The United States Commerce Department has finalized a US$1.5 billion subsidy for chipmaker GlobalFoundries to enhance semiconductor production in New York and Vermont.

The subsidy follows an earlier announcement and forms part of a US$13 billion investment plan over the next decade in the company’s US manufacturing facilities.

GlobalFoundries, the third-largest contract chipmaker globally, plans to incorporate technologies from its Singapore and Germany operations into its New York facility.

This will enable the production of chips for the US automotive industry. Furthermore, New York state will offer US$550 million in additional support.