# Commerce Redirects CHIPS Funding for New York Fabs

On October 15, 2026, the U.S. Department of Commerce amended GlobalFoundries’ CHIPS award, redirecting up to **$955 million**—without increasing the award’s total value—to silicon photonics, silicon-germanium, and advanced packaging. The change supports a planned **$5 billion** investment in GlobalFoundries’ New York and Vermont facilities. Separately, GlobalFoundries plans two new semiconductor factories in Malta, New York, using up to **$21 billion in financing from Japan**; the first is expected to open in 2029. The announcements point to expanded U.S. semiconductor manufacturing and potential supplier demand, but neither signal identifies an open solicitation or contract award for suppliers.

- Semiconductor equipment, construction, advanced-packaging, and supply-chain firms can assess how their capabilities align with the announced facility and technology investments; specific supplier opportunities have not yet been identified.
- The CHIPS award amendment redirects existing funding rather than increasing the award’s total value, so businesses should distinguish the funding shift from new federal contract spending.
- The 2029 opening target provides a planning horizon for companies preparing to support the Malta fabs, while the New York and Vermont investments may also generate related supply-chain needs.

**Jurisdictions:** federal
**Industries:** Information Technology, Construction & Infrastructure
**Topics:** Physical Infrastructure, Grants & Funding, Digital Infrastructure
**Published:** October 15, 2026

### Government Entities
- U.S. Department of Commerce (Commerce)
- Government of Japan

### Vendors
- GlobalFoundries (CHIPS awardee; technology provider and operator for the planned fabs)

### Key Quotes
> GF was selected because fabs of this scale require more than capital. They require differentiated technology, operational excellence and a proven ability to execute.
> — Tim Breen, CEO, GlobalFoundries

### Sources
- [GlobalFoundries to open 2 new chip plants in New York with $21 billion in financing from Japan - The Washington Post](https://www.washingtonpost.com/business/2026/10/14/globalfoundries-chip-manufacturing-japan-trump/82bf3552-c807-11f1-aefb-abe4112d087e_story.html) - The Washington Post
- [Commerce Shifts $955M in GlobalFoundries CHIPS Award](https://www.executivegov.com/articles/commerce-globalfoundries-chips-award-955m-advanced-packaging) - ExecutiveGov