Pentagon signs $3.1 billion semiconductor deal with GlobalFoundries

The US Department of Defense (DoD) has solidified a 10-year, USD 3.1 billion semiconductor manufacturing agreement with GlobalFoundries (GF), based in New York. This contract aims to produce vital microelectronics for existing and future aerospace systems and weapons platforms.

GF will receive an initial payment of USD 17.3 million as part of the contract with the Defense Microelectronics Activity (DMEA), according to a company statement released on September 21. The agreement stipulates that the Pentagon and its contractors will have access to GF-manufactured semiconductor technologies over the next decade.

Aside from providing the DoD access to domestically manufactured microelectronics systems and components, the agreement allows the Pentagon access to GF’s design ecosystem, IP libraries, early exposure to developing technologies, swift prototyping, and full-scale volume production.

This recent deal with the DoD is the third of its kind between the department and GF, with the previous agreements also spanning 10 years each. GF’s domestic semiconductor manufacturing facilities have been categorized by the DoD as Trusted Supplier Category 1A.

Manufacturing guidelines for 1A trusted suppliers have stringent security measures to safeguard sensitive information and ensure the highest levels of chip integrity, as stated in the company’s official statement. GF is accredited at the 1A level, providing the necessary security for various DoD programs and ensuring the highest level of microelectronics manufacturing security.

This strategic partnership underlines the importance of securing a domestic semiconductor supply chain for critical defense technologies and applications.

QUATRO Strategies International Inc. is the leading business insights and corporate strategy company based in Toronto, Ontario. Through our unique services, we counsel our clients on their key strategic issues, leveraging our deep industry expertise and using analytical rigor to help them make informed decisions to establish a competitive edge in the marketplace.

Make strategic decisions with confidence!

Learn how we can support you in setting the right strategy in a fragmenting global economy.

Interested in learning more?

Sign up for Top Insights Today

Top Insights Today delivers the latest insights straight to your inbox.

You will get daily industry insights on

Oil & Gas, Rare Earths & Commodities, Mining & Metals, EVs & Battery Technology, ESG & Renewable Energy, AI & Semiconductors, Aerospace & Defense, Sanctions & Regulation, Business & Politics.

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

Sovcomflot tankers turned away as Russia feels impact of sanctions on oil exports

The sanctions imposed on Russian oil exports are starting to have a tangible impact, with Indian oil refiners, significant customers of Russian oil, refusing tankers owned by state-run Sovcomflot PJSC due to sanctions-related risks. This move, combined with the broader sanctions targeting Russian…

Chinese EV maker BYD eyeing lithium assets in Brazil

Chinese electric vehicle (EV) manufacturer BYD Co. is actively considering the acquisition of lithium mining assets in Brazil. This strategic move aims to secure essential raw material supplies to facilitate the expansion of its electric car production ventures beyond the Asian market…

Chile’s SQM criticizes Tianqi’s intentions amid dispute over Codelco partnership

The chairman of Chilean miner SQM’s board has criticized the motives of a major shareholder, China’s Tianqi Lithium Corp, amid a public dispute over SQM’s planned partnership with state copper producer Codelco. Tianqi, which holds about 20% of SQM shares, raised concerns last week over…

Stay informed

error: Content is protected !!