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MALTA, N.Y. (NEWS10) – The U.S. has stepped up its computer chip manufacturing efforts with a major funding announcement. A $1.5 billion grant is going towards the expansion of the GlobalFoundries chip factory in Malta.
According to experts, the world’s economy is reliant upon semiconductors, or computer chips. That’s why the federal government is focused on increased domestic production.
It’s the nation’s largest award, so far, and could make the Capital Region a global leader in the industry. The grant will assist GlobalFoundries in building a new 358,000 square foot factory in Luther Forest Technology Park. Senator Chuck Schumer helped pass the law and said it will strengthen America’s position internationally.
“In our law, we say we have to make them in the U.S. No more depending on China, Taiwan, or any other country for these things that are vital,” said Schumer. “We have to avoid that by making the chips here. GlobalFoundries will be the biggest chip maker not only in America, but one of the biggest of legacy chips in the whole world and this is the most advanced plan.”
GlobalFoundries is instrumental in many industries, like A.I., aerospace, auto, and is an essential supplier to the Department of Defense.
“They are vital for defense. We can’t have another country able to strangle our defense needs if we don’t make the chips here,” said Schumer.
It’s expected to create 9,000 construction jobs and 1,500 manufacturing jobs. The expansion, announced on Monday, has many local business owners excited about the growth prospects.
“Hopefully we’ll have 1,500 new customers, honestly. We have a ton of people coming from Global already. They get lots of bagels, lots of big orders for sandwiches, they’re fantastic. So the more the merrier honestly,” said The Twisted Bagel Company Manager Patty Ernst.
She believes it will have a positive economic impact for many local business owners.
“It’s going to be great for probably everybody, the nail salons. Jimmy’s will be great. It’s going to be great for all of us. We’re all small, pretty much, around here. There’s a couple of chains but we’re all just hard-working folk,” said Ernst.
Saratoga County Board of Supervisors Chairman Phil Barrett issued, a statement that read:
“We congratulate GlobalFoundries on their future expansion plans here in Saratoga County and wish the company continued success. Saratoga County will remain the home for innovation and technological advancement. Strengthening the chip industry in America due to geopolitical considerations has never been more important.”
The expansion will cost roughly $12 billion and the money will come from both private and public funds. In addition to the $1.5 billion federal grant, awarded under the CHIPS and Sciences Act, it will be funded with a $1.6 billion loan, $575 million in New York State Green CHIPS funding and $30 million from the New York Power Authority.
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