The Biden administration announces that the government will contribute $1.5 billion to the computer chip manufacturer GlobalFoundries to boost its domestic production in New York and Vermont.
The government plans to give the computer chip manufacturer GlobalFoundries $1.5 billion to increase its domestic production in New York and Vermont, the Biden administration announced on Monday.
With this news, a semiconductor manufacturer receives direct financial support for the third time under the 2022 CHIPS and Science Act. The measure allows the government to spend more than $52 billion on research and development as well as reviving computer chip production in the US.
The computer chips that GlobalFoundries will produce in these new facilities are crucial, Gina Raimondo, the secretary of commerce, stated during a press conference. “They power electric vehicles and high-tech military equipment.” They guarantee that smartphones have the newest features and give Americans access to quicker Internet.
Along with the direct funding, the government would also lend up to $1.6 billion; the anticipated total of public and private investment is approximately $12.5 billion.
As part of a strategic agreement with General Motors, GlobalFoundries plans to utilize the funds to boost production at its current plant in Malta, increase the cost of building a new sophisticated computer chip factory in Malta, New York, and rejuvenate its plant in Burlington.
Over the following ten years, the projects are anticipated to generate 9,000 construction jobs and 1,500 manufacturing jobs. The agreement stipulates that $10 million will go toward worker training and that construction workers will now be eligible for GlobalFoundries’ $1,000 yearly subsidy for child care and child care support services.
The law allowing the funding of computer chip manufacturing was drafted by Senate Majority Leader Charles Schumer, D-N.Y., who said that technology was just as important to the American economy and national security as food. He stated that disruptions might potentially affect the United States, similar to what happened during the coronavirus pandemic when auto companies were unable to produce enough chips to continue manufacturing cars.
Schumer declared, “The Democrats will stop at nothing to prevent other nations—China, Russia, and others—from gaining an economic edge over us all.
The state of the American economy has been a huge worry because there is a significant election this year that will determine who will control Congress and the White House. Republicans in Congress have emphasized that the 2022 peak inflation rates have reduced family purchasing power, which is an urgent pressure point that has harmed President Joe Biden’s standing.
However, Democrats have emphasized their attempts to lower inflation as well as the long-term expenditures, including infrastructure and computer chip manufacturing, that they believe will spur future prosperity.
There was some bipartisan support for these efforts, according to Schumer, who also noted that they demonstrated the Democrats’ focus on making long-term investments in the nation.
Schumer remarked, “People want to see that we have a future.” “It leaves a profound impression on Americans.”
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