The Biden administration has finalized up to $1.5B in direct funding for GlobalFoundries (NASDAQ:GFS) as part of the CHIPS and Science Act.

The award follows the previously signed preliminary memorandum of terms announced in February 2024, enabling the company to expand essential chip production and technology development in the U.S.

Specifically, the funding supports expansion of GlobalFoundries’ (GFS) existing fab in Malta, New York, modernization of its Vermont facility and construction of a new state-of-art fab on its Malta, New York, campus.

GlobalFoundries’ fabs in New York and Vermont are both Trusted Foundry accredited and manufacture secure chips in partnership with the U.S. government.

The two New York-based projects are expected to triple the existing capacity of the Malta campus over the next 10-plus years, representing an investment of more than $13B.

This investment includes the $1.5B CHIPS and Science Act award, more than $550M in support from the New York State Green CHIPS Program, as well as funding and support from Vermont, GF ecosystem partners and key strategic customers, and other incentives.

GFS shares were down over 2% on Wednesday.

Last week, the Biden administration finalized its Chips Act incentive agreement with Taiwan Semiconductor Manufacturing (TSM), spurring $65B of private investment to build three facilities in Arizona.

That marked the first major Chips Act deal to be completed, while Intel (INTC), Samsung (OTCPK:SSNLF) and others are still discussing details of agreements.

The CHIPS Act provides for $39B in grants, billions more in loans and 25% tax credits to boost domestic chip manufacturing and reduce reliance on Asia. More than 20 companies are in line for the government funding.

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