GlobalFoundries has unveiled plans to construct a state-of-the-art packaging and testing facility at its Malta, New York location. This move is aimed at meeting the increased demand for semiconductors manufactured entirely in the United States. The company also mentioned that the new extension would include services for assembling and testing silicon photonics, a technology that integrates optical and electrical components to achieve superior efficiency and performance compared to traditional silicon and copper-based chips.

The projected cost for building this facility is approximately $575 million, with an additional $186 million anticipated for research and development over the forthcoming decade. To aid this significant investment, the state of New York has committed up to $20 million, adding to the already substantial $550 million it has allocated to support GlobalFoundries. Furthermore, the U.S. Department of Commerce is set to provide $75 million in direct funding, bolstered by the $1.5 billion GlobalFoundries received under the CHIPS and Science Act.

Dr. Thomas Caulfield, CEO and President of GlobalFoundries, expressed enthusiasm about the project, stating, “We are honored to collaborate with both state and federal government on this new venture, which directly addresses our clients’ requests for more geographical diversity in their supply chains and enhanced advanced packaging solutions for GF silicon photonics, Trusted, and 3D/HI products. The New York Advanced Packaging and Photonics Center will stand out in our field and will significantly contribute to the growth of New York’s leading semiconductor manufacturing and innovation ecosystem.”

The establishment of a domestic advanced packaging facility is essential for the U.S. to achieve its goal of silicon independence. Currently, many of these processes are predominantly carried out in Asia. For instance, TSMC produces 4nm chips in its Arizona factory but still sends them to Amkor in Taiwan for packaging. This will continue until Amkor finishes constructing a facility close by in Arizona.

Having a GlobalFoundries packaging center in New York not only enhances chip security by keeping the silicon wafers within U.S. borders but also capitalizes on the company’s status as a trusted supplier to the U.S. Department of Defense. This positions GlobalFoundries as an ideal provider for the advanced semiconductor needs of the U.S. military, which is crucial for maintaining technological leadership globally.