The Biden administration on Monday announced a $1.5 billion award to the New York-based chipmaker GlobalFoundries, one of the first sizable grants from a government program aimed at revitalizing semiconductor manufacturing in the United States.
The award to GlobalFoundries will help the firm expand its existing facility in Malta, N.Y., enabling it to fulfill a contract with General Motors to ensure dedicated chip production for its cars.
The money will also be used to upgrade the company’s operations in Vermont, creating the first U.S. facility capable of producing a kind of chip used in electric vehicles, the power grid, and 5G and 6G smartphones.
A global chip shortage in the midst of the pandemic led to shutdowns, layoffs and furloughs at American auto manufacturing plants, slowing the U.S. economy and sending prices for used and new cars soaring.
Officials emphasized that the announcement was just a preliminary agreement and that the company would be subject to a period of due diligence, including meeting certain milestones in construction and production.
Thomas Caufield, its chief executive, expressed hopes that the government would also take steps to help boost chip demand and encourage companies to shift some production to U.S. factories.
The original article contains 1,005 words, the summary contains 198 words. Saved 80%. I’m a bot and I’m open source!
This is the best summary I could come up with:
The Biden administration on Monday announced a $1.5 billion award to the New York-based chipmaker GlobalFoundries, one of the first sizable grants from a government program aimed at revitalizing semiconductor manufacturing in the United States.
The award to GlobalFoundries will help the firm expand its existing facility in Malta, N.Y., enabling it to fulfill a contract with General Motors to ensure dedicated chip production for its cars.
The money will also be used to upgrade the company’s operations in Vermont, creating the first U.S. facility capable of producing a kind of chip used in electric vehicles, the power grid, and 5G and 6G smartphones.
A global chip shortage in the midst of the pandemic led to shutdowns, layoffs and furloughs at American auto manufacturing plants, slowing the U.S. economy and sending prices for used and new cars soaring.
Officials emphasized that the announcement was just a preliminary agreement and that the company would be subject to a period of due diligence, including meeting certain milestones in construction and production.
Thomas Caufield, its chief executive, expressed hopes that the government would also take steps to help boost chip demand and encourage companies to shift some production to U.S. factories.
The original article contains 1,005 words, the summary contains 198 words. Saved 80%. I’m a bot and I’m open source!