MALTA, N.Y.—Semiconductor manufacturer GlobalFoundries (GF) is planning to build a new fab on the campus of its Fab 8 facility in upstate New York that will double the site’s capacity. The planned construction is in addition to the company’s  immediate investments to address the global chip shortage at the Fab 8 facility, GlobalFoundries said in a release.

The company announced its expansion plans in July as it convened leaders from government and industry to advance the national discussion around solving U.S. semiconductor supply chain challenges. GlobalFoundries CEO Tom Caulfield was joined by U.S. Senate Majority Leader Chuck Schumer, U.S. Secretary of Commerce Gina M. Raimondo, former Pentagon officials, and executives from leading companies throughout the semiconductor supply chain.

GlobalFoundries said it will invest $1 billion to immediately add an additional 150,000 wafers per year within its existing fab to help address the global chip shortage. Following that, GF plans to construct a new fab that is expected to  create more than 1,000 new direct high-tech jobs and thousands more indirect jobs, including high-paying construction jobs for the region.

Following the successful investment model of Fab 8, GF is planning to fund the new facility through private-public partnerships that include customers, as well as federal and state investments. The new capacity will serve growing demand for secure, feature-rich chips needed by such high-growth markets as automotive, 5G connectivity, and the internet of things (IoT). The facility will also support national security requirements for a secure supply chain, GF said in the release.

These investments to expand GF’s U.S. manufacturing footprint are part of the company’s broader global expansion plans that include the recently announced new fab in Singapore and $1 billion planned investment to expand in Germany, all to meet the growing demand from customers worldwide.

“Our expansion and job creation in Malta requires a new economic model, based on the bold public-private partnerships being championed in Washington by visionary leaders Senator Schumer and Secretary Raimondo, as well as close collaboration with our customers,” said GF CEO Tom Caulfield, in the release. “Our industry is expected to grow more in the next decade than it did in the past 50 years, and GF is stepping up to do its part as we work together to address the growing demand for technology innovation for the betterment of humanity.

“We are honored to be joined by government and automotive leaders, national security experts, and our valued customers to continue the critical discussions needed to create a reliable supply of American-made chips to support the U.S. economy and national security,” he concluded.

GlobalFoundries said in the release that it has invested more than $15 billion in its Fab 8 facility over the last decade to support innovation and increase manufacturing capacity. The company is an accredited supplier of advanced semiconductors to the U.S. government, and is compliant with the U.S. International Traffic in Arms Regulations (ITAR).

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