Home Vermont Big federal investment in GlobalFoundries to boost region’s economy

Big federal investment in GlobalFoundries to boost region’s economy

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ESSEX JUNCTION, Vt. (WCAX) – Officials say a big federal investment in GlobalFoundries will not only expand American manufacturing but will boost the economy in our region.

Leaders of the chip manufacturer joined Biden administration officials and top leaders in New York on Monday to give more details on how the $3 billion investment will help build a new facility in New York and add critical technologies to the Malta, New York, and Essex Junction, Vermont, locations.

GlobalFoundries builds chips that go in many things, from your cellphone to military satellites. And officials with the company say this partnership will pay off for years to come.

“We are ushering in a new era of American manufacturing,” U.S. Commerce Secretary Gina Raimondo said, talking about the government’s investment of $1.5 billion in grants and $1.6 billion in loans into GlobalFoundries’ factories in Malta, New York, and Essex Junction, Vermont.

“We are seizing the future right here in the state of New York,” said Gov. Kathy Hochul, D-New York.

Hochul praised the grants and loans that will be used to build a new facility in New York and add critical technologies to the Malta and Vermont locations. The upgrades will allow for the manufacturing of next-generation technologies including gallium nitride.

“Very important for electrification, very important for power and high-speed communication applications,” said Thomas Caulfield, the president and CEO of GlobalFoundries.

Caulfield also praised Vermont and doubled down on the company’s commitment to the Essex Junction facility.

“That fab has existed for over 60 years, through different ownership changes, but it just shows the resiliency of the team and how we can continue to take existing facilities and modernize them and make them relevant to our industry,” Caulfield said.

The funding is all but certain, but Biden administration officials say GlobalFoundries must hit key milestones to get the $1.5 billion loan. Beyond that, the facility upgrades and construction is expected to be a $12 billion project.

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