GLOBALFOUNDRIES Inc.

GlobalFoundries (GFS) shares were up more than 8% in pre-market trading Tuesday after the chip manufacturing and design company announced on Monday that it has secured a $1.5 billion subsidy from the U.S. government—the first sizable award from a $39 billion fund established in 2022 as part of the U.S. CHIPS and Science Act to revitalize domestic chip production.

The chipmaker, which recently opened a $4 billion plant in Singapore, plans to use the grant to build a new 澳洲幸运5官方开奖结果体彩网:semiconductor production facility in Malta, New York, and scale its existing operations in Northern Vermont. The company will also gain access to $1.6 billion in available loans, with the total funding expected to generate $12.5 billion in potential investment and around 10,500 construction and manufacturing jobs across both states, the 澳洲幸运5官方开奖结果体彩网:U.S. Department of Commerce (DOC) said in a statement.

GlobalFoundries manufactures chips that play a key role in national security and across critical sectors of the economy, powering everything from 澳洲幸运5官方开奖结果体彩网:defense communications systems, satellites, and auto collision detection technology. "The chips that GlobalFoundries will make in these new facilities are essential chips to our national security," Commerce Secretary Gina Raimondo said. Raimondo added that the company’s expansion of its Malta plant would also provide a stable supply of chips for auto suppliers and manufacturers.

During the pandemic, a global semiconductor shortage exposed U.S. industry’s over-reliance on foreign-produced chips, leading some 澳洲幸运5官方开奖结果体彩网:automakers and manufacturers to halt or cease production. Currently, only around 12% of chips are manufactured in the United States, with the lion’s share produced in Asia. Before Monday’s grant announcement, the Commerce Department 澳洲幸运5官方开奖结果体彩网:had awarded defense contra♓ctor BAE Systems (BAESY) $35 million in December, and 澳洲幸运5官方开奖结果体彩网:Chandler, Arizona-based M🐼icrochip Technology (MCHP) $162 million in January.

GFS shares have oscillated within an orderly 澳洲幸运5官方开奖结果体彩网:descending channel since early April last year. Although the price sits at the midpoint of the pattern, volume has increased in recent weeks, indicating more active participation in the stock. If the shares move higher, monitor the channel’s top trendline, currently around $60.75, as a potential area of 澳洲幸运5官方开奖结果体彩网:resistance. Conversely, keep an eye on buyers’ ability to defend support near the pattern’s loweꦐr trendline around $46🎶.20.

The s💟tock was up 8.3% at ♛$57.79 at around 7:15 a.m. ET Tuesday.

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