GlobalFoundries said its CHIPS Act funding does not involve an equity stake for the US government, following recent moves that saw Washington take a 10% stake in Intel.

The US-based semiconductor manufacturer clarified its position at the Deutsche Bank Technology Conference, with CFO John Hollister saying funding is tied to achieving specific project milestones.

The announcement comes days after the US government converted CHIPS Act grants into equity at Intel, and made separate agreements with Nvidia and AMD to receive a share of their China sales revenue from advanced chips.

GlobalFoundries’ CHIPS Act agreement covers capacity expansion across its fabrication plants.

Earlier in 2025, the company raised its planned investment to US$16 billion, including US$1 billion for capital spending and US$3 billion for research in new chip technologies.

The firm said this investment is expected to span over ten years.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ CHIPS Act funding structures reflect companies’ financial positions and strategic needs

The difference between Intel and GlobalFoundries’ CHIPS Act deals reveals how the government tailors funding structures to each company’s circumstances.

Intel’s conversion of grants to equity reflects the company’s weakened financial position, with analysts noting that while the $8.9 billion provides temporary relief, Intel’s fundamental competitive issues against Nvidia and AMD remain unresolved1.

GlobalFoundries, in contrast, operates under milestone-based funding without equity requirements, suggesting the company maintains stronger financial health and negotiating position.

This flexible approach allows the government to provide support while managing risk differently across recipients, taking direct stakes in struggling companies while maintaining arms-length relationships with healthier partners.

2️⃣ CHIPS Act addresses critical geographic concentration that threatens U.S. competitiveness

The legislation targets a fundamental vulnerability: more than 70% of global chip manufacturing currently occurs in Taiwan, South Korea, Japan, and China2.

The strategic importance becomes clear when considering the projected impact. U.S. advanced logic manufacturing capacity is expected to grow from 0% in 2022 to 28% of global capacity by 20323.

Recent GlobalFoundries developments