What just happened? GlobalFoundries, the third-largest semiconductor foundry in the world, is finally receiving the funding promised by the US government through the Chips Act. The official announcement outlines the three main projects that will be supported by the grant, along with a massive, multi-year investment effort. The previously leaked decision to award GlobalFoundries $1.5 billion in subsidies to manufacture chips in the US is now official. The company has announced an agreement with the US Department of Commerce to receive direct funding through the Chips and Science Act, securing what will likely be the last subsidies granted under this ambitious plan before a new federal administration takes office in Washington.The $1.5 billion award follows a preliminary memorandum of terms signed in February 2024, according to GlobalFoundries. The funding will be used to expand the company's "essential" chip manufacturing capabilities in the United States, which will, in turn, provide a more resilient and reliable supply chain for the country's high-tech industry.The Chips and Science Act's plan to strengthen US semiconductor manufacturing has been five years in the making, said GlobalFoundries' president and CEO, Thomas Caulfield. The company is a crucial element of the US economy, supply chain, and national security, with two plants accredited as "Trusted Foundry" sites to manufacture secure chips for the US government.GlobalFoundries will use the $1.5 billion award to support three specific projects. First, the company will expand its existing chip fab in Malta, New York, by implementing "critical technologies" already used in other locations outside the US. This new technology is expected to provide a reliable supply of essential chips for the US automotive industry.GlobalFoundries' second project is the modernization of its existing plant in Essex Junction, Vermont, where production capabilities will be significantly expanded. The plant will also host a new facility designed for high-volume manufacturing of gallium nitride (GaN) semiconductors, which, according to GF, are essential for the next generation of electric vehicles, data centers, IoT devices, smartphones, and more. // Related StoriesLastly, GlobalFoundries will build a completely new manufacturing plant within its Malta, New York campus. The new fab is expected to meet domestic demand for essential chips in the aerospace, defense, computing, and automotive industries, though GF will proceed "in alignment" with market conditions and customer demand.GlobalFoundries will add the $1.5 billion award from the Chips Act to a much larger investment plan across its two US sites. The company plans to invest $13 billion over the next 10 years, with additional funding from the New York State Green Chips Program ($550 million), the state of Vermont, and other unnamed incentives.All things considered, the plan is expected to create around 1,000 direct manufacturing jobs and more than 9,000 construction jobs. GF will also work with New York and Vermont authorities to develop a qualified workforce for its semiconductor business.