Home / Business and Economy / GlobalFoundries Secures CHIPS Act Funding, Expands Chip Production Plans
GlobalFoundries Secures CHIPS Act Funding, Expands Chip Production Plans
27 Aug
Summary
- GlobalFoundries' CHIPS Act funding "well intact" with no equity stake
- Company expanding capacity across fabrication plants, investing over $16 billion
- U.S. government takes 10% equity stake in Intel, 15% revenue share from China sales
According to a report from August 27, 2025, semiconductor manufacturer GlobalFoundries has confirmed that its funding under the U.S. government's CHIPS Act remains "well intact," with no equity stake required. This contrasts with the recent move by the government to take a 10% equity stake in Intel, as well as a 15% revenue share from some of Nvidia and AMD's China sales.
GlobalFoundries' finance chief, John Hollister, stated that the company is receiving CHIPS Act funding based on its milestone completion. The company has also increased its investment plans, allocating an additional $1 billion to capital spending and $3 billion to research in emerging chip technologies. Hollister said this investment will cover more than a decade of spending.
The government's involvement in the semiconductor industry has raised questions about the future of corporate America. While the CHIPS Act was signed into law in 2022 to boost domestic chip manufacturing and counter China's influence, the recent equity deals with Intel, Nvidia, and AMD suggest a more hands-on approach by the U.S. administration.
Despite these developments, GlobalFoundries appears to be moving forward with its expansion plans, leveraging the CHIPS Act funding to grow its fabrication capacity across multiple facilities.
