U.S. DoD Awards $1.5 Billion Contract to GlobalFoundries for Secure Chips

Executive briefing: On February 12, 2024 the U.S. Department of Defense’s Defense Microelectronics Activity awarded a 10-year contract worth up to $1.5 billion to GlobalFoundries. The agreement guarantees secure, domestically produced semiconductors for defense, aerospace, and critical infrastructure programs, leveraging GlobalFoundries’ facilities in Malta, New York and Burlington, Vermont.

Key supply signals

Trusted manufacturing. The contract expands GlobalFoundries’ status as a DoD-accredited Trusted Foundry, covering radio frequency, mixed-signal, and high-voltage technologies.
Capacity investment. DoD funding supports tool upgrades and workforce development to increase output for defense and dual-use applications.
Resilience impact. The agreement underwrites secure supply for weapons systems, satellites, and communications gear that cannot rely on offshore fabs.

Control alignment

Supply assurance. Defense contractors and critical infrastructure operators should integrate the contract into secure microelectronics sourcing plans.
Compliance mapping. Align export controls, ITAR, and CMMC obligations with GlobalFoundries’ trusted manufacturing workflows.
Program scheduling. Coordinate with DoD program offices on production slots reserved under the agreement.

Action checklist

Engage GlobalFoundries on design enablement services available through the contract.
Update bill-of-materials risk assessments to reflect the expanded domestic capacity for sensitive chips.
Track DoD reporting requirements tied to trusted supply-chain metrics.

Sources

Zeph Tech helps defense and critical infrastructure clients leverage trusted foundry contracts to harden supply chains.