The Biden administration announced on Monday its plan to allocate $1.5 billion to GlobalFoundries, a computer chip company, for the purpose of expanding its manufacturing facilities in New York and Vermont.

The announcement is the third award of direct financial support for a semiconductor company under the 2022 CHIPS and Science Act. The law enables the government to invest more than $52 billion to revitalize the manufacturing of computer chips in the United States as well as advance research and development.

During a press call, Commerce Secretary Gina Raimondo stated that the chips produced by GlobalFoundries in their new facilities are crucial. These chips are used in advanced military technology, electric cars, and ensure that smartphones have up-to-date features and faster internet access for Americans.

Aside from the initial funding, the government will also supply loans amounting to $1.6 billion, resulting in a combined investment of around $12.5 billion from both the public and private sectors.

GlobalFoundries plans to utilize the funds to finance the development of a state-of-the-art chip manufacturing facility in Malta, New York. Additionally, they aim to boost productivity at their current Malta plant through a strategic partnership with General Motors and rejuvenate their Burlington, Vermont plant.

The plans anticipate generating 1,500 job opportunities in manufacturing and 9,000 job opportunities in construction within the next ten years. As a condition of the agreement, $10 million will be allocated towards training employees and GlobalFoundries will continue providing its current $1,000 yearly allowance for child care and child care assistance to construction workers.

Chuck Schumer, the Democratic Senator from New York, played a key role in creating legislation that allows for the financing of chip manufacturing facilities. He believes this technology is crucial for both the American economy and national security, comparing it to a basic necessity like food. In an interview with The Associated Press, he warned that the U.S. could face similar disruptions as seen during the COVID-19 pandemic, where a shortage of chips led to production delays for auto companies.

Schumer stated that the Democrats will take necessary measures to prevent other nations, such as China and Russia, from gaining economic superiority over the United States.

With a significant election taking place this year, the balance of power in the White House and Congress is at stake. The state of the United States economy has been a significant source of worry. Republican legislators have emphasized that the spike in inflation rates in 2022 has negatively impacted the purchasing power of families, which has become a pressing issue and has had a detrimental effect on President Joe Biden’s approval ratings.

However, Democrats have emphasized their actions to alleviate inflation and their focus on long-term investments that are expected to stimulate growth. These investments include increasing computer chip production and improving infrastructure.

Schumer further stated that the investments, which received some support from both parties, demonstrate the Democrats’ focus on investing in the nation’s future in ways that could yield positive results for years to come.

Schumer emphasized the importance of showcasing a promising future to the American people, stating that it leaves a significant impact.

Source: wral.com