GLOBALFOUNDRIES reaches $117M supply deal with U.S. Department of Defense

GlobalFoundries announced a $117 million agreement with the U.S. Department of Defense (DoD) to provide a strategic supply of U.S.-made semiconductors critical to national security systems. The chips are safely produced at GF's Fab 8 in Malta, New York, and will be used in some of the most sensitive defense and aerospace applications.

GF said the first chips for the agreement are scheduled to start shipping in 2023.

Building on a longstanding partnership between DoD and GF, the new agreement provides DoD with a supply of semiconductor chips fabricated on GF's differentiated 45nm SOI platform. Under the agreement, manufacturing of these chips will be transferred from GF's Fab 10 in East Fishkill, New York, to GF's Fab 8. In addition to providing continuity of supply to the DoD, this technology transfer to Fab 8 will allow GF to continue offering its 45nm SOI platform to commercial customers following the transition to ON Semiconductor from GF's Fab 10 announced prior to April 2019.

GF employs nearly 3,000 people at Fab 8 and has invested more than $15 billion in the facility. GF's Fab 8 complies with highly restrictive export control classification numbers under the U.S. International Traffic in Arms Regulations (ITAR) and Export Administration Regulations (EAR). GF is working with the U.S. government to ensure the classified status of Fab 8.

GF's experience with ITAR and EAR regulations, as well as safe manufacturing at Fab 8 and classified manufacturing at Fab 9 and Fab 10 in Vermont, is the key to GF Shield's program and GF playing its role as the nation's best foundry to claim, A safe and trusted semiconductor manufacturer. The GF Shield program extends to GF commercial customers in all industries a level of key safeguards and protection principles modeled on those GF uses to manufacture semiconductors for government entities.