single-crystal diamond, respectively.
“We are excited to be recipients of funding from the CHIPS Act, delighted to be part of the CLAWS Hub, and proud to help the U.S. establish a strategic, long-term leadership position in these critical next-generation semiconductor technologies,” said Sohail Khan, Executive Vice President, Wide-Bandgap Electronics.
“Wide- and ultrawide-bandgap semiconductors enable the electrification of transportation, including road vehicles, high-speed trains, and mobile industrial machinery. They also enable smart power grids to efficiently respond to fluctuations in energy demands by regulating the delivery of electricity from conventional and renewable sources to distribution networks, as well as to and from utility-scale power storage and microgrids.”
In addition to DoD requirements for high-voltage, high-power applications and systems including hybrid electric vehicles (HEVs), more electric aircraft (MEA) components, directed energy, Navy vessel power systems, and all-electric ships, silicon carbide power electronics are increasingly recognized for their potential to greatly improve the energy efficiency of artificial intelligence (AI) data centers and traditional hyperscale data centers, where power consumption is growing rapidly due to the exploding demand for data- and compute-intensive workloads from AI, cryptocurrency mining, and blockchain applications.
Single-crystal diamond promises to exceed the performance of silicon carbide and greatly expand the applications universe with quantum computing, quantum encryption, and quantum sensing.
Original – Coherent
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The U.S. Department of Commerce announced $1.5 billion in planned direct funding for GlobalFoundries (GF) as part of the U.S. CHIPS and Science Act. This investment will enable GF to expand and create new manufacturing capacity and capabilities to securely produce more essential chips for automotive, IoT, aerospace, defense, and other vital markets.
New York-headquartered GF, celebrating its 15th year of operations, is the only U.S.-based pure play foundry with a global manufacturing footprint including facilities in the U.S., Europe, and Singapore. GF is the first semiconductor pure play foundry to receive a major award (over $1.5 billion) from the CHIPS and Science Act, designed to strengthen American semiconductor manufacturing, supply chains and national security. The proposed funding will support three GF projects:
- Expansion of GF’s existing Malta, NY, fab by adding critical technologies already in production in GF’s Singapore and Germany facilities geared towards enabling the U.S. auto industry. As vehicles transition from mechanical to electronic systems, the number of semiconductor chips in each car or truck continues to soar. This expansion is key to ensuring supply chain resilience for the growing demand and to delivering for GF’s automotive customers including General Motors. This will continue to diversify GF’s flagship Malta fab into new technologies and end markets.
- Construction of a new state-of-art fab on the Malta campus to meet expected customer demand for U.S.-made essential chips across a broad range of markets and applications including automotive, aerospace, defense and AI. The new fab, which has already been granted some necessary permitting, will leverage the site’s existing infrastructure and ecosystem, enabling a fast and efficient path from construction to production. The semiconductor market is expected to double over the next decade, and GF’s new fab will be uniquely positioned to capture the feature-rich mature, essential chip segment which is expected to continue to represent more than 60% of the semiconductor market. Construction of this new fab combined with expansion of GF’s existing site is expected to triple the existing capacity of the Malta campus over the next 10+ years. These two projects are expected to increase wafer production to 1 million per year once all phases are complete.
- Modernization of GF’s longest continuously operated fab and the nation’s first and largest Trusted 200mm facility in Essex Junction, Vermont. The project will upgrade existing facilities, expand capacity as well as create the first U.S. facility capable of high-volume manufacturing of next-generation gallium nitride (GaN) semiconductors for use in electric vehicles, power grids, data centers, 5G and 6G smartphones and other critical technologies.
Based on market requirements and demand, GF plans to invest more than $12 billion over the next 10 plus years across its two U.S. sites through public-private partnerships with support from the federal and state governments as well as from its ecosystem partners, including key strategic customers.
In support of the two Malta, New York projects, Governor Hochul today announced $575 million in planned direct funding for New York State Green CHIPS. Also announced was $15 million in planned funding for NYS Workforce Development activities for GlobalFoundries as well as $30 million in planned funding for NYS Infrastructure upgrades and Energy incentives provided by the New York Power Authority (NYPA).
