Semiconductor manufacturer GlobalFoundries Inc, (NASDAQ: GFS) has entered into a $117 million agreement with the US Department of Defense (DoD) to provide a strategic supply of US made semiconductors that are critical to national security systems. The chips will be securely manufactured at GF’s Fab 8 in Malta, New York, and will be used in some of the nation’s most sensitive defense and aerospace applications.
The new agreement between the two will provide DoD with a supply of semiconductor chips manufactured on GF’s differentiated 45nm SOI platform. As per the agreement, these chips will be manufactured in GF’s Fab 10 in East Fishkill, New York. In addition to providing continuity of supply for the DoD, this technology transfer to Fab 8 will enable GF to continue offering its 45nm SOI platform to commercial customers after GF’s Fab 10 transitions to ON Semiconductor as previously announced in April 2019.
“GF is proud to be a long time supplier to the U.S. Government, and we remain deeply committed to meeting the semiconductor technology needs of the Department of Defense, as well as the technologies so critical to our national security,” said GF CEO Tom Caulfield. “The strong public-private partnership demonstrated with this new supply and tech transfer agreement is an excellent example of the impact federal collaboration and investment in semiconductor manufacturing can have on strengthening domestic supply chains. Our partnership boosts the national economy, while also securing a strategic and reliable supply of chips needed by the U.S. government for aerospace, defense, and other mission-critical applications.”
In a supportive statement, the DoD said: “This agreement with GlobalFoundries will strengthen the domestic microelectronics industrial base, as part of the nation’s effort to sustain its semiconductor manufacturing capability necessary for national and economic security. Our agreement will ensure access to 45nm SOI semiconductors critical to DoD strategic systems, and is the latest collaboration in the longstanding partnership between the DoD and GF to provide silicon-based semiconductors for defense aerospace applications.”
As per the agreement, GF targets delivering the first chip in 2023.
GF employs nearly 3,000 people at Fab 8 and has invested more than $15 billion in the facility. GF’s Fab 8 is in compliance with both U.S. International Traffic in Arms Regulations (ITAR) and highly restrictive Export Control Classification Numbers under the Export Administration Regulations (EAR). GF is working with the U.S. government to secure classified status for Fab 8.
GF’s experience with ITAR and EAR regulations, in addition to the secure manufacturing being done at Fab 8 and the classified manufacturing taking place at Fab 9 in Vermont and Fab 10, are key to the GF Shield Program and GF’s embracing its role as the nation’s most secure and trusted semiconductor manufacturer. The GF Shield program extends to GF commercial customers across all sectors a level of key safeguarding and protection principles modelled on those GF uses to manufacture semiconductors for government entities.
