GlobalFoundries Secures A Contract With The Pentagon

Jun 10, 2016

GlobalFoundries has won a contract to produce computer chips for the defense department at two plants it acquired last year from IBM.

The chips will be made at the company's Fabs, or fabrication plants, in Essex Junction and in East Fishkill, New York, which GlobalFoundries took over last year.

A GlobalFoundries spokesman says the seven-year agreement with the Department of Defense is strategically important to the company, but it’s not a high-volume contract.

He declined to say how much the contract is worth and it’s not clear whether it will lead to any additional jobs in Essex Junction, where about 3,000 people are employed.

Under IBM the Essex plant was designated a “Trusted Foundry” by the U.S. government, which allowed it to manufacture chips for the defense industry.

The spokesman says after a recently-completed review process, the plant has been officially re-certified under GlobalFoundries.