WASHINGTON, Nov 6 (Reuters) - GlobalFoundries ( GFS )
and at least two other chipmakers are poised to receive their
final Chips and Science Act awards from the Biden
administration, a person briefed on the matter said, a sign of
progress amid growing concerns about the pace of the award
rollout.
The U.S. Commerce Department notified Congress at least
three companies are close to receiving a final award, the person
and another source said. The Commerce Secretary must notify
appropriate committees at least 15 days before making any deal
over $10,000,000.
Reuters could not determine the timing of the award
announcement or the exact amount, though it is expected to be
close to the initial sum.
A preliminary agreement was announced by the Commerce
Department in February to award $1.5 billion to GlobalFoundries ( GFS )
to build a new semiconductor production facility in Malta, New
York, and expand existing operations there and in Burlington,
Vermont.
The three companies are among 21 awarded about $37
billion in preliminary agreements through the bipartisan 2022
CHIPS ACT, aimed at luring chipmakers out of Asia to expand
production in the U.S. So far, only one has been finalized and
announced. It went to Polar Semiconductor for $123 million to
expand and modernize a chip fab in Bloomington, Minnesota.
But the fact that Congress has been notified of at least
three deals shows the Biden administration is making headway on
final terms, amid growing concern among award recipients that
Republican Donald Trump could scuttle the grants when he becomes
president. Reuters could not determine the other two companies
closing their deals.
GlobalFoundries ( GFS ) declined to comment.
A Commerce department spokesperson decline to comment on
GlobalFoundries ( GFS ) and said: "Per statute, the congressional
notification is a routine part of the Chips Program Office
process and doesn't indicate that the award terms are final."