GlobalFoundries will invest nearly $12 million over a decade to build a second semiconductor manufacturing facility in Saratoga County, officials announced on Monday, thanks to a $1.5 billion federal grant.

The new 358,000-square-foot building at the Malta campus will triple the company’s capacity to meet the growing demand for chips. It will create 1,500 direct jobs and thousands of indirect jobs. The company plans to invest more than $11.6 billion over the next 10 years as part of the project, according to Gov. Kathy Hochul. 

GlobalFoundries is getting $1.5 billion in funding from the federal Chips & Science Law.

The company is receiving some state benefits toward the project including $575 million in Green CHIPS tax credits. Also, the company will receive a $30 million infrastructure investment from The New York Power Authority.

“New York is becoming the best place on earth to build a business,” Hochul said in a statement. “Thanks to our pro-business policies, commitment to innovation and best-in-the-nation workforce, green jobs and high-tech manufacturers are flocking to the Empire State.”

GlobalFoundries will also be required to spend at least $60 million in workforce community investments and work with Empire State Development on academic research and development projects, workforce and talent development and K-12 STEM education curriculum development. 

The company currently employs about 2,500 people in the Capital Region.

New York U.S. Sen. Chuck Schumer, D-N.Y., said the federal CHIPS and Science Law helped spur this expansion project.

“When I wrote the CHIPS & Science Law, I made sure there was funding especially for the feature-rich, legacy chips that GlobalFoundries produces in Malta and that are essential for America’s auto industry and national defense,” he said in a statement. “We all remember the days of the pandemic when chip shortages sky rocketed car prices and created supply chain issues leading to months-long wait times for cars and electronics, and investments like this are how we can help prevent that from happening again.”  

Todd Shimkus, president of the Saratoga County Chamber of Commerce said the news of the expansion is welcome news. The community has been hit with a wave of closings including Essity, QuadGraphics, VinylMax, AngioDynamics and Lehigh Cement.

“They can immediately start to reverse that trend and make sure that our vital components that we need for everyday uses are manufactured here in the U.S. – right here in Malta in Saratoga County, New York,” he said.

“This I think gives local people some confidence that in spite of some of the challenges we might face with inflation or layoffs at local firms, that the future looks really bright for Saratoga County,” Shimkus went on to say.  

A news conference is being held at GlobalFoundries on Tuesday at 1 p.m. to discuss the impact of this investment. In attendance will be Schumer and Hochul, along with U.S. Department of Commerce Secretary Gina Raimondo, GlobalFoundries President and CEO Thomas Caulfield and White House National Economic Council Director Lael Brainard.