US Providing $1.5 Billion in Support for Computer Chip Construction

US Providing $1.5 Billion in Support for Computer Chip Construction

( – President Joe Biden’s administration announced $1.5 billion in government funding to help tech firm GlobalFoundries build more computer chips in the United States.

The funds will help GlobalFoundries increase production in the blue states of Vermont and New York. It initially announced plans to build a facility in New York in 2021. The move was described as a private-public partnership with Chuck Schumer (D-NY) leading a handful of other government officials.

This will mark the third time Biden has pledged government support for the manufacturing of microchips in the US. All three awards were administered as part of the 2022 CHIPS and Science Act. The $280 billion package was passed to expand the manufacturing of semiconductor chips in the United States. It allows $52 billion to be given directly to manufacturers.

GlobalFoundries announced plans of building state-of-the-art chips at its New York facility after receiving the funds. That will help fuel its partnership with automaker General Motors. It also said that the Vermont facility will be revitalized.

The move is expected to create just over 10,000 new jobs. The company will also use some of its government funds to subsidize childcare for employees.

There have been concerns that China’s threat to invade Taiwan could lead to a global microchip shortage. The island-nation currently manufactures the most powerful microchips in the world. It also builds about 60% of the semiconductors used across the globe, per NBC News.

Biden has said that the US will defend Taiwan if China decides to invade. The CCP has not announced official plans publicly. According to NBC News, Miin Wu, who founded chipmaker Macronix, warned that a disruption would likely cause a 20-year setback.

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