Chipmaker GlobalFoundries seeks funding under CHIPS Act

(Reuters) - Contract chipmaker GlobalFoundries said on Monday it has submitted applications for funding under the U.S. CHIPS act to expand capacity and modernize its local manufacturing facilities.

The CHIPS and Science Act provides a total of $52.7 billion in subsidies for U.S. semiconductor production, research and workforce development. It also includes a 25% investment tax credit for building chip plants estimated to be worth $24 billion.

"This federal support is critical for GF (GlobalFoundries) to continue growing its U.S. manufacturing footprint, strengthening U.S. economic security, supply chain resiliency, and national defense," senior executive Steven Grasso said in a statement.

The U.S. Commerce Department had said in August more than 460 companies expressed interest in winning government semiconductor subsidy funding in a bid to boost the country's competitiveness with China's science and technology efforts.

Malta, New York-based GlobalFoundries makes wireless connectivity chips used in mobile phones, WiFi routers and radio towers. Its customers include the U.S. aerospace and defense firms, including Lockheed Martin.

(Reporting by Jaspreet Singh in Bengaluru; Editing by Shilpi Majumdar)