GlobalFoundries was one of the first companies to be awarded funding under the CHIPS and Science Act.
TSMC and GlobalFoundries have reportedly finished negotiating their binding agreements with the US Department of Commerce regarding their CHIPS Act funding.
Citing people familiar with the matter, Bloomberg said that funding for both companies is roughly in line with the preliminary figures announced earlier in the year.
While the report noted that it was unclear when the agreements would be officially signed, in the wake of former and now President-elect Trump’s disparaging comments about the CHIPS Act in recent weeks, it’s thought that the Biden Administration will want to finalise the deals before the end of his term.
GlobalFoundries was one of the first companies to be awarded funding under the CHIPS and Science Act.
In February 2024, the Department of Commerce announced it would be awarding $1.5 billion to the chipmaker to support three projects: expanding the company’s existing Malta, New York, fab; constructing a new fab on the Malta campus for the production of chips for automotive, aerospace, defence and AI; and modernising the company’s Trusted 200mm facility in Essex Junction, Vermont, creating the first US facility capable of high-volume manufacturing of next-generation gallium nitride (GaN) semiconductors.
Two months later, TSMC was awarded $11.6 billion in CHIPS Act funding, made up of $6.6 billion in grants and an additional $5 billion in loans. The chipmaker was already constructing two plants in Arizona to produce 4nm and 3nm semiconductors but under the terms of the deal, TSMC agreed to build a third fab in the state.
