The U.S. government on Monday said it will give GlobalFoundries (GFS) $1.5 billion as part of the U.S. CHIPS and Science Act to boost domestic chip manufacturing. That comes amid reports that the Biden administration could provide more than $10 billion in funding to Intel (INTC). Intel and especially GlobalFoundries rose Tuesday on the news.

GlobalFoundries will use the funds to expand and improve its existing fabrication plant in Malta, New York, as well as build a new fab on that Malta campus. It'll also improve a Vermont facility.

GlobalFoundries, which makes chips for others, aims to invest a total of $12 billion over 10 years, including public funding. New York state will chip in with $575 million in direct funding, plus $45 million in related aid.

The GlobalFoundries funding is the first significant award from the 2022 CHIPS and Science Act, which has $75 billion for loan and loan guarantees as well as $39 billion set aside for grants

Intel CHIPS Act Award Near

Meanwhile, the Biden administration is in discussions to provide more than $10 billion in CHIPS Act subsidies to Dow chip giant Intel, Bloomberg reported Friday evening, citing sources. The funding is expected to include outright grants as well as loans.

https://www.investors.com/news/technology/globalfoundries-u-s-awards-1-5-billion-from-chips-act-big-intel-subsidies-soon/