Biden, Schumer unveil $1.5B grant proposal for chip production in New York, Vermont

The White House, in conjunction with Senate Majority Leader Chuck Schumer, will announce a groundbreaking proposal on Monday, earmarking a substantial $1.5 billion grant for a semiconductor manufacturer to establish facilities in New York and Vermont. This significant investment is anticipated to fuel job creation, with projections exceeding 10,000 employment opportunities, according to Commerce Secretary Gina Raimondo and Schumer.

Highlighting the transformative impact of this initiative, Schumer emphasized the creation of enduring employment opportunities, describing it as a “once-in-a-generation investment.” The allocated funds, spanning a decade-long period and totaling $12 billion from both public and private sectors, are directed towards GlobalFoundries, a prominent player in the semiconductor landscape, with headquarters in Malta, New York.

Vice President Kamala Harris underscored the critical role of GlobalFoundries’ chips in various sectors, including automotive, telecommunications, and national defense. The domestic production of these chips is expected to enhance supply chain stability and bolster key industries reliant on foreign imports.

Schumer outlined the anticipated job creation, estimating the generation of 9,000 union construction roles and 1,500 permanent manufacturing positions over the next decade. Emphasizing the strategic significance of this investment, Raimondo detailed plans for a new plant in Malta to produce high-value chips not currently manufactured in the United States.

The grant, facilitated by the $52 billion CHIPS and Science Act, enacted in response to semiconductor shortages exacerbated by the pandemic, signifies a pivotal step towards bolstering domestic semiconductor capabilities. Schumer emphasized the imperative of reducing reliance on overseas supply chains, emphasizing the broader national significance of this endeavor.

Looking ahead, Raimondo hinted at forthcoming investment announcements, underlining the administration’s commitment to revitalizing the semiconductor industry. This initiative builds upon previous commitments, including Micron Technology’s $100 billion investment in chip production in Syracuse, New York, and IBM’s $20 billion investment in Poughkeepsie, New York, both unveiled in 2022.