ESSEX JUNCTION, Vt. (WCAX) – State and local officials gathered in Essex Junction Friday to celebrate the next generation of microchips to be produced in Vermont. The Biden administration last month announced millions in grants and loans to GlobalFoundries for upgrades that officials say will be vital in keeping the state’s largest employer at the cutting edge of semiconductor production.
The sprawling Fab 9 campus in Essex Junction is expected to receive $125 million from the CHIPS Act to help build out the next generation of high-tech gallium-nitride computer chips. The semiconductors are more energy efficient and able to handle more computing power, paving the way for the future of electric vehicles, cell phones, artificial intelligence, and new technology for the Department of Defense.
“Upgrading existing facilities, expanding capacity, and enabling the high volume manufacturing of next-gen technologies,” said Thomas Caulfield, GlobalFoundries’ president.
The investment in tech is expected to be a boon for the workforce and the economy. Governor Phil Scott says Fab 9 is expected to bring around 400 jobs to the region in high-tech, manufacturing, and other support capacities. “Places like GlobalFoundries and all of the employees that are here and adding to our economy — that’s our lifeblood,” Scott said.
Leaders also say it could help turn the declining demographic tide by providing new workforce opportunities, jump-started by $4 million in state dollars for apprenticeships. “This kind of project will give so many Vermont students opportunities in tech,” said Rep. Becca Balint, D-Vermont
The CHIPS Act also has its skeptics, including Senator Bernie Sanders, who voted against it because of concerns about such a massive infusion of taxpayer dollars into a private company. But others see it as a way to bolster national security. “We’ll be able to sustain ourselves and not be dependent on other countries like China,” said Sen. Peter Welch, D- Vermont.
The funding was secured by former Senator Patrick Leahy before stepping back from the powerful Appropriations Committee. “It was not just a local thing, it was for the country,” Leahy said Friday.
After years of enduring cycles of layoffs and questions about its commitment to future chip-making in Vermont, the investment is a big step for the Malta, New York-based company. White House officials recently said that without the cash infusion, the Essex Junction facility and its 2,000 jobs — the largest employer in the state — would likely close.
Caufield acknowledged that government support was critical. “There has always been innovation at the heart of this site. Now, the funding allows that innovation to make economic sense for GlobalFoundries and the industry to produce here,” he said.
The funding will make its way to Vermont in the coming months but officials say the promised jobs could still take several years to materialize since semiconductor production is so complex.
Related Stories:
You Can Quote Me: Feb. 25, 2024
GlobalFoundries Essex Jct. plant to receive $125M out of federal grant
Big federal investment in GlobalFoundries to boost region’s economy
GlobalFoundries’ Essex Jct. plant poised to see major upgrades from federal grant
GlobalFoundries donates high-tech equipment to local high school
New partnership aims to make Vermont a tech hub, create jobs
