The US government has finalised a grant agreement with chipmaker GlobalFoundries (GF) to support its investment in semiconductor manufacturing, AFP reported.
The binding contract provides up to $1.5 billion in direct funding and is under the Chip and Science Act (CSA), a package of incentives to encourage semiconductor research and manufacturing in the US.
The US produces only about 10% of the world's chip supply.
"By investing in GF's domestic manufacturing capacity, we are helping to ensure a steady domestic supply of chips found in everything from home electronics to advanced weapons systems," said U.S. Commerce Secretary Gina Raimondo.
The final award comes after a tentative agreement announced in February and means funds can start flowing in when milestones are reached.
The announcement comes about two months before the inauguration of President-elect Donald Trump, who has previously criticized the CSA.
The award is intended to support a broader investment of about $13 billion by GF over the next 10 years at its manufacturing sites in New York and Vermont, the Commerce Department said.
"This will improve U.S. competitiveness in current-generation semiconductor manufacturing," the department added.
The sites produce semiconductor technologies in key areas such as automotive, aerospace and defence, and communications.
"Currently, there are only four companies outside China that provide foundry capabilities on the scale of GF," the commerce ministry said.
GF is the only one of those firms based in the United States.
The company's investment is expected to create about 1,000 manufacturing jobs at the two sites. | BGNES
