The United States will allocate $1.5 billion for a computer chip plant

He Biden administration will allocate 1.5 billion dollars to build a new factory computer chips in the state of New YorkIn an effort to increase the country’s ability to mass-produce modern consumer and military electronics brains.

The subsidy, officially introduced this Monday, February 19, is the third subsidy announced within the framework Chips and Science Lawa program of 52 billion dollars that he President Biden signed in 2022 in hopes of boosting American manufacturing semiconductorWhich are mostly manufactured in foreign countries.

This money will help the semiconductor giant GlobalFoundries To build a large-scale manufacturing facility, known as “Fab“, at its headquarters Malta, New YorkTo create advanced chips which are not currently manufactured usa, The grant will also help the company expand to a second plant maltIs known fab 8and modernizing one third Burlington, Vermont,

Decade-long decline in manufacturing sector chips In usaAs companies seek lower costs abroad, this has increased concerns Washington Through the domestic supply chain of small electrical components that form the basis of modern life.

“Traditional semiconductors, known as legacy chips, are used in almost all modern electronic devices”, from phones and computers to refrigerators and washing machines. it is expected that more advanced chips Fuel the next generation of weapon systems and the next generation of artificial intelligence software.

usa pioneered this technology decades ago, but has since lagged behind in production of both types chipseven if the capabilities China Has been shot. Although 1990 American plants manufactured it 37% of chips Its production quota in the world has been reduced to 12%,

Commerce Secretary, Gina Raimondosaid in a briefing on Sunday, February 18 that the company’s “once-in-a-generation investment” chip law It was designed to address the country’s overdependence on foreign manufacturers and ensure its own production. chips Critical to American industry and defense.

foundership “Will play a vital role in making the US semiconductor ecosystem more competitive and resilient globally”announced in a statement thomas caulfieldExecutive Director of GlobalFoundries, He said the industry should focus its attention “Focus on growing demand for American-made chips and growing our talented American workforce in the semiconductor sector”,

subsidy to GlobalFoundries This is the biggest announcement made within the ambit of law. Since December, the administration has said it will grant 35 million dollars To BAE SystemsA defense contractor that makes chips used in fighter planes, and 162 million dollars To microchip technologya company that manufactures memory chips And other “microcontrollers” are widely used in manufacturing factories. colorado And oregon, More awards will be announced in the coming weeks.

global shortage of chips This caused car prices to rise and factories to close during the cholera epidemic. American officials He also expressed fears about broader risks to the US supply chain due to the threats China to invade taiwanthe island where there are many people chips Most advanced in the world.

chips Current devices are manufactured in tightly controlled “clean rooms”, printing circuits on wafers. silicone Spectacular and of record size, a very sophisticated process that relies on some of the most advanced and expensive machines in the world. largest manufacturer of chips Of the World, Taiwan Semiconductor Manufacturing Company one of two TSMCannounced that last year he had spent 30 billion dollars in investment of capital,

GlobalFoundrieswhose designation “Trust Foundry” From pentagon Allows you to create high-level hardware for the military, supplied chips used in routers Internetradio towers and satellites, as well as in James Webb Space Telescope And this International Space Station, Its customers also include automobile manufacturers. General Motorsdefense contractor Lockheed Martin and electronics company Qualcomm,

Of the five largest manufacturers of chips Of the World, GlobalFoundries is the only one located in usa, the other four are inside China, South Korea And taiwan,

GlobalFoundries applied for subsidy from chip law last year, claiming that aid was necessary for the company “Continue to grow our manufacturing footprint in the United States”, The company will also benefit from the law’s tax credits for investments. advanced manufacturingHe Congressional Budget Office Nearly $24 billion is projected over the next decade.

Federally supported expansion will help campus GlobalFoundries in the north of the state New YorkNorth of albanyTo Its capacity will triple in the next decadeAccording to administration officials, up to one million wafers per year. Will also change the features of the grant Burlington The first in the country to make new generation chips electric vehicles and electrical networks.

For its part, the modernization of Fab 8 Will expand manufacturing capacity car chips use by General Motorssigned an agreement last year with GlobalFoundries Which provided the automaker with an exclusive supply of chips. A car contains dozens of specialized chips that control a wide variety of functions, From airbags, brakes and reversing cameras to electric motors and electric seats,

In addition to the $1.5 billion grant, Biden administration will make available to GlobalFoundries $1.6 billion loan for construction and improvements. Including grants and private financing, the total cost of the three projects is expected to be approximately $12.5 billion.

who are responsible for Administration He has not given a time frame for construction. The money has been awarded as part of a preliminary agreement that will require a period of due diligence before it is officially awarded, he said. It will be paid over time based on project achievements rather than a single payment.

The projects are expected to create about 1,500 manufacturing jobs Another 9,000 are under construction, many of which will be centralized around the new factory, according to officials.

Chip makers have complained that the cost of building a new factory is the same as before TSMC In Arizona– are higher in usa what in Asia, thereby increasing the need for public subsidies. They have also complained about the lack of qualified American workers to perform this delicate work.

Administration has announced that it will allocate Nearly $10 million to support workforce development measures Of GlobalFoundriesWhich includes an apprenticeship program to teach trainees how to work in a factory without the need for semiconductor experience.

“This shows that our best days are not over.”the majority leader in the House of Representatives said at a briefing on Sunday. management committee, Charles E. Schumer, New York DemocratWhose state will benefit from this fund. “We can compete, we can understand new changes and adapt to them quickly”,

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