GlobalFoundries Inc. (NASDAQ:GFS) announced on Wednesday that it has secured an additional $9.5 million in federal funding from the U.S. government to advance the production of Gallium Nitride (GaN) on silicon semiconductors at its Essex Junction, Vermont facility.
This funding brings the company closer to large-scale manufacturing of GaN chips, which are pivotal for high-performance, energy-efficient applications across industries such as automotive, aerospace, defense, and datacenters.
GaN chip technology offers superior capabilities in handling high voltages and temperatures, making it ideal for radio frequency (RF) and high-power control systems.
With this new investment, GlobalFoundries will enhance its GaN portfolio, adding more tools and equipment to increase production and improve prototyping and reliability testing. The company is committed to providing a faster, more efficient path for customers to develop innovative products using GaN's power and energy efficiency benefits.
Also Read: UnitedHealthcare CEO Brian Thompson Fatally Shot Outside NYC Hotel
Nicholas Sergeant, Vice President of IoT and Aerospace and Defense at GlobalFoundries, expressed pride in the company's leadership in GaN technology, which is expected to drive innovation in energy-efficient RF performance and faster-charging, longer-lasting batteries.
The funding, provided by the U.S. Department of Defense's Trusted Access Program Office, is part of an ongoing federal investment to bolster the U.S. semiconductor supply chain.
Since 2020, GlobalFoundries has received more than $80 million in government support for its GaN program.
The company's Vermont facility remains a global leader in 200mm semiconductor manufacturing, with a new GaN Power Center in Kolkata, India, helping to extend its capabilities.
According to Benzinga Pro, GFS stock has lost over 14% in the past year. Investors can gain exposure to the stock via Renaissance IPO ETF (NYSE:IPO).
Price Action: GFS shares are trading higher by 1.1% to $45.13 at last check Wednesday.
- Walmart, Target, Bath & Body Works Stand Out As Black Friday Winners: Analysts
Photo: Shutterstock
