MALTA, N.Y. — GlobalFoundries (NASDAQ: GFS), a leading semiconductor manufacturer headquartered in Upstate New York, plans to invest a total $11.6 billion over the next 10 years to expand its Fab 8 manufacturing base in Malta, a city north of Albany in Saratoga County. The investment includes an expansion of its existing facility and the development of a new 358,000-square-foot plant.
GlobalFoundries says the investment will triple its capacity to manufacture semiconductors, with the ultimate goal of producing 1 million semiconductor wafers per year at its Malta campus at full operation. The planned enhancements will create more than 1,500 direct jobs and 9,000 indirect construction jobs over the next 10 years, according to the office of New York Gov. Kathy Hochul.
Concurrently, GlobalFoundries will receive $1.5 billion in direct funding from the U.S. Department of Commerce as part of the U.S. CHIPS and Science Act, a law ratified by U.S. President Joe Biden in Aug. 2022. The company will use the federal government funding in the Malta projects, as well as for enhancements planned at GlobalFoundries’ Fab 9 facility in Essex Junction, Vt.
Also known as computer chips, semiconductors are an essential element of nearly all electronic and computing devices, including electric vehicles (EVs), smartphones, tablets, TVs, home appliances, solar panels and gaming consoles. Semiconductors are also considered a key component to national security as the products are essential in the manufacturing and operation of aerospace equipment, data centers and modern power grids. According to GlobalFoundries, the semiconductor production market is expected to double over the next decade.
GlobalFoundries’ Malta facilities will produce semiconductors for its global clients, including for EVs manufactured by General Motors, aerospace technology for Lockheed Martin, and 5G and IoT products for Qualcomm Technologies Inc.
In support of the two Malta projects, Gov. Hochul announced $575 million in planned direct funding via the New York State Green CHIPS program. Also announced was $15 million in planned funding for New York State Workforce Development activities for GlobalFoundries, as well as $30 million in planned funding for New York State Infrastructure upgrades and energy incentives provided by the New York Power Authority.
“These proposed investments, along with the investment tax credit (ITC) for semiconductor manufacturing, are central to the next chapter of the GlobalFoundries story and our industry,” says Dr. Thomas Caulfield, president and CEO of GlobalFoundries. “They will also play an important role in making the U.S. semiconductor ecosystem more globally competitive and resilient and cements the New York Capital Region as a global semiconductor hub.”
GlobalFoundries’ stock price closed on Friday, Feb. 16 at $53.38 per share, down from $63.11 a year ago, a 15.4 percent decrease.
— John Nelson