07.19.21

SCHUMER ANNOUNCES: GLOBALFOUNDRIES TO BUILD SECOND CHIP FAB & CREATE THOUSANDS OF NEW JOBS IN MALTA; AFTER PASSING HISTORIC FEDERAL CHIP INVESTMENT THROUGH SENATE, SCHUMER BRINGS COMMERCE SECRETARY TO MALTA TO ANNOUNCE NEW FAB, CRITICAL TO SUPPLYING CHIPS FOR EVERY U.S. INDUSTRY & BOOM TO CAPITAL REGION ECONOMY

After Securing Senate Passage of Historic Bill For Domestic Semiconductor Industry – Including $52B Investment, Schumer Announces Expansion Of GlobalFoundries Semiconductor Presence In Capital Region With New Fab & Thousands Of New Jobs 

GlobalFoundries Plans To Build Second Semiconductor Fab In Malta; New Facility To Be Bigger Than Existing Malta Fab & Create Thousands of Good-Paying Construction And Permanent Jobs  

Schumer: GlobalFoundries Secures Upstate NY’s Role As Semiconductor Manufacturing Epicenter

Following more than a year of major advocacy to expand domestic semiconductor manufacturing, research and development (R&D), and jobs and make historic investments in overall federal R&D and innovation, which eventually culminated in Senate passage of the U.S. Competition and Innovation Act that will invest $52 billion in the domestic semiconductor industry, U.S. Senate Majority Leader Charles E. Schumer brought U.S. Secretary of Commerce Gina Raimondo to Malta today to announce that GlobalFoundries plans to build a second chip fab in Malta, New York. The planned fab is set to be larger than the mammoth Fab 8, already in operation, and focus primarily on auto and military chip production, creating thousands of construction and permanent jobs, on top of the 3,000 employees that GlobalFoundries already employs in Malta, and helping to expand domestic supply chains of critical chip technology. The company has previously announced that they are committed to working out a Project Labor Agreement with local trade unions on future construction, just as they did when Fab 8 was built, to ensure high-pay, high-quality construction jobs are created by this investment.

“At the Fab 8 groundbreaking 12 years ago, I knew how significant it would be for the Capital Region, however, few understood just how transformational it would be: thousands of construction jobs, 3,000 permanent workers, a booming housing and retail economy in the region, and really placing Upstate New York on the global semiconductor industry map,” said Majority Leader Schumer. “Today, I say: let the sequel be not equal, but even better!”

“Just about every phase of modern life involves a device with a semiconductor chip, and we are in the midst of a worldwide chip shortage that is hitting industries across the economy. GlobalFoundries’ massive Fab 8 has maxed out its capacity to produce more chips,” Schumer continued. “That’s why it’s vital for GlobalFoundries to build a second manufacturing fab and precisely why I’ve fought tooth and nail to secure bipartisan support for the U.S. Innovation and Competitiveness Act. This bill provides an historic $52 billion for the domestic semiconductor industry, meant to supercharge domestic manufacturing investment by companies like GlobalFoundries. It is a win for the company, for the Capital Region’s workforce, for the local and national economies, and for our national security.”

"GlobalFoundries is taking bold action to address the U.S. semiconductor supply chain shortage. Today, we took another major step and announced that we will construct a new fab in Malta, New York," said GlobalFoundries CEO Tom Caulfield. "With strong partnership and incredible support from Senator Schumer, the federal and New York State governments, and our customers we will address the demand created by humankind's need to grow, evolve and connect in this digital age."

“Semiconductor chips touch every part of our economy and are vital to both the security of our nation and U.S. competitiveness,” said Secretary Raimondo. “The impacts of a short-term chip shortage have underscored the need for a long-term strategy to ensure our nation has a more resilient semiconductor supply chain, one that accelerates U.S. technology leadership and prevents future chip supply constraints. The Biden-Harris Administration is committed to working with the private sector to address this challenge, strengthen supply chains, and shore up domestic semiconductor manufacturing. I want to thank Senator Schumer for leading the fight to get the U.S. Competition and Innovation Act passed and applaud the Senators from both parties who came together to pass a critical bipartisan bill that ensures we have the investments we need to continue America’s legacy as a global leader in innovation.”

Last month, Schumer announced Senate passage of the U.S. Competition and Innovation Act, which combined his Endless Frontier Act, other bipartisan competitiveness bills, and included $52 billion in emergency supplemental appropriations to implement the semiconductor-related manufacturing and R&D programs the senator authorized in last year’s National Defense Authorization Act as well as a program to support legacy chip production, like that of GlobalFoundries, that is essential to the auto industry, the military, and other critical industries. Schumer noted that provisions in the U.S. Competition and Innovation Act will encourage growth in the semiconductor industry in Upstate New York.

Details on the supplemental appropriations appear below:

  • $49.5 billion allocated over 5 years for a CHIPS for America Fund. Funding must be used to implement the Commerce Department semiconductor incentive and R&D programs authorized by the FY21 NDAA (Sec. 9902 & 9906). Within the fund, the following appropriations are available:
  • Incentive Program: $39 billion appropriated upfront and allocated over 5 years to implement the programs authorized in Sec. 9902. $2 billion is provided to solely focus on legacy chip production to advance the economic and national security interests of the United States.
    • $19 billion in FY22, including the $2 billion legacy chip production funding
    • $5 billion each year, FY23 through FY26
  • Commerce R&D programs: $10.5 billion appropriated upfront and allocated over 5 years to implement programs authorized in Sec. 9906, including the National Semiconductor Technology Center (NSTC), National Advanced Packaging Manufacturing Program, and other R&D programs authorized in Sec. 9906.
    • $5 billion in FY22
      • $2.5 billion for advanced packaging
      • $2 billion for NSTC
      • $500 million for other related R&D programs

For use across the advanced packaging, NSTC, and other related R&D programs, the following would be provided:

    • $2 billion in FY23
    • $1.3 billion in FY24
    • $1.1 for FY25 and FY26 
  • $2 billion for a CHIPS for America Defense Fund: Funding is appropriated up front and $400 million is allocated each year, over 5 years for the purposes of implementing programs authorized in Sec. 9903(b), providing support for R&D, testing and evaluation, workforce development, and other related activities, in coordination with the private sector, universities, and other Federal agencies to support the needs of the Department of Defense and the intelligence community.
  • $500 million for a CHIPS for America International Technology Security and Innovation Fund: Funding is appropriated upfront and $100 million each year, allocated over 5 years to the Department of State, in coordination with the U.S. Agency for International Development, the Export-Import Bank, and the U.S. International Development Finance Corporation, for the purposes of coordinating with foreign government partners to support international information and communications technology security and semiconductor supply chain activities, including supporting the development and adoption of secure and trusted telecommunications technologies, semiconductors, and other emerging technologies.

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