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).
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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.
Intel is building or expanding chip plants in Ohio, Arizona and New Mexico with a combined $43.5 billion price tag.
Completion of the Ohio chipmaking project was recently pushed until late 2026 vs. prior plans for production to start in 2025.
Ohio and Arizona are presidential battleground states.
Taiwan Semiconductor Too?
In recent weeks, there have been reports that the Biden administration would begin ramping up CHIPS subsidies. In addition to Intel and GlobalFoundries, chip foundry titan Taiwan Semiconductor Manufacturing (TSM) and Micron Technology (MU) are seen as likely recipients. Taiwan Semiconductor, which makes chips for Apple (AAPL), Nvidia (NVDA) and many others, is building two plants in Arizona.
Chip Stocks
Intel stock rose 1.45% late Friday following the Bloomberg report of looming chip subsidies. Shares are down 13.4% in 2024, trading slightly below their 50-day line.
GlobalFoundries stock is off 11.9% this year, in a downtrend for the past year.
Taiwan Semiconductor fell 4.8% last week. TSM stock has leapt 21.8% in 2024, closing in on its January 2022 all-time high.
Micron stock tumbled 7.1% last week, falling below its 50-day line decisively. Shares have fallen back from a two-year high in late January.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
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