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GlobalFoundries secures $3.1B Department of Defense contract; 10-years for chip manufacturing

The Pentagon in Arlington County, Virginia. (Dreamstime/TNS)

GlobalFoundries has once again been awarded a contract by the U.S. The Department of Defense to manufacture semiconductor chips for aerospace and defense uses , the company announced Thursday.

The 10-year, $3.1 billion contract is the third sequential contract of its kind between the two entities, the company said in a release.

“GF is proud to begin this new chapter of our decades-long partnership with the U.S government, and to continue serving as the leading supplier of securely manufactured essential chips for the U.S. aerospace and defense industry,” said Mike Cadigan, chief corporate and government affairs officer of the company in the release. “This partnership provides DoD programs with ‘front-door access’ to advanced technologies in a way that is scalable and highly efficient.”

The company said it will receive an initial $17.3 million this month.

GlobalFoundries is DoD-accredited under the Trusted supplier Category 1A — the highest security level.

Under the contract the DoD will also have access to GlobalFoundries “design ecosystem, IP libraries, early-access to new technologies in development, quick and efficient prototyping, and full-scale volume manufacturing,” the release states.

U.S. Sen. Charles Schumer applauded the award Thursday.

“This historic $3.1 billion federal agreement between GlobalFoundries and the Department of Defense taps into Upstate New York’s thriving semiconductor industry to provide a secure supply of the microchips we need for national security,” Schumer said in a statement. “Now more than ever, we must invest in building domestic supply chains of semiconductors and other critical technology to ensure our military has access to secure, reliable chips. I wrote my CHIPS & Science Act to spark new investment in domestic microchip supply chains, including potential further expansion of GlobalFoundries, and power national security.”

GlobalFoundries is a leading company in semiconductor manufacturing.

In June the company announced a semiconductor partnership with Lockheed Martin to expand manufacturing in the U.S. Under this partnership, chips that Lockheed Martin needs for such defense and aerospace systems will come from GlobalFoundries.

The company also announced in May that it bought the rest of the land — 800 acres — in Luther Forest Technology Park, where the company’s campus is located. The company has plans to eventually build a second factory in the park that would be over 600,000 square feet.

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