GlobalFoundries CEO: New York chip factory likely delayed if U.S. subsidy bill fails

A screen shows the firm logo for semiconductor and chipmaker GlobalFoundries Inc. through the company’s IPO at the Nasdaq MarketSite in Occasions Sq. in New York Town, U.S., October 28, 2021. REUTERS/Brendan McDermid

July 19 (Reuters) – A planned semiconductor factory in upstate New York will most likely be delayed if a monthly bill to bolster the U.S. personal computer chip market fails to move in the coming months, the main govt of GlobalFoundries Inc (GFS.O) informed Reuters on Tuesday.

The U.S. Senate is because of to vote later on on Tuesday on a slimmed-down edition of laws to supply $52 billion in subsidies and tax credits for the business far more than a yr right after passing its initially edition of a invoice. examine much more

The bill, which aims to counter climbing levels of competition from China, would give payments to businesses like Intel Corp (INTC.O), Samsung Electronics Co Ltd (005930.KS), Taiwan Semiconductor Manufacturing Co (2330.TW) and GlobalFoundries to assemble chip factories in the United States.

Very last year, GlobalFoundries, which makes chips for the U.S. armed forces and other consumers, said it would build a next factory at its headquarters in Malta, New York. GlobalFoundries has not supplied a rate tag or timeline for the new plant, but Main Govt Tom Caulfield stated the job will get significantly longer without having U.S. subsidies.

“To do it sooner rather than later, we would need federal government co-expenditure with us,” Caulfield advised Reuters in an job interview. “We have good free of charge hard cash movement generation, but we’d have to establish up the equilibrium sheet to go make these investments.”

By distinction, GlobalFoundries moved ahead before this month with a program to create a $5.7 billion manufacturing unit in France in cooperation with STMicroelectronics (STM.BN) that will be completely operational in 2026. read through a lot more

Caulfield claimed talks for that plant started just before the commence of this yr and arrived with each other in about 6 months because the French government moved rapidly with subsidies.

If U.S. subsidies had handed very last calendar year when first attempted, GlobalFoundries might have pressed ahead with the New York plant faster, but rather has turned its consideration to France and increasing a Singapore manufacturing facility, he mentioned.

“We could possibly have experienced to defer a thing in France to later mainly because we would not have had the bandwidth to do three matters at after. But we failed to have an alternative in the U.S., and we experienced an option in France,” Caulfield mentioned.

Reporting by Stephen Nellis and Jane Lanhee Lee in San Francisco Modifying by Lincoln Feast.

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