By Zaheer Kachwala
(Reuters) -GlobalFoundries said on Wednesday its CHIPS Act funding is "well intact" and the framework does not involve any type of equity, days after the U.S. government took a 10% equity stake in chipmaker Intel.
Speaking at the Deutsche Bank Technology Conference, the company's finance chief, John Hollister, said the company is receiving government funding under the act according to its milestone completion.
The government's move to take a 10% stake in Intel last week sparked questions
about the outlook for corporate America after U.S. President Donald Trump said he plans to do other similar deals.
The stake — along with an unprecedented deal with Nvidia and AMD to give the government 15% of revenue from their China sales of some advanced chips — is a clear signal of the Trump administration's growing involvement in corporate affairs.
Intel's deal was structured in a way that converted government grants under the CHIPS Act into equity in the company. The Act was signed into law by former President Joe Biden in 2022 to boost semiconductor manufacturing and production in the country and counter China's growing influence.
Trump had previously sought to change some of the Act's conditions, saying it did not align with his executive orders. Each award recipient has distinct terms and milestones in their agreements.
GlobalFoundries' CHIPS Act framework includes expanding capacity across fabrication plants.
Earlier this year, the company increased its investment plans to $16 billion and allocated an additional $1 billion to capital spending and $3 billion to research in several emerging chip technologies.
CFO Hollister said on Wednesday the investment will cover more than a decade of spending.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Alan Barona)
