In a move to secure domestic semiconductor supply for defense systems, Lockheed Martin and GlobalFoundries announced a strategic collaboration. The partnership will focus on developing and manufacturing advanced and next-generation chips for defense systems.
The collaboration is a critical step in ensuring that the US military has access to the latest and most advanced semiconductors; by working with GlobalFoundries, both can build a more resilient and secure supply chain for defense systems, as reported by Reuters.
Next-Generation Chips
GlobalFoundries is a leading global semiconductor manufacturer with manufacturing facilities in the United States, Europe, and Asia. The company has a strong track record of developing and manufacturing advanced chips for various industries, including defense, automotive, and consumer electronics.
According to Tom Caulfield, CEO of GlobalFoundries, they are excited to partner with Lockheed Martin to help them secure domestic semiconductor supply for their defense systems. He said the collaboration would help grow their business in the United States and support the US government's efforts to revitalize the domestic semiconductor industry.
The collaboration between Lockheed Martin and GlobalFoundries is expected to create hundreds of new jobs in the United States. It is also expected to help reduce the US's reliance on foreign semiconductor sources.
The CHIPS and Science Act, which aims to restart semiconductor production in the United States, is directly supported by the collaboration, according to the announcement.
The Act offers a $24 billion investment tax credit for manufacturing facilities and around $52 billion in government subsidies for the American semiconductor industry.
Challenges in the Global Semiconductor Industry
The collaboration announcement comes when the global semiconductor industry faces several challenges, including a global chip shortage and rising geopolitical tensions.
The collaboration between Lockheed Martin and GlobalFoundries is a sign that the US government and industry are working together to address these challenges and secure the future of the US semiconductor industry.
In addition to collaborating with GlobalFoundries, Lockheed Martin is investing in its semiconductor manufacturing capabilities.
Lockheed Martin recently opened a new All-Up Round III (AUR III) facility at Camden Operations in Arkansas. It will support increased production capacity for the PAC-3 Missile Segment Enhancement (MSE), the world's most advanced air defense missile.
The investments by Lockheed Martin and other companies indicate that the US semiconductor industry is rising. The industry is expected to create millions of new jobs in the coming years and contribute billions of dollars to the US economy.
Along with GlobalFoundries, Lockheed Martin will look for opportunities for outside investment, technology advancement, and cooperation with the US government.
The US government has accredited GlobalFoundries' production facilities in New York and Vermont, permitting them to build secure chips for use in delicate mission systems.
The businesses will also strive to create a chipset ecosystem that stacks and sews together many chips for quick and inexpensive production.
