GlobalFoundries nets $1.5B from CHIPS Act despite sanctions violation fine

Semiconductor maker GlobalFoundries, recently fined $500,000 for sanctions violations involving China, has been awarded up to $1.5 billion in funding under the US government's CHIPS and Science Act.

The multinational semiconductor contract manufacturer said the money would go towards expanding its chipmaking capacity and technology development in the US to help support customers across a range of markets such as automotive, mobile devices, IoT, datacenters, and aerospace and defense. 

"GF's essential chips are at the core of US economic, supply chain and national security," claimed GlobalFoundries president and CEO Thomas Caulfield. "We greatly appreciate the support and funding from both the US Government and the states of New York and Vermont, which we will use to ensure our customers have the American-made chips they need to succeed and win."

The Department of Commerce said it will disburse the funds based on GlobalFoundries' completion of certain project milestones. These include construction, production, and commercial targets, which will be monitored through financial reports and other metrics.

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