The U.S. chip manufacturing company GlobalFoundries is receiving $1.5 billion from the Biden administration, representing a significant investment in the ongoing effort to ramp up domestic microchip production.
This influx of funding is the third such investment in the U.S.-based company, and will go toward manufacturing efforts on the East Coast.
According to the Chips and Science Act, the federal government can support domestic microchip manufacturing with investments of over $52 billion. This is largely due to an ongoing attempt to best rival countries–most specifically China–in the race to create advanced computer chips. GlobalFoundries will meet this goal by building a new factory in Malta, New York, while also overhauling an existing location in Burlington, Vermont.
Per AP News, the investment will theoretically create 1,500 manufacturing jobs and 9,000 construction jobs over the course of the next decade, with parts of the money going toward training and child care for new employees. In some regards, this represents a huge win; during an election year after a term in which many have criticized the Biden administration for a struggling economy, this investment is a step toward a healthier one.
AP News also points out that these investments achieved a rare touch of bipartisan support, with senate representation speaking positively about the developments. “People want to see we have a future,” said Senate Majority Leader Chuck Schumer in regards to the investments in chip manufacturing. “It makes a huge impression on the American people.”
This initiative also comes at a time during which the U.S. is actively avoiding exporting high-level chips to places like China, and initiatives to block import of last-gen tech are on the table as well. In the race to build advanced electronics and avoid COVID-era bottlenecks in manufacturing, pushing a domestic approach is a welcome evolution.
With many of the benefits of this shift slated to take place over the course of 10 or more years, it’s no wonder that representatives and the Biden administration alike are focusing on the job creation aspect. Only time will tell whether or not the U.S. is successful in subverting global manufacturing norms, preventing rival countries from reaching certain technology thresholds, and making chips and higher technology solutions available to the American public.
Jack Lloyd has a BA in Creative Writing from Forest Grove's Pacific University; he spends his writing days using his degree to pursue semicolons, freelance writing and editing, oxford commas, and enough coffee to kill a bear. His infatuation with rain is matched only by his dry sense of humor.
