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GlobalFoundries' poised to get final Chips Act award, source says
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GlobalFoundries' poised to get final Chips Act award, source says
Nov 6, 2024 3:50 PM

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."

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