GlobalFoundries in $1.5 Billion CHIPS Act Funding Award

Cleary Gottlieb is representing GlobalFoundries Inc. (GlobalFoundries) in direct funding agreements for an award of up to $1.5 billion from the U.S. Department of Commerce through the CHIPS and Science Act.

On November 20, 2024, GlobalFoundries and the U.S. Department of Commerce announced the signing of the final award of up to $1.5 billion in direct funding to GlobalFoundries, which follows the previously signed preliminary memorandum of terms announced in February 2024.

The award will enable GlobalFoundries to expand its essential chip manufacturing and technology development in the U.S., strengthening supply chains and supporting customers across a range of vital end-markets including automotive, smart mobile devices, IoT, datacenters, and aerospace and defense. GlobalFoundries’ award will support three projects: expansion of its existing Malta, New York fab by adding critical technologies already in production at its Singapore and Germany facilities; modernization and upgrading of its fab in Essex Junction, Vermont to expand production capacity; and, in alignment with market conditions and customer demand, construction of a new state-of-art fab on the Malta, New York campus to meet expected demand for U.S.-made essential chips.

GlobalFoundries is one of the world’s leading semiconductor manufacturers, delivering feature-rich process technology solutions that provide leadership performance in pervasive high growth markets.

For more information, please see the press release.