Combined, these investments are expected to create over 1,500 manufacturing jobs and about 9,000 construction jobs over the life of these projects.
“GF is proud to announce this proposed funding from the Department of Commerce and New York State and appreciates the collaboration of the CHIPS Office and the Empire State Development Corporation throughout this process. These proposed investments, along with the investment tax credit (ITC) for semiconductor manufacturing, are central to the next chapter of the GlobalFoundries story and our industry. They will also play an important role in making the U.S. semiconductor ecosystem more globally competitive and resilient and cements the New York Capital Region as a global semiconductor hub,” said Dr. Thomas Caulfield, president and CEO of GF.
“With new onshore capacity and technology on the horizon, as an industry we now need to turn our attention to increasing the demand for U.S.-made chips, and to growing our talented U.S. semiconductor workforce.”
“Semiconductors are in everything from our cellphones, to refrigerators, to cars, and our most advanced weapons systems, and access to them carries important economic and national security implications. It was the shortages of semiconductors during the COVID-19 pandemic that raised prices for consumers and led to the shutdown of automobile manufacturing sites across the country,” said Secretary of Commerce Gina Raimondo. “Thanks to the CHIPS and Science Act, we’re working to onshore these critical technologies in order to bolster the supply of domestic chips that are essential to manufacturing cars, electronics, and national defense systems in New York, Vermont, and states across the country.”
“I have long said my CHIPS & Science Law would deliver big for New York, and I meant big with a capital ‘B.’ I am proud to announce GlobalFoundries has reached a preliminary agreement for the largest award thus far from the CHIPS program I created for $1.5 billion in grant funding. This will triple production capacity of GlobalFoundries’ already massive campus in Saratoga County, spur billions in public-private investment, and help bring thousands of new good-paying manufacturing and union construction jobs to the Capital Region,” said Senator Schumer.
“When I wrote the CHIPS & Science Law, I made sure there was funding especially for the feature-rich, legacy chips that GlobalFoundries produces in Malta and that are essential for America’s auto industry and national defense. We all remember the days of the pandemic when chip shortages sky rocketed car prices and created supply chain issues leading to months-long wait times for cars and electronics, and investments like this are how we can help prevent that from happening again. Ever since GlobalFoundries’ first Fab 8 broke ground 15 years ago, I knew how significant the company would be for the Capital Region and Upstate NY. Today, the plans for their second chip facility and thousands of new good-paying jobs move forward thanks to the CHIPS & Science Law I fought hard to create.”
“New York State is becoming the best place on earth to build a business,” said Governor Hochul. “Thanks to our pro-business policies, commitment to innovation and best-in-the-nation workforce, green jobs and high-tech manufacturers are flocking to the Empire State. This $11 billion investment from GlobalFoundries is a game changer, and with the partnership of the Biden administration, New York’s congressional delegation, and all of our local stakeholders, the best is yet to come.”
To attract and cultivate a pipeline of semiconductor talent that will be needed in New York and Vermont, GF is creating and investing in numerous initiatives. The company recently announced a new student loan repayment program to help current employees and new recruits pay down student loan debt. The new benefit program is part of the company’s multi-million-dollar investment to strengthen the semiconductor talent workforce by helping to ease the financial burden of higher education and training of the company’s present and future employees.
GF is also partnering with a broad range of universities and community colleges nationwide to help build a diverse workforce and semiconductor talent pipeline. As part of receiving CHIPS and Science Act funding, 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.
All of GF’s design and construction plans for its expansions and modernizations in New York and Vermont will reflect GF’s ongoing commitment to sustainable operations and comply with the company’s sustainability goals.
Customers, government officials and academia celebrate the news from the U.S. Department of Commerce and GF:
“We are pleased that GlobalFoundries will be receiving a $1.5 billion investment from the U.S. CHIPS and Science Act,” said Dr. Lisa Su, Chair and CEO of AMD. “GlobalFoundries is a strategic supplier and key enabler of AMD’s high-performance computing products. The planned investment demonstrates the commitment of the U.S. government to strengthen the domestic chip supply chain for economic growth and ensure the long-term competitiveness of the U.S. semiconductor ecosystem.”
