Finance
Chipmaker GlobalFoundries says CHIPS Act framework does not involve equity
Published by Global Banking and Finance Review
Posted on August 27, 2025
2 min readLast updated: January 22, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on August 27, 2025
2 min readLast updated: January 22, 2026
GlobalFoundries confirms its CHIPS Act funding excludes equity, unlike Intel's recent 10% government stake. The company plans significant investments in semiconductor manufacturing.
By Zaheer Kachwala
(Reuters) -GlobalFoundries said on Wednesday its CHIPS Act funding is "well intact" and the framework does not involve any type of equity, days after the U.S. government took a 10% equity stake in chipmaker Intel.
Speaking at the Deutsche Bank Technology Conference, the company's finance chief, John Hollister, said the company is receiving government funding under the act according to its milestone completion.
The government's move to take a 10% stake in Intel last week sparked questions about the outlook for corporate America after U.S. President Donald Trump said he plans to do other similar deals.
The stake — along with an unprecedented deal with Nvidia and AMD to give the government 15% of revenue from their China sales of some advanced chips — is a clear signal of the Trump administration's growing involvement in corporate affairs.
Intel's deal was structured in a way that converted government grants under the CHIPS Act into equity in the company. The Act was signed into law by former President Joe Biden in 2022 to boost semiconductor manufacturing and production in the country and counter China's growing influence.
Trump had previously sought to change some of the Act's conditions, saying it did not align with his executive orders. Each award recipient has distinct terms and milestones in their agreements.
GlobalFoundries' CHIPS Act framework includes expanding capacity across fabrication plants.
Earlier this year, the company increased its investment plans to $16 billion and allocated an additional $1 billion to capital spending and $3 billion to research in several emerging chip technologies.
CFO Hollister said on Wednesday the investment will cover more than a decade of spending.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Alan Barona)
GlobalFoundries stated that its CHIPS Act funding is 'well intact' and does not involve any type of equity.
The U.S. government's 10% equity stake in Intel raised questions about corporate America's future, especially after President Trump indicated plans for similar deals.
GlobalFoundries receives government funding based on milestone completion, which is distinct from the equity model seen in Intel's deal.
Earlier this year, GlobalFoundries increased its investment plans to $16 billion, with additional allocations for capital spending and research in emerging chip technologies.
CFO John Hollister mentioned that the investment will cover more than a decade of spending.
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