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GlobalFoundries Receives $3 Billion Contract for Chip Manufacturing

GlobalFoundriesannouncedit received a 10-year contract from the U.S. Department of Defense (DoD) to supply domestically manufactured semiconductors f...

GlobalFoundries Receives $3 Billion Contract for Chip Manufacturing

GlobalFoundriesannouncedit received a 10-year contract from the U.S. Department of Defense (DoD) to supply domestically manufactured semiconductors for defense and aerospace uses. The contract features an initial award of $17.3 million in September and a 10-year ceiling of $3.1 billion.

Under the contract, the Defense Department and its contractors will gain access to the semiconductor technologies used at the GlobalFoundries’ U.S. facilities. Those sites have top-level security accreditation from the Pentagon, which includes security measures to protect sensitive data and maintain the integrity of chip production.

The DoD and its contractors will also join GlobalFoundries’ design ecosystem and receive early access to emerging technologies, IP libraries, full-scale volume manufacturing, and rapid and efficient prototyping.

The DoD’s Defense Microelectronics Activity Trusted Access Program Office granted the contract. The deal represents the third 10-year contract between the DoD and GlobalFoundries’ Trusted Foundry business team.

In May 2022, GlobalFoundries agreed to a $117 million DoD deal to move its 45-nanometer SOI semiconductor process, which gained its Category 1A Trusted Supplier status in May 2023.

Image Credit: Ascannio / Shutterstock.com

Ray Diamond
Ray Diamond
Ray is an expert in grinding polycrystalline diamond (PCD) and cubic boron nitride (CBN) tools. He works with technologies like laser machining, EDM, and CBN wheels to deliver ultra-precise results for hard and brittle tool materials.