“Semiconductors are critical to today’s vehicles,” said General Motors President Mark Reuss. “GlobalFoundries’ investment in New York both ensures a robust supply of semiconductors in the U.S. to help GM meet demand and supports U.S. leadership in automotive innovation.”
“Lockheed Martin is proud of our strategic partnership with GlobalFoundries to help increase access to domestically produced microelectronics – a true national security imperative,” said Jim Taiclet, chairman, president and CEO of Lockheed Martin. “The Department of Commerce’s announcement led by Secretary Raimondo will enable GlobalFoundries to continue providing essential technology to further strengthen Lockheed Martin’s secure and robust global supply chain. We look forward to the results of this announcement as part of our commitment to delivering cutting-edge 21st Century Security capabilities that advance deterrence and keep our customers ahead of emerging threats.”
“Qualcomm welcomes today’s announcement from the U.S. Department of Commerce CHIPS office regarding funding for GlobalFoundries expansion of their U.S. chip making operations. GlobalFoundries’ commitment to providing additional chip production capacity that allows us to continue pushing the boundaries of the innovation for 5G, Automotive and IoT applications. We are pleased to partner with a company that shares our vision for a more resilient global supply chain for chip production,” said Dr. Roawen Chen, Chief Supply Chain and Operations Officer, Qualcomm Technologies, Inc.
“GlobalFoundries has been a national leader in semiconductor and chips innovation, putting Vermont at the forefront of this emerging technology. This is a well-deserved recognition of GlobalFoundries’ commitment to bolstering the on-shore growth of U.S.-made chips,” said Sen. Peter Welch. “This investment, made possible by the CHIPS and Science Act and the White House and Secretary Raimondo’s commitment to competitiveness and security, will create jobs while making our supply chains more resilient. Even more impressive, this new site will see its commitment to sustainability through with a plan to use carbon-free neutral energy practices —leading in innovation and in action.”
“This is huge news for Vermont and the region,” said Governor Phil Scott. “The CHIPS Act funding will help encourage innovation and expansion of this vital sector in our state and across the country. I’m proud of the work my team has done with GF and others to assist and I want to thank the Biden Administration and our congressional delegation for their continued partnership.”
“Today’s announcement is nothing short of a gamechanger for Saratoga County and the greater Capital Region. It is proof positive that our Investing in America agenda not only bolsters national security and global economic competitiveness, it can create thousands of good paying jobs right here at home. I look forward to working closely with GlobalFoundries and local, state and federal partners to make these historic plans a reality,” said Congressman Paul Tonko.
“We extend our congratulations to GlobalFoundries for achieving this important milestone that will ignite regional economic growth while reinforcing the vital collaboration between Hudson Valley Community College and GF. Since 2021, through a first-of-its kind U.S. Registered Apprenticeship program, HVCC has been assisting GF in expanding its technical workforce by providing top-notch education and training to apprentices. Additional funding from CHIPS will enable us to expand our role as a critical partner in developing a highly skilled workforce for the semiconductor industry through our partnership with GlobalFoundries,” said Dr. Roger Ramsammy, president of Hudson Valley Community College.
“We congratulate GlobalFoundries on this crucial milestone. Federal investment in GF’s New York manufacturing capabilities will spur regional economic development and build upon the company’s longstanding and highly positive impact on the Capital region, and its investments here. This funding will further strengthen the vital partnership between SUNY and GF, allowing more SUNY students to gain experiential learning through apprenticeships and internships, and making New York the national model for education and workforce development in the semiconductor industry,”said State University of New York Chancellor John B. King, Jr.
“The first and largest 200mm semiconductor manufacturing facility of its kind in the U.S., GF’s Vermont fab is a cornerstone of the state’s economy and a key partner for the University of Vermont’s work as a national research university. Through collaborative programs with UVM and other institutions in Vermont, it is a place where so many young people in our region find their future. CHIPS funding will help ensure the commercial viability of this site for years to come and enable GF and UVM to build upon our recent EDA Tech Hub designation to create internships, apprenticeships, workforce development programs, and advanced research initiatives in the Green Mountain State. We applaud this federal investment in GF and the entire Vermont community,” said Kirk Dombrowski, Vice President for Research and Economic Development at UVM.
Original – GlobalFoundries
